Property taxation in Angola is undergoing changes with the introduction of a single code aimed at bringing together taxation on ownership and transfers into a single legal instrument, a technician from the General Tax Administration said in Luanda.
Property taxation is currently governed by the Urban Property Tax Code and the statute that sets out the tax rules for inheritance, donations and sisa (transfer tax), dating from the colonial period, 1970 and 1931, respectively.
The proposal of the bill under public consultation, presented on Wednesday to agents linked to the real estate market by the General Tax Administration (AGT), justifies the need for its amendment due to mismatches in its concepts, compared to the social and economic reality of the country.
AGT technician Michael Francisco said another justification is related to the introduction of municipalities in Angola, scheduled for 2020, as well as government guidelines for tax reform, according to the Angop news agency.
Another change that future legislation should introduce is the removal of rental income from property taxation, given that rentals should be taxed as individual or collective income.
Revenue collected from property taxation, another new aspect of the proposal for the new legal framework, is now destined for local authorities, in order to ensure their financing and the development of communities. (Macauhub)