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Economy update from Angola

Presidential Decree 40/16, of 24 February – approves the General Terms of the Strategy against the Crises Deriving from the Fall in the Oil Price in the International Market, consisting of measures to be implemented by the State, among which the following may be noted:

1. Private investment and increase of domestic production 

The State is compromised to capture more foreign investment by entering into Agreements on Mutual Promotion of Investments and Agreements to Avoid Double Taxation, as well as to facilitate the visas procedure and to promote partnerships between foreign and local investors.
Directed Programs of private investments, with the aim to increase the domestic production and short-term exports, will be implemented. Mechanisms to promote exports, such as credit lines and export credit insurances, will also be implemented.

The following products were identified as having potential for short-term exports: diamonds, ornamental rocks, cement / building materials, coffee, honey, fishery products and derivatives, wood, iron ore, alcoholic and non-alcoholic beverages, legumes, vegetables and tubers, iodized salt and services (transport, tourism and telecommunications).

The following were also identified as priority sectors: agriculture and forestry, food industry, manufacturing (cement, glass, plastics and building materials) and services (such as insurance and reinsurance).

Projects on renewable energy sources and logistic platforms are also proposed to be developed.

2. Increase of non-oil tax revenues 

The withholding of several taxes under the Integrated System for State Financial Management (“SIGFE”) is proposed. Furthermore, the Program for Maximization of Tax Revenues for 2016 (“PPRT”) defines 25 priority measures, such as: supervision of non-oil taxes by oil companies, oversight of tax payments by the key companies in the market, recovery of tax and customs debts, collection of capital applications tax (IAC) by BNA, collection of taxes withheld by public entities, liens over credits and movable and immovable property, review of the minimum profits table of personal income tax (“IRT”), promotion of electronic communication and combat against the informality, notably by promoting awareness campaigns regarding tax obligations.

3. Foreign exchange and monetary political
The granting of credit to the productive sector will be deemed as priority. BNA will then adopt flexible measures on currency political, by interspersing moments of expansion with times of contraction. Special attention to commercial banks with liquidity problems will be given.

4. Rationalization of imports
The intention is to discourage the importation of everyday consumer goods, namely by the adoption of tax measures.

5. Increase of the price of fuel
Fuel prices will continue to increase, with the aim to approach them to the values practiced by the international markets.

Banking and Tax
Presidential Decree 1/16, of 24 February – approves the Legal Framework of the Special Contribution over Banking Operations to remains in force during 2016. This Presidential Decree will however enter into force on 24 May, 90 days after its publication.

This special contribution, with a tax rate of 0,1% over the value of the banking operation,applies to the following operations: debt movements on deposit accounts, loans, savings and escrow accounts; credit movements on bank accounts; payments by the bank of any amounts on behalf of third parties and any other movements or transmission of values. Financial institutions (banking or non-banking) are the taxable persons, but the tax is supported by the account holder.

Financial institutions not complying with such payments obligations are subject, inter alia, to the application of fines with an amount up to the triple of the due contribution.

 

The content of this newsletter is general and abstract neither does it seeks to provide legal assistance directed to the particular case. FBL Advogados is pleased to assist any interested party regarding the terms and impact of these new laws and its team is duly prepared to provide legal assistance, by proposing solutions and recommendations. For more information, please contact:
Guiomar Lopes
guiomar.lopes@fbladvogados.com

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