The Angolan government has proposed a reduction in the general corporate income tax rate from 25% to 20%, and a decrease in the tax rate applicable to the banking and insurance sectors from 35% to 30%. This move is part of the government's efforts to alleviate the fiscal burden on companies and boost competitiveness. The proposal was presented to the National Assembly as part of the discussions on the new Corporate Income Tax Code.
The government's proposal also includes the harmonization of tax rates on capital and property income at 10%. This change aims to simplify the tax system and promote fairness. The Corporate Income Tax Code is expected to unify the taxation of company income under a single tax, replacing the current Industrial Tax, Capital Application Tax, and Property Tax. The government believes that this reform will increase the competitiveness of companies, strengthen the business sector, and broaden the tax base.
The National Assembly's 5th Commission, responsible for economy and finance, had been discussing the proposal but suspended the debate on October 26 due to a lack of consensus on tax rates. The commission's chair, Aia-Eza da Silva Troso, expressed concerns that some tax rates were too high and could negatively impact investments and business activities. She noted that certain sectors could absorb higher taxes, but the proposed increases were significant and could influence investment decisions.
Deputy Lourdes Caposso from the MPLA party emphasized the need for the tax code to include incentives that promote employment and human capital development. Meanwhile, Agostinho Kamuango from the UNITA party suggested that the discussion on the tax code be suspended to allow for further analysis of pending issues. The government's proposal aims to address concerns from lawmakers and promote a more favorable business environment.
The Corporate Income Tax Code is part of the government's efforts to reform Angola's tax system. The code is expected to simplify tax compliance and promote economic growth. By reducing tax rates and harmonizing taxes on capital and property income, the government hopes to attract more investment and stimulate business development. The proposal will continue to be discussed in the National Assembly.
The Angolan government has been working to improve the business environment and attract foreign investment. The proposed reduction in corporate income tax rates is seen as a positive step towards achieving this goal. The government will continue to engage with lawmakers and stakeholders to finalize the tax code and ensure that it supports economic growth and development.
The National Assembly will continue to debate the Corporate Income Tax Code, taking into account the concerns and proposals from lawmakers. The government's efforts to reform the tax system and promote a more favorable business environment are expected to have a positive impact on Angola's economy. The proposed changes to the tax code are aimed at promoting economic growth, increasing competitiveness, and alleviating the fiscal burden on companies.
Key points
- The Angolan government proposes reducing the general corporate income tax rate from 25% to 20% and decreasing the tax rate for the banking and insurance sectors from 35% to 30%.
- The proposal includes harmonizing tax rates on capital and property income at 10% to simplify the tax system and promote fairness.
- The Corporate Income Tax Code aims to unify the taxation of company income under a single tax, replacing current taxes, and promote economic growth and competitiveness.
