Angola expects to raise 2 billion ME in year of implementation of single income tax

The Angolan state expects to raise 2 billion kwanzas (2.1 billion euros) in the year of implementation of the Single Tax on Corporate Income (IRPC), a law that unifies all income taxation in Angola.
The IRPC, in public consultation from today until January 31, 2024, repeals the Industrial Tax Code, the Capital Investment Tax Code, provisions of the Stamp Duty Code, article 18 of the Property Tax Code and other legislation.
With the introduction of the IRPC, it is estimated that 2.077 billion kwanzas will be collected in its year of implementation.
According to the Angolan General Tax Administration (AGT), the body overseeing the public consultation, of this estimate, income from commercial, industrial, extractive (except oil and gas) and service activities (except income from capital) will account for most of the collection, with around 86.5% of it.
Tax from property income is expected to account for only 3.8% of revenue and tax from capital income will account for 9.7% of revenue, says the decree.
“The revenue estimates presented above will account for 59% of non-oil revenue. In addition, it also represents 5% of the non-oil Gross Domestic Product (GDP),” the document reads.
According to the Angolan authorities, in the report justifying the IRPC proposal, the Angolan tax system is also characterized by a multiplicity of reporting obligations, different deadlines and different payments.
He argues that the articulation of current taxes is “complex, generating countless doubts among taxpayers, which in a way affects compliance with tax obligations and the business environment”.
Thus, it justifies the need to implement a “simpler, more modern and unitary income tax system, characterized by a reduction in technical complexity and the unification of declaratory procedures”, which will culminate in the unification of all corporate income taxation into a single tax.

About Geraldine Boechat 2764 Articles
Senior Editor for Medafrica Times and former journalist for Swiss National Television. former NGO team leader in Burundi and Somalia