Property tax rate reduces 50% with Benefits Code

Luanda – The new Tax Benefits Code (CBF) reduces by 50% the Property Tax (IP) rate on the transfer and ownership of real estate, as well as on rents earned within a maximum period of two years, constituting one of the innovations for this diploma, in force since 14 May 2022.

The fact was announced this Thursday, in Luanda, by the finance technician of the Deloitte company, Luísa Gomes, during the conference on Tax Benefits Code.

 

Talking to the press the representative stated also that for the first time the code will promote savings and professional management of the assets throughout the investment that the companies might apply in the real estate sector.

 

Luísa Gomes advanced that for individual persons the diploma allows the citizens to make their savings by depositing part of the revenues in the pension fund or in the bank account aiming to ensure decent retirement for workers.

 

The technician stressed also that with the entry into force of this code the companies have the possibility to capitalize on the benefits and to get justified tax savings in areas that allow wealth creation and improving the citizens’ living condition.

 

On the other hand, the executive director of the Agency for Private Investment and Exports Promotion (AIPEX), Neide dos Santos appointed out the appearance of Tax Credit, the deduction of up to 80% of the public expenses as the main novelties of the CBF in issues related to the investment.

 

The official considered the CBF one of the extremely important instruments for the attraction of investment in the country by  making competitive the Angolan tax activity, despite the document also contemplating the deferral of tax payment.

  

On his turn, the Deloitte tax area technician, Renato Carreira, considers that the diploma has advantages to gather in only one diploma a set of tax benefits and laws that were scattered over time.

 

Renato Carreira proceeded saying that the CBF brings clarity and facilities to investors as well as it allows the General Tax Administration (AGT) to have better control of the business company despite improving the benefits that already existed in the previous diplomas.  

 

According to Renato Carreira these benefits are also to promote job creation and improve the environmental activity throughout the use of renewable energies by reducing the country´s pollution levels.

 

In addition to this, it is also included in this code of benefits, that essentially aims to attract new foreign investments, capitalization of small, medium and big companies as well as the development of the finance sector and the capital market.

 

Published in the State Gazette nº 8/22, of 14 April, which approves the Tax Benefits Code, the new legal tool came into force on 14 May 2022, with the objective to overcome some gaps in the previous diplomas.