Angola: Tax benefits for production-related investments made from reserves

Tax benefits for reserve reinvestments in Angola

Angola’s tax law provides a tax benefit with respect to investments made out of reserves in new production-related facilities or equipment. If certain investments are made in assets used in production activities, the tax burden can be reduced by up to one-half of the amount of the investment.

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The amount of undistributed earnings for a three-year period (2013 to 2015) invested in new facilities and equipment used in production and related activities of enterprises can provide a deduction for “industrial tax” (imposto industrial) purposes of up to 50% of the amount of the investment.

To take advantage of this benefit, companies must file an application with the tax authority, and in that application, state the amount of undistributed earnings that was reinvested in eligible assets for the years 2013 to 2015. If granted, taxpayers are eligible to claim a deduction for the three years (e.g., 2016, 2017, 2018) immediately following the investment period.

Applications are due by the end of February 2016.

 

Read a December 2015 report (Portuguese) prepared by the KPMG member firm in Portugal: Benefício fiscal ao investimento de reservas voluntárias 

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