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, property tax, 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. These are automatically applicable to investments that are not covered by the special regime.
The special regime applies automatically to private investments entailing the performance of the activities specifically listed in the Regulation of the Private Investment Law, which are all in the priority sectors (education, agriculture, health, tourism, telecommunications, energy, amongst others), in which case the tax benefits 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 five years after the investment is finalised, at up to 80% of the value reinvested depending on the location of the investment performed.