Investment benefits in Angola -
FOREIGN INVESTMENT OPERATIONS
Considering in terms of law of 15/94, foreign investment operations, namely the following acts and contracts, even though not directly associated with capital operations:
Formation, application and acquisition in such a way to get the social representation of foreign and new enterprises;
Participation or acquiring the participation of enterprises in capital investment or grouping of enterprises;
Creation or alteration of contracts of partnership and the association of third parties towards investment funds;
Taking into account the establishment of commerce and industry for acquisition of active assets or through the contracts of exploration;
Taking into account the agricultural enterprises with the help of leasing land or any other agreement, which involves the right of possession and exploration on the part of the investor;
Exploration of immovable property complexes;
Realisation of supplementary lending of capital for the process of working partners or whichever business venture connected with the participation of profit;
Acquisition of the immovable land estates situated inside the national territory of the foreign investment projects;
The referred law of 15/94 determines that the investment operations of the value below 250.000 American dollars are not operations of foreign investment and do not enjoy the benefit of statue and property rights of this Government, which are subjected to exchange and commercial laws in force.
The Foreign Investment Operations can be achieved , isolated or accumulated through:
Transference of Foreign Funds;
Application of availability of funds in bank accounts of foreign currency ;
To import credit and other disponibilities which can be accessible for transferring to foreign countries;
To import equipment, accessories and other materials;
Incorporation of technology.
RIGHTS AND GUARANTEES OF THE INVESTOR
The firms constituted are protected by the law of Foreign Investment, have all the legal effects, they have the statue right of Angolan firms; which are applicable to the common Angolan law, a specific legislation will be formed for those firms which are not regulated directly by the above referred law.
The State of Angola makes sure that the treatment is just, without discrimination and equal for every enterprise constituted and the imports are protected by the present law, and they give the guarantee of protection and security without any difficulties in the business of maintenance and exploration.
The foreign investor is guaranteed property rights namely the right of transferring funds to foreign countries in terms of exchange legislation.
The dividends or the distribution of interest with the deduction of legal mortgage and rights of statue, taxes, takes into account the respective participation of the capital of the firms.
The result of liquidation of investment, including more credit, after paying the legal taxes.
It is still present in the law, it is just, effective and prompt, a fair compensation in case of expropriation or nationalisation of the means of investment for the interest of the state, this amount is determined according to the international laws.
The firms constituted in the circuit of the law of foreign investment, have the same fiscal benefit as the Angolan firms.
The foreign promoter has finally the right to request for the internal and external financing for his investments, the recourse to external credit needs the licence of authorisation from the Finance and Economy Ministry and from the Central Bank.
Considering the internal credit, it is not necessary for permission for authorisation, we need to comply only with legal norms on this matter.
Additional benefits are still included for the investor who develops relevant actions of social work or promotes formation courses in favour of local jobs.
FISCAL REGIME OF FOREIGN INVESTMENT
The enterprises which are framed in the Law of Foreign Investment are subjected to the national fiscal rules, will benefit like other national enterprises, have recourse to internal and external credit, after authorisation from the financial authorities and the Central Bank.
Also are anticipated other incentives after the projects of investment are locally invested and provincially determined and which employ a certain percentage of professionals and Angolan workers and also develop relevant action of social work or promotes formation courses in favour of local jobs. At the same time they will benefit from tax exemptions in certain specific cases.
The tax dues of the enterprises that function through the Foreign investment decree, are basically:
The Industrial tax: takes into account only profits of activities of Commercial and Industrial nature (industrial Tax Code) being a tax of 40% on income higher than KZR 10.000.000.00
Stamp duty: Stamp duty is determined on the basis of invoices produced between 1 % to 10% over sale transactions or over bank interest.
Capital Taxes: Takes into account profits or dividends, being your tax of 5%
OBLIGATIONS OF THE INVESTOR
The following are the obligations of the investor:
a) To respect the legislation in force, as well as contract engagements, should give the competent authorities ail the information solicited;
b) To promote formation courses in favour of local jobs and for this objective he can get incentives and benefits of tax exemption.
c) To respect the norms relative to environmental protection, hygiene, protection and security of the workers against professional sicknesses, accidents in the work place and other eventualities anticipated in the legislation of social security.
d) To fulfil and maintain insurance against accidents and professional sicknesses of the workers, also civil responsibility.
e) To apply accounting plans and the rules of accounting established in the country.
f) To have as priority accounts of national and foreign exchange in Banks domiciled in the country, through which all payments should take place, internal and external.
g) To discharge the fiscal legislation in force.