Africa-Press – Angola. On 30 April, the General Tax Administration (AGT) issued a Circular, through which it authorises the payment of Industrial Tax by tax offset, via Non-Approved Withdrawal Orders. In an interview, the Chairman of AGT, José Leiria, believes that this measure will have a positive impact on companies with pending Withdrawal Orders that decide to join the mechanism, taking into account that they will have better liquidity conditions, since by using the pending Withdrawal Orders to pay Industrial Tax, they will be able to use the amounts that would otherwise be allocated to this purpose to make investments.
This is a procedure defined in conjunction with the National Treasury Directorate, which aims to make it easier for taxpayers holding Non-Approved Withdrawal Orders to settle their Industrial Tax debt for the 2024 financial year.
“Essentially, what will happen is the offsetting of these taxpayers’ debt through the use of the credit they have from the State, provided that this is duly supported by Non-Approved Withdrawal Orders, and they will be exempted from having to resort to their treasury to pay the Industrial Tax for the 2024 fiscal year,” he said.The manager said that this is only for Non-Approved Withdrawal Orders, since other non-tax credits that taxpayers hold with the State, to be used to settle tax debts through the Compensation Institute, follow a specific procedure under the supervision of the Public Debt Management Unit, culminating in the signing of an agreement to settle arrears.
“In these cases, the agreement itself defines the criteria for settling the State’s debt, and this mechanism is not included in the Circular because it follows its own ritual,” he stated.
The measure will have a positive impact on companies with pending Withdrawal Orders that decide to join the mechanism, considering that they will have better liquidity conditions, since by using the pending Withdrawal Orders to pay Industrial Tax, they will be able to use the amounts that would otherwise be allocated to this to make investments, which will generate added value for their activity.
The State, in turn, will reduce the volume of the “Stock” of arrears. In this way, the amounts that should be used to pay these Withdrawal Orders can be used to cover other expenses.“Industrial Tax is charged based on turnover and not on cash received. Therefore, there could be cases in which the company’s Accounting Department records profits and, consequently, Industrial Tax to be paid to the State, but in return, it does not have the liquidity due to the existence of non-approved Withdrawal Orders. This measure will resolve this imbroglio”, he said.
For More News And Analysis About Angola Follow Africa-Press
