source (universal taxation). On the other hand, companies without registered office, effective management or a permanent establishment in Angola but rendering services to Angola (foreign companies) are only subject to CIT regarding such services. For Angolan-based companies the applicable tax rate is 30% on the annual net income. Provision of most services is also subject to withholding tax at a tax rate of 6,5% to be settled as the invoice is paid. Sale of goods is also subject to provisory taxation, which is levied on the first semester sales, being taxed at a tax rate of 2%. Both withholding tax and provisory taxation on sales are deductible to the final annual tax. Most services rendered by foreign companies to Angola are subject to withholding tax of 6,5%. Sales made by foreign companies to Angola are not subject to taxation under CIT. Capital Gains Tax Capital Gains Tax ( CGT ) is levied on capital gains earned in Angola, either by tax residents and non-tax residents. Capital gains include earnings with interest, dividends, premiums, royalties, gambling prizes, among others. The tax rates vary between 5% and 15% of the income earned, depending on the type of capital gains. Consumption Tax In the absence of Value Added Tax ( VAT ), Consumption Tax ( CT ) is levied on the provision of the services expressly subject to it, being subject to a tax rate of either 5% or 10% (only applicable to hotel business and similar – includes the restaurant business). CT is also due for production and import of goods, with the applicable tax rates varying between 2% and 30%. Property Tax Owning urban real estate in Angola property is subject to Property Tax.
Urban real estate subject to lease agreements is subject to a tax rate of 15% on the amount of rent to be paid by the tenant to the landlord. For rents paid by companies or individuals with organized accounts, tenants should withhold the tax due. This withholding obligation does exist for the remaining individuals, being the landlord due to burden all tax obligations. Urban real estate not covered by any lease agreement is also subject to Property Tax, which is levied on the patrimonial value of the real estate. A tax rate of 0,5% is applicable to the patrimonial value exceeding AOA 5.000.000,00. Dispute Resolution Court Litigation The Angolan judicial system comprises municipal and provincial courts and a Supreme Court which deals with appeals from the lower courts. The Constitutional Court was established in 2008, and the constitutional matters over which this Court has jurisdiction are set out in the 1992 Constitutional Law. Arbitration On 6 March 2017, Angola became a party to the New York Convention 1958 on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), which means that foreign arbitration awards are nowmore easily enforceable in this jurisdiction. In addition, the Voluntary Arbitration Law has been in force in Angola since 2003 (Law 16/03, approved on 25th of July), providing for domestic arbitration in the country supervised by an arbitral institution and, under specific circumstances, international arbitration. Under the new investment regime, the NPIL allows parties to an investment agreement to agree that any dispute regarding interpretation and enforcement may be settled by means of arbitration.
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