Africa-Press – Angola. The Tax Benefits Code, in force since 14 May, provides for a special tax regime applicable to Pension Funds, in addition to a 14 percent reduction in the Industrial Tax rate and a 50 percent discount in the Property Tax rate on transfer and ownership of real estate and rents earned within a maximum period of two years.
Published by Law 8/22, of 14 April, the code also establishes the exemption from the Capital Investment Tax (IAC) earned by pension funds, in the context of tax benefits for the Financial System and Capital Markets, as well as cuts the IAC rate by 50 percent for income paid by funds that exclusively guarantee retirement, disability or survivor benefits.
In the case of investment funds and pension funds, more favorable taxation is foreseen in terms of obtaining the properties in which the funds invest, through a 50 percent reduction in the Property Tax rate on the holding and acquisition of real estate, but also an exemption in terms of rents, earned on the leasing of premises leased by these funds.
According to Luísa Gomes, partner for Deloitte’s Financial Area, the new code provides a wide range of incentives for individuals who want to put their savings in professional management, with particular emphasis on the establishment of life insurance and bank deposits, allowing investments in the real estate sector.
The code, considers the Deloitte partner, has as its main novelty the fact that it allows the common citizen to have access to a series of benefits that were non-existent, generating in the consulting company certainty as to the relevance of private savings, by guaranteeing a complement to the reform in the future.
“We believe that the market will react to these new code that has just come into force, new products will appear accessible to all of us and, certainly, the results for the country will be favorable, as we will have an incentive to deliver our small or large savings to professional management”, he said.
He stressed that the only regime that already existed for the professional management of assets was limited to investment funds, but that the new code comes to solidify its application, by virtue of being a more favorable tax regime for pension funds.
“The legislator’s option took into account some budgetary restrictions, so that a lower ceiling was applied. We are pleased that, for the first time, there is the possibility of gradually directing our savings on a monthly or annual basis towards to have a much-needed complement to the country’s social security system,” he said.
Fast Application
Deloitte’s partner for the tax area, Renato Carreira, said that the code has the advantage of aggregating, in a single diploma, a set of tax benefits that were dispersed across several diplomas, that is, “there was a set of tax benefits, but not we had no diploma that had a systematization and aggregation”.
“The advantage of having only one diploma that aggregates and establishes the general rules for the use of tax benefits is to bring clarity to those who decide to invest, ease in the application of these benefits so that everyone can more easily know that the benefits exist and can benefit from them “, said.
Renato Carreira considered that the code guarantees better control by the AGT, by having, in a single diploma, the set of rules that govern the attribution to taxpayers of tax benefits, from those of a social nature to the benefits for attracting foreign investment that are much needed by the country.
The official attributes relevance to “benefits that aim to encourage job creation, and to attract more talent to companies and benefits in the environmental area, which are intended to encourage the use of renewable energies and, with that, contribute to a less pollution, decarbonization of the country”.
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