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Investment & Legal Framework
The port of Lobito
* On this subject, it is important to emphasize that all
companies registered under the terms of this new law
should have a specific and unique social purpose,
that should correspond to the private investment op-
erations. If that is not possible, incentives and benefits
cannot be extended to other activities not covered in
the approval.
2. Contractual concession of tax incentives
The Law stipulates a few conditions that may allow the
exceptional concession of tax incentives, though a ne-
gotiation with the Angolan Government. This category
includes investment projects higher than 50 million US
dollars, along with those qualifying as relevant.
This qualification of relevance should take into consid-
eration criteria such as the industry, location and value
of the project, and is specifically granted by the Gov-
ernment according to these considerations. In order
to be considered as relevant, the project should meet
one of the following requirements: (i) it should create
at least 500 new jobs for Angolans; (ii) the investment
should contribute, on a quantitative basis, to the im-
provement of technologic and scientific investigation
in the Country and (iii) it should have expected annual
exportations higher than 50 million US dollars.
3. Tax benefits
The law defines tax benefits as benefits that aim to
reduce or exempt taxes due, in order to promote the
development and benefits of activities that have a rec-
ognized public interest, either social or cultural.
The benefits that constitute tax incentives includes de-
duction of taxable income, deduction of payable tax,
tax credit, exemption and reduction of tax and depre-
ciation rates, payment of duties and the deferral of tax
payment.
New Tax legislation will be approved, so as to define
the exemption and tax rate reductions for each of the
relevant taxes in force.
4. Import duties
In addition to possible negotiations (for importation of
goods estimated to reach more than US$ 50 million),
the importation of goods should follow the regime es-
tablished in the Customs’ Tariff Code.
According to the Tariff Code, goods imported under in-
vestment projects (referring to investment projects ap-
proved under Law 11/03, the former Investment Law)
benefits from a free rate, stated in columns five (con-
sumption tax) and eight (identified as PI – Investment
Projects) of the Customs Tariff Code. However, the ef-
fectiveness of this benefit depends on the presentation
of a list of goods previously approved by ANIP, along
with the corresponding Investment Certificate.
IV. Profits and dividends
The Law allows foreign investors to repatriate profits
and dividends, provided that each has invested at
least one million US dollars, after the implementation
of the project, along with evidence that the project has
been appropriately executed.
The transfer of profits and dividends is, under the
terms of the Law, objectively and proportionally gradu-
ated in respect to the value invested, the period of
concession and the dimension of tax and duties incen-
tives, investment timing, profits effectively generated,
the social and economic impact of the investment, and
its influence towards the reduction of differences in
less favorable regions, along with the impact of these
transfers in the Angolan balance of payments.
On these grounds, the graduation conditions are to
be negotiated between the investors and the Angolan
Government, and should be specifically included in the
investment contract.
The graduation criteria are assessed through the fol-
lowing conditions:
A
A
B
Remaining projects: Negotiable and defined in the
Investment Contract
1,000,000
10,000,000
10,000,000
50,000,000
1,000,000
5,000,000
3 years after effective
implementation
2 years after effective
implementation
2 years after effective
implementation
Devlopment
Area
Investment
Value (USD)
Start of transfer