The proposed amendment of the Income Tax Code (IRT) submitted by the Angolan government to parliament increases the threshold on tax exemption from €35,000 to €70,000 and raises taxes on higher incomes, the head of the General Taxation Administration (AGT) said in Luanda.
José Leiria noted that the current Code has a top tax bracket on income of over 230,000 kwanzas, subject to a fixed income tax rate of 25,750 kwanzas, in addition to 17% on the excess.
“Our proposal goes towards a restructuring of these brackets, with a view to income of more than 3 million kwanzas, for example, having a higher rate applied than salaries of 230,000 kwanzas, which at the moment is not the case,” he said, quoted by the Angop news agency.
The legislative package submitted by the government to the country’s parliament provides, among other measures, for the increase in the rates of Urban Property Tax (IPU) on land and derelict buildings, as part of decisions that are aimed at increasing the tax base.
The proposed taxation of assets included in this package leads to owners of large amounts of land being charged the IPU, which is a tax “focused on and designed for” urban areas and urban buildings.
“The aim,” he added, “is for land that is not being used for agricultural activity to be effectively taxed and thus drive it towards a better use,” he said.
Leiria also mentioned the introduction of Value Added Tax (VAT/IVA) saying that it had brought benefits to the formalisation of the economy, as an increasing number of companies are issuing invoices and demanding them from their suppliers. (macauhub)