Portuguese banking sector calls on government to make double taxation agreement with Angola

8 June 2006

Lisbon, Portugal, 08 June – The Portuguese bank is pressuring the government to negotiate a double taxation agreement with Angola, similar to the one between Portugal and Brazil, in order to avoid paying tax on earnings in both countries.

Speaking to daily financial newspaper, Jornal de Negócios, João Salgueiro, president of the Portuguese Banking Association, said Wednesday that the double taxation agreement was essential to make investments by Portuguese financial institutions in Angola easier.

Last year, Angolan branches of Portuguese banks all together posted profit of close to 140 million euros.

Half of this figure was earned by Banco Fomento Angola, owned by Portugal’s BPI, representing 28 percent of the group’s profits.

The agreement between the two countries, Salgueiro said, would allow banks to benefit from reduced taxation at source on revenues distributed as interest or dividends, and eliminate or reduce double taxation.

Salgueiro also said that the agreement between Portugal and Brazil should be used as a model, which he considered “exemplary.”

As well as Banco Fomento, which last year led the Angolan market for loans, Banco Espírito Santo and Totta also operate in the country.

Portugal’s largest private bank, Millennium BCP is currently beginning its process of expansion, as is BIC, which is part-owned by Portuguese businessman Américo Amorim. (macauhub)