Angola applies 10 pct charge to bank transfers abroad

3 July 2015

The government of Angola will apply a 10 percent charge known as a Special Contribution to the transfer of foreign currency abroad to services contracts for foreign technical assistance or management services, according to a recently approved decree.

The preamble of the presidential legislative decree justifies the measure based on the drop in oil prices on the international market, which caused a “direct negative impact” on the country’s foreign currency reserves and in the collection of tax revenues and the need to strengthen “control mechanisms in order to mitigate situations of capital flight, tax evasion and abusive tax planning.”

The application of this special contribution on the so-called Invisible Chains of Foreign Exchange was announced last March, on approving the revised State Budget (OGE) for 2015 due to the sharp drop in oil revenues and consequent foreign exchange inflows to the country, but was still waiting for regulation.

The approved decree, which came into force on 30 June, stipulates that the charge will not be applied to other transfers, such as wages or support for healthcare or education outside the country, but final procedures will be further defined by Ministry of Finance and the central bank.

The charge will be paid before the transfer of the funds although the Angolan State and its services (excluding public enterprises) and public social security, public utility associations and legally recognised churches will be exempt from paying it. (macauhub/AO)