Reducing the minimum amount for investment to US$500,000 to be given tax benefits is one of the important aspects of the review of the Private Investment Law, the chairman of the Angolan Industrial Association said Tuesday.
At the end of a meeting of the National Council for Social Partnership, held in Luanda, José Severino said that the association had proposed to set up five development areas, rather than two or three, and that tax benefits would be determined according to the level of growth of each of them.
According to Angolan news agency Angop, the chairman of the Angolan Industrial Association said he was certain that setting up the development areas would contribute to speeding up business growth in the country and reducing regional differences.
The change benefitting Angolan businesspeople is part of the proposed change to Law 20/11 of 20 May, the so-called Private Investment Law (LIP) and reduces the minimum investment from US$1 million to US$500,000.
For foreign investors the minimum investment of US$1 million per project will still apply, but that this figure would be “per private investor.”
Under current legislation if a company that applies for LIP incentives has five foreign partners each of them would be considered to be a “private investor” and each would have to invest US$1 million, raising the minimum investment to US$5 million. (macauhub/AO)