imageAngola | Presidential Decree No. 207/15, of 5 November 2015

Tax regime of depreciation and amortization of fixed assets

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Presidential Decree No. 207/15 of 5 November 2015 The approval of the Corporate Income Tax Code, in accordance with the Executive Guidelines for the Tax Reform, operated under Law No. 19/14, of 22 October 2014, aims to respond to the need for modernization and adequacy of its regime facing the socio-economic reality of the country, as well as to define a new paradigm for the legal and tax treatment of the income of commercial companies and similar legal entities, arising from the practice of economic activities; The current legal framework on write-offs and amortizations of fixed assets, was approved in the 1970s and refers to repealed legal statutes, considering that those represent tax purpose costs during the fiscal year and aim to record the loss in value of the fixed asset, in order to distribute the cost of an asset over the fiscal years in which it is operating; Facing the need to update the regulatory framework and complement the Corporate Income Tax Code, in regards to the write-offs and amortizations of fixed assets, in order to adapt it to the current economic and social context of the Country and place it against the legal framework in force; 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, decrees the following: ARTICLE 1 (Scope) This Statute sets forth the regime of write-offs and amortizations applicable to the fixed assets of all companies and entities subject to Corporate Income Tax, even if exempt from it, under the terms of paragraph 1 of article 24 and article 42 of Corporate Income Tax Code.