imageAngola | Presidential Decree No. 343/19, of 21 November 2019

VAT settlement and payment regime applicable to the LNG project

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Presidential Decree No. 343/19 of 21 November 2019 The current tax reform in the Country aims, amongst others things, to provide a modern tax system that is effective and capable of meeting the challenges of socio-economic development, as well as improve the tax revenue collection model, avoiding tax fraud and evasion; Given the specificities of the Oil Sector, characterized by the fact that it is a capital-intensive sector, a differentiated VAT regime has been adopted for Oil Investment Companies operating in concessions areas, based on the classification of research, development, production and abandonment costs, thus ensuring and safeguarding the stability and economic viability of investments; Considering that the VAT assessment and payment regime, namely in the scope of the Companies of the Angola LNG Project, the application of the general rules of the VAT Code, approved by Law No. 7/19, of 24 April 2019, or even of the specific rules in this Code, applicable to Oil Investment Companies, requires that the assessment and payment regime for Companies of the Angola LNG Project be extended, in regards to the services provided for in articles 24 and 25 of the VAT Code it concerns; Based on the provisions of paragraph 5 of article 25 of Law No. 7/19, of 24 April 2019 on the VAT Regime applicable to Oil Investment Companies without any contractual relationship with the State Concessionaire, but subject to the special regime for the taxation of petroleum activities; The President of the Republic, in accordance with subparagraph 1) of Article 120 and paragraph 3 of article 125, both of the Constitution of the Republic of Angola, hereby decrees the following: VALUE ADDED TAX ASSESSMENT AND PAYMENT REGIME APPLICABLE TO THE ANGOLA LNG PROJECT