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.
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.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.