imageAngola | Presidential Legislative Decree No. 3-A/14, of 21 October 2014

Consumption Tax Regulation - 2014

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Presidential Legislative Decree no. 3-A/14 of 21 October 2014 As part of the ongoing Executive Project for the Tax Reform in the Country, and in harmony with the objectives defined by the Executive’s Guidelines for the Tax Reform, as well as with the experience in implementing the legislative changes undertaken, with a view to adapting the legislation to the new economic and social reality of the Country, tax practice and experiences show the need to make some adjustments at the legislative level of the Consumption Tax; Considering that the present revision and consequent republication of the Consumption Tax Regulation aims to improve some aspects of this regime, namely a greater clarification regarding the taxable person, the obligations of assessment and payment, as well as the correct identification of the responsible for tax charge through a legal repercussion system; Given that the Legal Framework of the Consumption Tax does not provide exemptions of subjective nature, and that the oil companies, although subject to a special taxation regime, are not excluded or exempt from paying the consumption tax whenever they contract services to third parties subject to Consumption Tax. Taking into account the specificities of the oil industry, since this is an intensive capital sector, the review carried out opted for the adoption of a differentiated regime of taxation on Consumption Tax for Entities (oil companies and other equivalent companies) to carry out petroleum operations in concession areas under exploration or development, in order to guarantee and safeguard the stability and economic viability of investments at that stage; If there is a need to establish greater control of the tax revenue corresponding to the Consumption Tax paid by the oil companies, and in order to ensure that this cost is deductible for the purpose of taxable income assessment on income taxes, it is necessary to approve a special method for the delivery of the Consumption Tax paid by these companies. The President of the Republic decrees, in the use of the legislative authorization granted by the National Assembly, under article 1 of Law no. 12/14, of 30 July of 2014, and in accordance with paragraph 1 of article 102, paragraph 1 of article 125 and subparagraph 1 (o) of article 165, all from the Constitution of the Republic of Angola, the following: