Introduces new private investment law
20 May 2011
The new law revoked the previous private investment legislation (Laws 11/03 an 17/03) and introduced the new regime applicable to national and foreign private investors in Angola. The new regime applies to national and foreign investors, provided that: 1) a minimum amount of US $ 1 million is invested; and 2) 50 percent or more of the capital is not held by a state or public body.
Law 20/11 offers several incentives to national and foreign investments in Angola, provided that they are carried out in the following sectors: agriculture and livestock; manufacturing (e.g. production of machinery, equipment, textiles, construction materials, food, clothing, footwear, etc.); rail, road, port and airport infrastructure; telecommunication and information technology; fisheries; energy and water; social housing; ealth and education; or tourism, or in developing areas, in Special Economic Zones, or in Free Trade Zones to be created.
In addition, to be eligible for the incentives, private investors must have organized accounts certified by an external auditor and no debts with the state, social security or financial system. The tax incentives available are negotiated and granted on a case-by-case basis, after the submission and approval of the investment project. The incentives available include: reduction or exemption of business income tax (Imposto Industrial) for a limited period of 1 to 10 years, depending on the location of the investment; reduction or exemption of investment income tax (Imposto sobre Aplicação de Capitais) for a limited period of 1 to 9 years, depending on the location of the investment; and reduction or exemption of transfer tax on the acquisition of real estate (Sisa) related to the investment project. Under certain conditions, and according to negotiations held for the investment project, other tax incentives can be granted.
-
Type:
-
Promotion and facilitation (Investment incentives, Special economic zones)
-
Industry:
-
Sources:
