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Angola

Why Angola?

Angola is a nation with a rich cultural history and a wealth of natural resources. It is situated on the west coast of Africa. It is one of the largest countries in sub-Saharan Africa. Angola presents significant opportunities for businesses looking to expand into African markets due to its young and expanding population of over 35,664,539. Angola has undergone significant economic and social reforms in recent years with the goals of broadening the economy, enhancing the business climate, and luring foreign investment.

More than 90% of Angola’s exports are crude oil, making it one of the world’s major oil producers. Besides fish, coffee and diamonds are important exports. Businesses can identify potential opportunities and market challenges by understanding Angola’s trade statistics.

Advantages

Angola is a nation in southern Africa that has recently undergone a rapid transformation of its business environment and economy. There are many benefits for companies looking to invest or operate in Angola as a result of the nation’s significant progress in enhancing its business climate and luring foreign investment.

Government support:

To enhance the business climate and draw in foreign investment, the Angolan government has implemented a number of reforms. This includes steps to make it easier to start a business, to increase credit availability, and to offer tax breaks to investors.

Growing economy:

With a GDP growth rate of 3.30 percent in 2023, Angola will have one of the fastest-growing economies in Africa. The government’s initiatives to diversify the economy and draw in foreign investment are expected to fuel this growth in the upcoming years.

Rich natural resources:

Oil and diamonds, which make up a sizable portion of Angola’s exports, are among the country’s abundant natural resources. Additionally, the nation has sizable deposits of gold, iron ore, and other minerals, offering potential opportunities for businesses in the extractive industries.

Strategic location:

Algeria is strategically located, making it a desirable hub for companies looking to expand into North Africa and beyond. The nation has access to important trade routes and shipping lanes due to its location between Europe, Africa, and the Middle East.

Strong regional integration:

The African Union (AU) and the Southern African Development Community (SADC) are two regional associations in which Angola participates. Businesses can take advantage of these opportunities to access regional markets and gain from efforts to integrate the region.

Simple Tax Regime

Corporate tax:

Profits from business operations conducted in Angola by resident entities or non-resident entities with a permanent establishment (PE), as defined by Angolan domestic law, are subject to corporate income tax (CIT).

Revenues from the corporate tax rate are an important source of income for the government of Angola.

The standard rate of corporate income tax (CIT) is:

25% on the profits deriving from business activities carried out by resident entities.

The taxable profit is then multiplied by the CIT rate to determine the amount of tax payable.

The tax is payable annually, and the tax year runs from 1 January to 31 December.

Personal income tax:

Individuals in Angola must pay a tax on their personal income (PIT). Both residents and non-residents who receive income in Angola are subject to PIT. Employment income, business profits, and other sources of income are all considered sources of income subject to PIT.

Personal income taxation is applied with progressive scale rates (marginal rate of 35%).

Income (AOA)

  • Up to 70,000 – Exempt.
  • Between 70,001 and 100,000 – 3,000 + 10% upon the excess of 70,000
  • Between 150,001 and 200,000 – 12,500 + 16% upon the excess of 150,000
  • Between 200,001 and 300,000 – 31,250 + 18% upon the excess of 200,000
  • Between 300,001 and 500,000 – 49,250 + 19% upon the excess of 300,000
  • Between 500,001 and 1,000,000 – 87,250 + 20% upon the excess of 500,000
  • Between 1,000,001 and 1,500,000 – 187,250 + 21% upon the excess of 1,000,000
  • Between 2,000,001 and 2,500,000 – 402,250 + 23% upon the excess of 2,000,000
  • Between 5,000,001 and 10,000,000 – 1,117,250 + 24.5% upon the excess of 5,000,000
  • More than 10,000,001 – 2,342,250 + 25% upon the excess of 10,000,000

Angola Companies

Sole proprietorship:

A sole proprietorship is a type of company that is owned and operated by a single individual. The owner is fully responsible for all aspects of the business, including any debts or legal liabilities that may arise.

Limited partnership

Angola has a specific type of business entity known as a limited partnership (LP), which is owned by two or more partners and has at least one general partner and one limited partner.

While the limited partner’s liability is capped at the amount of their capital investment into the business, the general partner’s personal liability for the debts and obligations of the company is unlimited.

Limited liability company

A Limited Liability Company (LLC) is a type of company in which the owners are not personally liable for the company’s debts or legal obligations. The LLC is considered a separate legal entity from its owners, and the liability of the owners is limited to the amount of their investment in the company.

Foreign business entities

A foreign entity is a legal person formed under the laws of a foreign country and having a place of business in Algeria. Mainly, there are three types of foreign business entities in Algeria:

  1. Representative office
  2. Branch office
  3. Subsidiary

Angola is a nation with a rich cultural history and a wealth of natural resources. It is situated on the west coast of Africa. It is one of the largest countries in sub-Saharan Africa. Angola presents significant opportunities for businesses looking to expand into African markets due to its young and expanding population of over 35,664,539

Author: Chandrawat & Partners

Topic: Doing Business in Angola

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