Angola’s Private Investment Law (LIP) regulation, which entered into force on 30 October, increases tax benefits for investors, at a time when the country intends to stimulate its non-oil economy and the export sector.
The new regulation approves the legal procedures for capital injections carried out under the new Private Investment Law of May 2018, applicable to projects started after 30 October, and provision is made for a transitional regime for other projects already underway, according to the regional coordination of the Legis-PALOP+TL legal database.
For investment projects started before 30 October, which are still governed by the regulations of the previous Law, interested parties should request the application of Presidential Decree No. 250/18, “an essential step if they also wish to benefit from the new more favourable regime.”
This regime, he added, includes, among other things, “the new automatic tax benefits for the holders of Private Registration Certificate (CRIP), assigned by the new competent entity, the Private Investment and Export Promotion Agency (Aipex).”
For investment projects approved before 26 June, the private investors concerned may also expressly request to fall under the scheme established in the new LIP and its regulations.
The most favourable benefits include reductions in Sisa Tax, Urban Property Tax, Industrial Tax and Capital Expenditure Tax set out in the special regime for the new A, B, C and D Zones in Law No. 10/18.
Other advantages, according to the same source, are the exemption of payment to Apiex for a year, namely the costs of filing the request, of issuing the CRIP, for a 2nd copy of or changes to the CRIP, for issuing statements and for reinvestment, ranging from about US$100 to US$3,000 (40,000 to 1 million kwanzas).
The economic activities covered by the priority sectors of activity that benefit from the new special regime are listed in detail in Presidential Decree No. 250/18, “corresponding to the market segments identifying the potential of import substitution or of promotion and diversification of the economy, including exports.”
The same source said “the benefits and other facilities already granted under previous investment laws and regulations shall remain in force for the time periods originally set, and no extension thereof shall be permitted.”
The president of Aipex, Licínio Vaz Contreiras, recently announced that since the approval of the new law in May 2018, the agency has received 57 investment proposals totaling US$502 million.
Of these proposals, 30% are related to foreign investment and the remaining 70% to national investment. (macauhub)