investing in angola in focus/rsa... · 1 private investment law investing in angola the new regime...

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Private Investment LawINVESTING IN ANGOLA

The new regime for private investment in Angola was approved by Law n. º 10/18, 26 June 2018. In the meantime, Presidential Decree n. º 250/18, 30 October, has been published, which approves the Regulation of Legal Investment Procedures for investments completed under the Private Investment Law.

INVESTING IN ANGOLAPRIVATE INVESTMENT LAW

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• Allocation of own funds

• Application of existing funds in bank accounts constituted in the country, held by residents (for the Foreign

Exchange Law purposes), even if resulting from financing obtained abroad

• Allocation of machinery, equipment, accessories and other tangible fixed assets

• Incorporation of credits and other assets of the investor

• Incorporation of technologies and know-how susceptible to monetary valuation

• Application of funds, in national territory, in the scope of reinvestment

FORMS OF INTERNAL INVESTMENT

• Education, Technical and Professional Training, Higher Education, Scientific Research and Innovation

• Agriculture, Food and Agroindustry

• Specialized Health Units and Services

• Reforestation, Industrial Transformation of Forest Resources and Silviculture

• Textile, Clothing and Footwear Industry

• Hotel, Tourism and Leisure

• Construction, Public Works, Telecommunications and Information Technologies, Airport and Railway

Infrastructures

• Production and Distribution of Electrical Energy

• Basic Sanitation, Collection and Treatment of Solid Waste

PRIORITY SECTORS OF ACTIVITY

Scope of application The Private Investment Law applies to investments of any amount made by internal investors or by external investors.

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Shareholders loans made for external investment purposes may not exceed 30% of the investment value and are only refundable after 3 years from the date of registration in the company’s accounts.

In addition to the investment operations already foreseen in previous legislation (incorporation of commercial companies, acquisition of shareholdings, celebration of consortia, exploitation of real estate ventures, etc.), it is now contemplated the conversion of credits arising from the execution of supply agreements (machinery, equipment and goods).

SHAREHOLDERS LOANS

INVESTMENT OPERATIONS

Private investors can access internal and external credit. External investors and companies majority-owned by them are only eligible for domestic credit after having fully implemented their investment projects.

Whenever the internal or external investor intends to carry out operations classified as indirect investment, they shall not exceed 50% of the global investment value.

ACCESS TO CREDIT

INDIRECT INVESTMENT

• Transfer of own funds from abroad

• Application of funds, in national and foreign currency, in bank accounts opened in Angola by non-residents

(for the Foreign Exchange Law purposes), subject to repatriation, in accordance with applicable exchange

legislation

• Application of funds, in Angola, in the scope of reinvestment

• Transfer of machinery, equipment, accessories and other tangible fixed assets

• Incorporation of technologies and know-how

FORMS OF EXTERNAL INVESTMENT

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The registration of private investment in the form of imports of new or used machinery, equipment and components, is made by its FOB value in foreign currency and its countervalue in national currency at the reference exchange rate of the National Bank of Angola.

The private investor must promote the employment of Angolan workers by providing them with the necessary professional training and salary and social conditions compatible with their qualification. The training plan and the plan for gradual replacement of foreign workforce by nationals should be part of the Investment Project documentation at the time of registration.

The value of the machines and equipment is subject to proof by means of a suitable document issued at the origin by a certified asset valuation entity.

EQUIPMENT REGISTRATION VALUE

WORKFORCE

VALUE OF MACHINES AND EQUIPMENT

Dividends – Liquidation proceeds – Compensations/Indemnities - Royalties or other incomes related to indirect investment, associated with the transfer of technology

EXTERNAL TRANSFERS

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The investor may freely opt for any of the regimes

INVESTMENT REGIMES

DEVELOPMENT ZONES

It applies to private investments in priority sectors and in development areas. These investments are subject to registration with the competent body with a view to granting benefits and facilities.

Zone C: Provinces of Cuando of Cubango, Cunene, of Lunda-Norte, of Lunda-Sul, of Malanje, of Moxico, of Uíge and Zaire;

Zone D: Province of Cabinda.

SPECIAL REGIME

This regime presupposes the simple presentation of the investment proposal to the competent body for registration and allocation of benefits. The companies must be previously incorporated and the presentation of the Private Investment Registration Certificate for incorporation procedures is now dismissed.

Zone A: Province of Luanda, the capital-municipalities of the Provinces of Benguela, Huíla, Cabinda and the Municipality of Lobito;

Zone B: Provinces of Bié, of Bengo, of Kwanza Norte, of Kwanza Sul, of Huambo, Namibe and remaining municipalities of the Provinces of Benguela and Huíla;

PRIOR DECLARATION REGIME

A

B

C

D

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Prior Declaration RegimeReal Estate Transfer Tax: tax rate reduction by

half (for acquisition of offices and investment

establishments)

Industrial Tax: reduction of the final settlement

rate and the provisional settlement rate by 20% for

a 2 years period

Capital Gains Tax: reduction of the tax rate over

profits and dividends by 25% for a 2 years period

Stamp duty Tax: tax rate reduction by half for a 2

years period

Special Regime

Real Estate Transfer Tax (for the acquisition of

offices and investment establishments)

Zone A: rate reduction by half

Zone B: rate reduction by 75%

Zone C: rate reduction by 85%

Zone D: half of the rate assigned to Zone C

Urban Property Tax

Zone B: rate reduction by 50%, for the ownership of

real estate aimed at offices and to the establishment

of the investment, for a 4 years period

Zone C: rate reduction by 75%, for the ownership of

real estate aimed at offices and to the establishment

of the investment, for an 8 years period

Zone D: Urban Property Tax Rate corresponds to

half the rate assigned to Zone C, for an 8 years

period

Industrial Tax

Zone A: reduction of the final settlement rate and

the provisional settlement rate by 20% for a 2 years

period

Zone B: : reduction of the final settlement rate

and the provisional settlement rate by 60%, for a

period of 4 (four) years; Increase in depreciation

and reintegration rates by 50%, for a 4 years period

Zone C: rate reduction by 80%, for an 8 years

period 8

Zone D: the Industrial Tax rate corresponds to half

the rate assigned to Zone C, for an 8 years period;

Increase in depreciation and reintegration rates by

50%, for an 8 years period

Capital Gains Tax (taxation of dividends and

profits)

Zone A: rate reduction by 25% for a 2 years period

Zone B: rate reduction by 60% for a 4 years period

Zone C: rate reduction by 80%, for an 8 years

period 8

Zone D: The Capital Gains Tax rate corresponds to

half the rate to Zone C, for an 8 years period

BENEFITS AND FACILITIES FOR INVESTMENT IN ANGOLA

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SIGIP is an online electronic platform from which the investor can submit the necessary documentation for the registration of the investment.

The approval of the request consists of the delivery of CRIP by the AIPEX services.

INTEGRATED PRIVATE INVESTMENT MANAGEMENT SYSTEM

PRIVATE INVESTMENT REGISTRATION CERTIFICATE

AIPEX is the body in charge of the promotion, processing of legal registration, monitoring and inspection of investments.

Upon receipt of the application for registration of the investment project, AIPEX has 5 (five) business days to communicate a decision.

INVESTMENT AND EXPORT PROMOTION AGENCY

PRIVATE LEGAL INVESTMENT PROCEDURESPRESIDENTIAL DECREE N. º 250/18

DEADLINES

The private investment company established under the Special Regime is exempt from payment of fees and charges due to public entities for any requested service, including customs, for a period not exceeding 5 (five) years.Tax benefits are automatically granted to CRIP holders without any additional administrative procedure

OTHER BENEFITS AND FACILITIES

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It is foreseen the rendering of support services by AIPEX to projects registered under the special regime: legal, tax and social security records; registration of intellectual property and real estate; obtaining of activity licenses, building permits, environmental licenses and others; contracting of energy and water services; obtaining visas; other records.

SUPPORT SERVICES

External investors and mixed commercial companies with the first investment project in progress are not eligible for internal credit. Ineligibility is reported by the BNA in the BNA Information and Credit Risk Center, in conjunction with AIPEX.

The investment vehicle company prepares and sends to AIPEX, by electronic means, quarterly reports on the development of the implementation phase of the project.

ACCESS TO INTERNAL CREDIT

INSPECTION AND MONITORING

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For more information contact us:

Bruno Esteves de Magalhã[email protected]

+ 351 916 810 717+ 244 948 492 614

Rua Bernardo Lima, 31150-074 Lisboa| Portugal

Presidente Business Center, Sala 305,Largo 17 de Setembro, Luanda | Angola

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investing in angola in focus/rsa... · 1 private investment law investing in angola the new regime...

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