Angola | General State Budget For 2023

• Published date: 31 March 2023
• Subject Matter: Government, Public Sector, Tax, Income Tax, Sales Taxes: VAT, GST, Fiscal & Monetary Policy
• Law Firm: PLMJ
• Author: Isaque Ramos, Renata Valenti and Ana Raquel Magalhaes

Introductory note

Law 2/23 of 13 March 2023 has been published to approve the General State Budget for 2023 ("GSB 2023").

The 2023 State Budget estimates revenue and sets expenditure at AOA (kwanza) 20.1 trillion (about EUR 38.3 billion). Of this, AOA 3.4 trillion (EUR 25.5 billion) is tax revenue and AOA 6.6 trillion (EUR 12.5 billion) is financial revenue.

In order to consolidate macroeconomic stability, the government proposes to keep fiscal policy anchored to the continued consolidation of public finances. It aims to reduce the non-oil primary deficit through a series of tax and customs measures aimed at reducing costs in the supply chain of goods and services.

We will now take a look at the main tax innovations introduced by the GSB 2023.

Main changes

IRT - Imposto sobre os Rendimentos do Trabalho (Tax on Employment Income) is the Angolan equivalent of personal income tax.

Small traders and sole traders

The IRT rate applicable to taxpayers in Group C whose turnover in the financial year 2022 is AOA 10,000,000 (ten million kwanzas) or less is reduced to 6.5%. The taxable amount corresponds to the turnover of sales of goods and services not subject to withholding tax.

Regardless of the turnover, taxpayers in this group who keep accounts will be subject, with the necessary adaptations, to the rules for determining the taxable amount applicable to taxpayers under the general Industrial Tax system.

Industrial Tax - Imposto Industrial (Industrial Tax) is the Angolan equivalent of corporate income tax.

Deductible costs

Any VAT that has not been deducted within the legally established period will now be considered a non-deductible cost for the purposes of determining taxable income for the purposes of Industrial Tax.

The GSB 2023 stipulates that the Stamp Duty on the payment receipt borne by VAT taxpayers subject to the general or simplified system and carrying out exempt transactions is considered a deductible cost for the purposes of determining the Industrial Tax.

VAT

Manufacturing industry

Contrary to what was established in the General State Budget for 2022, the GSB 2023 provides that taxpayers linked to the manufacturing industry, whose turnover or import operations in the previous financial year exceeded AOA 10,000,000 (ten million kwanzas), will be subject to the general VAT taxation rules.

Simplified system

Similarly to the measure introduced in the General State Budget for 2022, taxpayers whose turnover or import operations in the previous...