In 2023, with the conflict involving Russian Federation and Ukraine, the global economy has been volatile, and several countries have been facing economic difficulties, inter alia, inflation especially in Europe and in the USA.
In this regard, Angola is not an exception, as there have been significant social and economic impacts in the Angolan economy landscape (despite the hike on oil barrel prices [USD 90] higher than the USD 75 initially predicted by the Angolan Government in the State Budget for 2023), namely, the local currency depreciation (the Kwanza is one of the worst performing African currencies this year), inflation pressure (which was also driven higher by a Government decision of lowering the fuel subsidy, which has led to a steep increase in gasoline prices) and the escalation of the cost of living, in particular, in the acquisition of foodstuffs.
As a result, the Angolan Government through the Council of Ministers has announced earlier this year in July, a package of measures that aim to ease the cost of living and boost the economy.
The tax relief measures, include the following:
Nonetheless, despite the announcement by the Angolan Government, these measures are still under discussion and approval of the Parliament and further publication in the Angolan Official Gazette is required.
Additionally, with regard to tax measures, the Angolan Tax Authorities have announced that the taxpayers may benefit from a reduction of interest and penalties (30% and 50% respectively) if they regularize pending tax debts until 31 December 2023, benefiting from the regime already set forth under the General Tax Code.
If you wish to discuss these topics, please contact:
VdA Legal Partners, Portugal
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