Luanda – The Government of Angola plans to implement the single tax payment on companies, within the framework of the new general guidelines for Tax Reform, the chairman of the Board of Directors of the General Tax Administration (AGT), Jose Leiria, said on Wednesday in Luanda.
José Leiria who was speaking at the III Edition of the Conference on Taxation: “Tax Reform, a decade later: Retrospective and Challenge”, promoted by the magazine “Economia & Mercado”, added that stressed that the discussions on matter is expected to begin in the third quarter of this year.
He highlighted that a reduction in the tax burden will happen by broadening the base, reducing penalties through more efficient collection mechanisms, adding artificial intelligence in the taxation system and adjusting customs legislation in the light of the best international practices, for the increase in general tax revenue.
“We are working to increasingly have a tax system that is investor-friendly, that has an easier tax collection mechanism and that can also bring relief, from the point of view of tax burden”, José Leiria said.
He highlighted that, in terms of industrial tax, the country went from a rate of 35% to 25%, 'we see that we continue to carry out analyses in the sense of having a tax that will charge, in a aggregated way, all the income of companies”.
“The Value Added Tax (VAT), implemented in 2019, had a single rate of 14%. Today we have a rate of 5% and 7% for products and equipment in the agricultural sector and the perspective is to continue working on taxes, with the aim of creating a system that best harmonizes with our reality”, he asserted.
He added that VAT is the tax that most contributes to the State's coffers, “having brought very interesting advantages, looking at revenue. We have VAT with a weight of close to 30% of total non-oil revenue”.
The III Edition of the Conference on Taxation: “Tax Reform, a decade later: Retrospective and Challenge”, promoted by “Economía & Mercado” Magazine, highlighted the Tax Reform in Angola, initiated in 2012, following Presidential Decree 50/11, of 15th of March, where the main goal is to increase non-oil tax revenues, by expanding the taxation base.
