Angola prepares to end double taxation with China, UAE and Portugal

16 January 2019

The Angolan parliament on Tuesday in Luanda approved a set of documents related to agreements to eliminate double taxation and prevent income tax evasion with China, the United Arab Emirates and Portugal.

The move was approved by the Economic and Financial Affairs, Constitutional and Legal Matters, Foreign Affairs, International Cooperation and Angolan Communities Abroad of the National Assembly, according to the Angop news agency.

The Secretary of State for Cooperation, Domingos Vieira Lopes, noted that these agreements will allow an increase in investments in the country in various sectors, helping in the process of diversification of the Angolan economy.

“It is a climate of confidence that is created between the states in terms of investments,” said Vieira Lopes, according to whom business owners are heavily affected by double taxation when they are not covered by such agreements.

The specialised parliamentary committees also approved the draft resolution of the 4th Amendment to the Convention on the Coverage of Credit Risks for the Export of Goods and Services of Portuguese Origin to Angola, with a view to simplifying negotiations on future financing.

The amendment proposes to raise the maximum ceiling for credit coverage, currently set at 1 billion euros, to 3 billion euros.

The text also mentions the extension of the scope of the coverage, which includes not only bank financing, but also guarantees of credits or finance insurance granted by other financial institutions to the Republic of Angola, as well as credit terms for 10 years, compared with seven years as things stand.

In November 2004, the Angolan State signed a Convention on the Coverage of Credit Risks for the Export of Goods of Portuguese Origin to Angola, which was the subject of three amendments in 2006, 2008 and 2009.

Under the terms of the agreement Portugal undertakes to cover the risks of credit granted for the export of goods and services originating in Portugal and destined for the Republic of Angola through credit insurance company Cosec. (macauhub)