The law—Lei n.º 14/15, de 11 de Agosto, Lei do Investimento Privado—replaces prior law from 2011, but it does not apply to investment projects approved before the new law’s enactment in August 2015. Those earlier investment projects are governed by the provisions of the prior legislation and the terms of the specific contracts, the basis of which the authorization was granted.
The tax incentives include relief from the industrial tax (Impostos Industrial, de Sisa) and the tax on capital gains / capital appreciation (Imposto sobre a Aplicação de Capitais) over a period of years based on certain percentages.
Under the new law, private investment projects include foreign investment operations and certain domestic investments that meet a minimum threshold amount, assuming the investment project is approved. The tax incentives generally are available for investments that satisfy a threshold investment amount equal to U.S. $50 million and that result in the creation of jobs for Angolan nationals in identified zones (either 500 or 200 workers depending on the location).
The new measures also reflect a change to who is eligible for the private investment incentives. As well, under the new law, provisions require that a “partnership” be established between foreign investors and Angolan citizens or companies, when the investments are made in certain industry sectors (electricity and water supply, hospitality and tourism, transport and logistics, construction, telecommunications and information technology, and social media). The Angolan partners are to share in the management as well as have a stake in ownership.
The new law includes other measures on free trade zones, supplies used for the investment, rules for indirect investments, rules for repatriation of profits and dividends aimed to encourage reinvestment.
Read an August 2015 report (Portuguese) prepared by the KPMG member firm in Portugal: Nova Lei do Investimento Privado
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