Foreign tax credit
Foreign tax credits are generally not available to deduct against domestic tax.
Foreign tax credits may be granted according to the provisions of double tax treaties (DTTs).
Private Investment Law
The implementation of investment projects in Angola may benefit from tax incentives regarding CIT, SISA, IPU, IIT, and stamp tax.
The Private Investment Law establishes that the tax incentives may be granted according to the following two regimes: (i) prior declaration or (ii) special regime.
The benefits granted under the prior declaration includes, for example, a reduction of CIT rate by 20% for a period of two years and the reduction of the IIT rate applicable to dividends by 25% over a two-year period.
With regard to the special regime, the tax benefits are granted in case of private investments made in priority sectors (education, agriculture, health, tourism, telecommunications, energy, amongst others) and vary according to the zone where the investment is made (Zone A, B, C, and D).
In addition to the above listed benefits, entities may also benefit from other facilities, such as applications for permits, work visas, energy, water supplies, and others.
Reinvestment of reserves
Profits retained and then reinvested in new installations or equipment during the following three financial years may be deductible from taxable income during the following three years after the investment is finalised, at up to 50% of the value reinvested.