Angola introduces tax on banking transactions in 2016

10 November 2015

The government of Angola in 2016 plans to introduce a 0.1 percent tax on the value of all banking transactions, with the exception of those relating to the payment of wages and “of a clearly personal nature”, according to the State Budget bill.

The document, cited by Angolan weekly newspaper Expansão, did no specify if the tax would be temporary or permanent, and it applies to all banking transactions, from deposits to loans, through to transfers, currency movements or safekeeping of securities.

The legal regime, its subjective and objective effects, the applicable rate, the taxable persons, exemptions, settlement rules, collection and payment of the special levy on banking operations will be defined by the President.

Banking and economic transactions are considered to be those performed by banking and non-banking financial institutions, which intermediate the collection of repayable funds, provide loans, services for securities and derivative instruments, payments, custody of securities and foreign exchange funds and other transactions set out in Law No. 12/15 of 17 June, the Financial Institutions Basic Law.

Excluded from the concept of banking operations are those related to wage payments as well as those of a clearly personal and nature others that are considered equivalent to these.

In addition to creating the special levy on banking, the government has also decided to extend the special levy on foreign exchange of invisible current operations, set up in the revised 2015 State Budget and regulated by Presidential Legislative Decree No. 2/15 of 29 June which focuses primarily on transfers for payment of services to foreign entities. (macauhub/AO)