imageAngola | Presidential Law Decree No. 7/11, of 30 December 2011

Amendment of the Consumption Tax Regulation - 2011

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Presidential Legislative Decree No. 7/11 of 30 December 2011 The Consumption Tax Regulation, approved by Decree No. 41/99 of 10 December 1999, which is now being amended, was essentially based on the taxation of goods at the time of their entry into production or consumption processes, namely during production or import. In parallel, at the time, it was decided to exclude from taxation the consumption of any services with the exception of hotel and similar services and water and electricity providers. Thus, any other services undertaken in the Angolan market were excluded from the range of indirect taxation; Considering the purposes inherent to the ongoing Tax Reform, namely modernizing the Angolan tax system, increasing non-oil tax revenue and tax equity while providing higher quality services to the taxpayer, this revision intends to widen the range of objective tax incidence by including the provision of taxable services that until today were out of the range of said tax incidence; In addition to widening the tax’s incidence, some details were corrected regarding the concept of taxable person and his obligations. The taxable person shall not be the customer of goods or services but rather the provider or supplier of such, so any reporting obligations and payments inherent to this tax shall fall under him and not the customer. At last, in the path of tradition inherent to the taxation of consumption and attributing expressed consecration to a current practice, the possibility for the taxable person to pass the tax onto the customer of goods or services subject to tax shall be included. Without terminating any innovation, this rule supports the very relevant distinction in the area of taxation of consumption, between the person subject to tax and the person who bears the economic burden of tax; In line with the information and orientations patent in Tax Reform Guidelines, the publication of this statute does not represent the final version on the future evolution of indirect taxation in Angola, and Consumption Tax should be reviewed and updated in accordance with the new legal and economic framework. The President of the Republic decrees, in the use of the legislative authorization granted by the National Assembly, under article 1 of Law no. 35/11, of 16th of December, and in accordance with paragraph 1 of article 102, paragraph 1 of article 125 and subparagraph o) of article 165 and paragraph 4 of article 170, all from the Constitution of the Republic of Angola, the following: REVIEW OF THE CONSUMPTION TAX REGULATION