The tax year follows the calendar year.
The annual CIT return for Group A and B must be submitted by the last business day of May and April, respectively, following the year to which the income relates.
Payment of tax
Taxpayers from Groups A and B that record sales (granting of services subject to WHT are excluded) are required to make advance CIT payments until the end of August and July, respectively.
This tax is to be calculated by applying the rate of 2% on the total amount of sales recorded by the taxpayers in the first half of the tax year. Advance payments are offset against the final CIT assessed.
The taxpayers may assess the 2% provisional payments of CIT due on sales based on the actual amounts received (rather than the turnover) but, in such cases, they are required to deliver the bank statements to the ATA.
Under the self-invoicing regime, the taxpayers are required to withhold 2,4% of CIT on the payments of goods
Taxpayers with tax losses may be exempted from the 2% provisional payments of CIT.
Advance payments made in excess may be deducted from subsequent advance payments up to the statute of limitation period of five years.
The final tax must be settled by the last business day of the month of April (Group B) and May (Group A) of the following year.
Tax audit process
The tax authorities may carry out tax audits to the monthly and annual tax returns.
Taxpayers may challenge any decision and file an appeal to the Chief of the respective Tax Office within 15 days upon receiving the tax notification.
Based on an unsatisfactory decision of the Chief of the Tax Office, the taxpayer may also file a hierarchical appeal addressed to the President of the Tax Authorities Executive Board (AGT) within 15 days upon receiving the tax notification.
The taxpayer still has the right to appeal against the final decision of the AGT in court within 60 days upon receiving the final decision from the AGT.
Statute of limitations
The statute of limitations in Angola is five years.
Topics of focus for tax authorities
The main areas of focus of the tax authorities relate to:
- WHTs due (regarding several taxes: CIT, IPU, IAC, and IRT).
- 1% stamp tax on receipts.
- Deductibility of costs for CIT purposes (foreign exchange differences, provisions, donations, exemptions relating to tax benefits areas).
- Consumption tax on production and on services provided by foreign entities.
- Transfer pricing.
Legal regime on invoices and similar documents
Invoices or similar documents must comply with the legal regime of invoices and similar documents (governed by the Presidential Decree 292/18).
Invoices and similar documents must comply with the following requirements (amongst other):
- Include the name, firm, tax address, and tax number of the supplier.
- Be duly dated, sequentially numbered.
- Include details on the nature, quantity, and price of the goods and services, as well as the taxes due.
- Be written in Portuguese and expressly mention that they were computer processed.
The legal regime of invoices and similar documents also established the following rules:
- The issuance of self-invoices is allowed, but limited to the hotel and restoration business;
- The existence of a monthly generic invoice for banking institutions;
- Issuance of invoices in triplicate, being the triplicate used to accompany the transport of goods;
- Obligation to issue invoices in an program certified by the Tax Authorities, applicable to taxpayers with a turnover above USD 250,000.
Suppliers that do not comply with this regime will be subject to fines and penalties. In addition, the acquiring entities cannot deduct the cost for CIT purposes and will be subject to an autonomous taxation on an amount that varies depending on the extent of the failure.