ANGOLA
1
POLICY, PLANS AND PRIORITIES
The Plan for Sustainable Development 2009 – 2013 is the national development
plan. The overall objective is to achieve growth with diversification to fight hunger
and poverty and the reduction of poverty.
The principal objectives are:
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Priority Sectors
The following are priority sectors and the plan includes specific targets set for each
sector:
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Investment & Export
Promotion
Fighting hunger and poverty, and poverty reduction
Support economic development
Continuity of national reconstruction
Public sector modernisation
Diversification and modernisation of the economy
Modernisation and strengthening of the financial system
Acceleration of industrial development
Integrated rural development
Training of the population
Development of business class
Increasing employment and income
Improvement of living conditions of the Angolan people
Agriculture, animal breeding and forestry
Fishing
Mineral sector
Petroleum and Gas
Tourism
Commerce
Processing Industries
Civil Construction and Related Services
The investment and export promotion objectives are:
a) Increase investment, both national and international, as a mean to guarantee
the sustainability of development, national reconstruction, creation of
employment and reduction of poverty,
b) Promote internationalisation of the economy and create an export sector that is
competitive, effective and efficient.
State Reform
Programme
The Government is modernising through four reform programmes: Reform of the
Public Administration, Reform of Local Administration, Reform of the Juridical
System and the Reform of the National Statistical System.
ANIP
2
INVESTMENT PROMOTION
2.1
Institutions
The National Agency for Private Investment (ANIP = Agência Nacional para o
Investimento Privado) was established by Decree no. 44/03, 4 July 2003. ANIP is
responsible for private investment (both national and international) in Angola. It
conducts investment promotion activities in accordance with the Private Investment
Law (PIL – Law 11/03, 13 May 2003), the Tax and Customs Incentives Law (Law
17/03, 25 July 2003), and the Company Law (Law 1/04, 13 February 2004).
ANIP is solely responsible for the approval of Angolan Nationals projects of
US$50,000 to US$5 Million, and foreign investor projects of US$100,000 to US$5
million. All investments have to be registered with ANIP, even though the
competent institution for approval may be the Council of Ministers or another body.
ANIP’s responsibilities include:
 Encourage and register plans for private investments from national and
international sources according to the law;
 Apply the process for applying, licensing and carrying out private investment
including negotiating investment contracts and submitting them to the Council of
Ministers;
 Decide on all investment issues in terms of the Prior Declaration Regime and
under the framework of the New Investment Law;
 Work as a single contact point for investors by representing all administrative
entities that are involved without prejudice to its own authority.
Council of Ministers
The Council of Ministers is responsible for coordinating the governance of the
country. Projects with a value above US$5 million have to be approved by ANIP
and the Council of Minister according to the Contractual Regime (Regime
contractual). The Council also approves all projects that are subject to concession
agreements (e.g. oil production and diamond mining) as well as projects that
require public enterprise participation.
The responsibilities of the Council of Ministers are, as defined in the new Decreelaw no. 06/08, from 10 November 2008:
 Adopt the general governance of the country, coordinate and monitor its
implementation;
 Submit proposals on matters of legal interest reserved to the National Assembly
and adopt the proposed enactments on matters not within the National
Assembly;
 Adopt and submit for approval to the National Assembly the enactments in
matters of governance interest;
 Adopt the National Plan and State Budget, submit them to approval to the
National Assembly, manage and monitor its implementation;
 Approve plans and executive programs, specific programs and large-scale
projects following the implementation of the National Plan;
 Approve the acts of government involved in promoting the development of the
country and in meeting community needs;
 Consider and decide on matters of interest that have been submitted and lay in
the competence of the Government.
BNA
Banco Nacional de Angola (BNA) is the Central Bank responsible for the control of
foreign exchange and all related transactions, entitled by the Law no. 6/97 from 11
July 1997, the Banco Nacional de Angola Act.
BDA
Banco de Desinvolvimento Angolano (BDA) is the Angolan Development Bank
established by the Decree o. 37/06, from 7 June 2006. Its main functions are to
finance and mobilise financial resources for economic and social development
projects, provide technical assistance to these projects, analyse, monitor and plan
investment projects in the framework of the programme, provide and mobilise
funds to minimise the environmental impact of development programmes and
provide project management advice.
GUE
The Guiché Único de Empresas (GUE) is a One-Stop-Shop for Companies,
established by decree no. 123/03, from 23 Decembre 2003. The GUE is a public
institution that provides public service to companies by concentrating all public
processes in one location.
2.2
General
Requirements for
Incentives
Investment and Export Incentives
Generally, all investments must enable the achievement of social and economic
objectives specified in Article 22 in order to be granted any benefits under the Law.
The objectives are broad such as the stimulation of economic growth, and are not
an obstacle. The minimum requirement for investment incentives granted under the
New Investment Law (2003) are (article 23): minimum investment by national
investors with capital domiciled in the country of US$50,000, and by foreign
investors with capital domiciled abroad of US$100,000.
Investment incentives depend on the sector, the area of investment (development
zone) or if the investment occurs in a Special Economic Zone. Incentives are
defined in the Law on Incentives and Fiscal Benefits for Private Investment, Law
17/03, from 25 July 2003.
Restricted Sectors
Reserved areas of investment are infrastructure related to the telecommunications
system and postal services in which the Government has to have majority
ownership or be senior partner. Some sectors are exclusively reserved for the
Government namely: production, distribution and sale of military materials, central
banking and matters related to the national currency, and ownership and
management of seaports and airports.
Development Zones
Development Zones eligible for Financial Incentives are:
Zone A: Province of Luanda, the capital-municipalities of the Provinces of
Benguela, Huíla, Cabinda and the Municipality of Lobito
Zone B: Remaining municipalities of the provinces of Benguela, Cabinda, Huíla,
the Province of Kwanza Norte, Bengo, Uíge, Kwanza Sul, Lunda Norte
and Lunda Sul
Zone C: Provinces of Huambo, Bié, Moxico, Cuando Cubango, Cunene, Namibe,
Malanje and Zaire
Eligible Industries
Eligible industries for financial incentives are defined in Article 24 of the New
Investment Law (2003) and Article 4 of the Tax and Customs Incentives Law
(2003): Farming & Animal Breeding, Processing, Fishing & Derivatives, Civil
Construction, Health & Education, Energy & Water Infrastructure, Roads &
Railroads, Ports & Airports, Telecommunications, Heavy Cargo & passenger
Equipment.
Financial Incentives
Bonus Incentives
Special contracts
Development
Zone
Customs Duties:
exemption from
payment of duties
& fees
Zone A
Zone B
Zone C
3 years
4 years
6 years
Industrial Tax:
Profits yielded
from invest-ments
are exempt from
payment of
industrial tax
8 years
12 years
15 years
Capital Gains Tax:
Companies promoting
capital investments are
exempt from payment
of capital gains tax
5 years
10 years
15 years
In addition, Bonus incentives are granted for the above mentioned eligible sectors:
1.
Industrial Tax exemption for a period of up to 10 years for:
o Investments creating 50 or more full-time jobs for national citizens;
o Investments in new undertakings & in the rehabilitation of
destroyed or paralyzed undertakings in the priority areas (Zone C
only).
2.
Investment expenditures can be assessed as costs for:
o Up to 100% of the expenses incurred in the construction & repair
of roads, railroads, telecommunications, water supply and social
infrastructure for the workers, their families and local inhabitants;
o Up to 100% of the expenses incurred in vocational training in all
fields of social &productive activity;
o Up to 100% of the expenses incurred in investments carried out in
the cultural sector and/or purchase of works of art of Angolan
authors & creators, provided they remain in Angola and are not
sold for a period of 10 years.
Separate contracts are issued between the State of Angola and the foreign
investor in case of the following private investments:
Development of a Naval Shipyard: Foreign investors who intend to develop a naval
shipyard to support the oil industry with an amount of US$208,3 million receive a
special contract which provides clauses for resolving disputes under the Law of
Voluntary Arbitration, Law no. 16/03, from 25 July 2003, regarding the transfer of
profits and guarantees as well as the protection of rights and guarantees according
to articles 13, 14, 15 of the Private Investment Law no. 11/03.
Beer Factory: for the establishment of a beer factory in Angola at an investment of
US$92,637,653.00. ANIP is the representative of the State.
Assembly of Cars: when installing a factory for the assembly of cars at an amount
of US$30 million.
2.3
EPZs, Freeports and other Special
Economic Zones
The enclave of Cabinda got exempted from all customs duties for businesses and
individuals. The newly expanded port of Cabinda started operating in 2009.
However, these exemptions and reductions do not apply to the oil industry.
Otherwise, Angola has no functioning foreign trade zones although such zones
have been under discussion.
2.4
Tax Incentives
Tax incentives for private investments including bonus incentives for industrial
income tax are described together with the other fiscal incentives in section 2.2
above.
2.5
International Trade & Export
Promotion
One objective of the government in its new Development Plan 2009 is to promote
the export sector in Angola to make it more competitive, efficient and effective.
Angola has agreed to the SADC Trade Protocol but did not submit a tariff offer and
delayed the implementation of the protocol until 2010. Consequently, it did not sign
to the SADC free trade area that was launched in August 2008. For better access
to the US market, a Trade and Investment Framework Agreement (TIFA) was
signed with the US in May 2009.
Additional facilitation for the export sector are the customs cooperation agreements
with Portugal, São Tomé and Principe, and since December 2006 with Namibia.
Further agreements are expected with South Africa and members of the
Community of Portuguese-Speaking Countries (CPLP, or PALOP). It is also
currently negotiating customs agreements with its two neighbours Zambia and the
Democratic Republic of Congo.
2.6
Promotion of
National
Entrepreneurs
Other Issues
With the Law of the promotion of Angolan private Entrepreneurship, Law no. 14/03,
from 18 July 2003, the government provided a legal document that allows national
Angolan investors preferential treatment. The law concedes special advantages in
terms of fiscal incentives, financial and technical support, special rights,
guarantees and privileges from the State and the establishment of training centres.
To support national entrepreneurs further, the Fund for the Promotion of
Entrepreneurship has been established by the Decree no. 39/08, from 23 June
2008. It is administered by the Ministry of Finance and has the purpose of:
 supporting the creation of new production units that have a favourable impact
on the national production sector and the reduction of external dependency on
the current volume of imports;
 encouraging the participation of nationals and companies under Angolan law in
terms of ownership and management of national assets.
3
ACCESS AND ADMISSION OF
FOREIGN INVESTORS
3.1
Foreign Investment & Capital
Mobility
All investment intentions have to be registered by ANIP and all proposals for
project both national and international have to be handed in at ANIP, even though
another entity may be responsible for approval. Information on processes, required
documents and applicable laws can be found well-described on the website of
ANIP: http://www.anip.co.ao/.
The Private Investment Law (PIL – Law 11/03, 13 May 2003) provides the basis for
all investment-related issues, sets the specifications, requirements, and processes
of investment.
Definition of
Investments
There is a distinctive difference in the definition of foreign and national investment
(Article 2 of the Private Investment Law) which has further implications on the
operation of investment projects.
“National investor – means the resident individual or legal entity, regardless of
nationality, who conducts investments in the Country with capitals domiciled in
Angola, not entitled to transfer dividends or profits abroad.”
“Foreign investor – means the resident or non-resident individual or legal entity,
regardless of nationality, who introduces or uses in domestic territory, under the
terms of the preceding paragraph, capital domiciled abroad and is entitled to
transfer profits and dividends abroad.”
Foreign investors are allowed to transfer foreign currency to Angola, import capital
investments and equipment which would otherwise be restricted (see special
allowances for foreign investors in article 9, 10, Private Investment Law).
Investment restrictions
Foreign equity participation is restricted in several economic sectors, such as:
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3.2
Application for
Investing
49% in the oil and gas sector
50% in the insurance sector
80% in the transport sector
30% in the publishing, TV broadcasting and newspaper media sectors
10% in the banking sector.
Foreign Investment Establishment,
Registering and Licensing
Processes
Investors interested in investing in Angola have to apply for approval of their
investment according to the Prior Declaration System (Declaraçao Previa), Private
Investment Law, 2003, Articles 26-32. Investors have firstly to obtain an application
form from ANIP in Luanda office for a fee of US$150. Together with the completed
application form, a package of information and documents needs to be supplied to
ANIP. A list of all documents required is available on the website of ANIP
(http://www.anip.co.ao/Legislacao/Procedimentos.aspx).
Projects valued at US$5 million and more need to provide an expanded proposal
including financial, economic and technical feasibility studies and a draft contract
(see explanations below on Contractual Regime). All documents must be
translated into Portuguese and certified by the Angolan Embassy in the country of
residence of the investor. During the process of completing the required folder,
ANIP provides a project analyst guiding the investor.
Once the completed package is handed over to ANIP, the process of approval
occurs according to two systems:
 Prior Declaration Regime: Projects from Angolan nationals with a value of
US$50,000 to US$5 million and foreign investors with a value of US$100,000 to
US$5 million;
 Contractual Regime: Projects at a value of US$5 million and more will be
reviewed by ANIP and the Council of Ministers, as well as projects that may
only be carried out by means of concession of rights of temporary operations,
and projects carried out with the participation of public companies.
Prior Declaration
Regime
After providing the completed documents as required, ANIP will assess the
proposal and decide within 15 days. ANIP has the full power of approval or
rejection of proposals. A rejection can only be based on motives according to the
law. In case there is no expression of rejection of the project on or before the 15
day period, it shall be considered approved. Within 5 days of formal request by the
investor, ANIP shall register the investment and issue the Private Investment
Registration Certificate. If that does not occur, the investor may claim and appeal
against such failure under the legislation governing administrative procedures.
Contractual Regime
The contractual regime requires setting up an investment contract which is an
administrative act between the State, represented by ANIP, and the private
investor. The New Investment Law specifies the exact rights and obligations
covered by the investment contract in article 33. The investor provides all required
standard documents to ANIP and in addition financial, economic and technical
feasibility studies and a draft investment contract. ANIP will then analyse the
proposal, begin negotiation with the investor and seek the opinion of other public
administration bodies if deemed necessary. Within a timeline of 30 days of
admission, a decision shall be made, the negotiations with the investor completed
and an opinion be issued on the legal, financial and technical assessment, the
application for grants, incentives and exemptions. All documents together are then
forwarded to the Council of Ministers who has the final competence of approval
within a timeline of 30 days.
Certificate of
Registration
Once approved by either ANIP or the Council of Ministers, ANIP issues a
Certificate of Registration for Private Investment (Certificado de Registo do
Investimento Privado, CRIP) which gives the titular the right to invest, specifies the
terms under which the investment may be undertaken and confers rights and
obligations to the private investor. The investor then has to register a company,
publish company by-laws in the official Gazette (Diario de Republica), obtain a
business licence and register with the fiscal authorities. ANIP will furthermore send
the CRIP to the National Bank of Angola (BNA) to authorise the entry of foreign
capital, as well as to the Customs Office and relevant Ministries.
Business
Registration
Foreign Investors have to establish a legal entity in Angola to conduct business.
The Company Law (Law 1/04, 13 February 2004) proved the options of a
subsidiary, forming a partnership or incorporation.
Subsidiary: has a full legal authority that can enter into business contracts and
operates much like a local company in its dealing with third parties. When
registering, the parent company allocates a designated amount for capitalisation of
the subsidiary.
Forms of Business
Entity Establishment
Local Company: may be organised as a: (i) General Partnership (Sociedade em
Nome collectivo); (ii) Limited Partnership (Sociedade em Comandita); (iii) Limited
Partnership with Share Capital (Sociedade em Comandita por acções); (iv) Limited
Liability Company by Quotas (Sociedade Limitada or LDA); or (v) Joint Stock
Company (Sociedade Anónima or SA).
The most common legal entities used by investors are the Limited Liability
Company by Quotas and the Joint Stock Company.
General Partnership: The stakeholder covers the general obligations of the
company without limit and together with the other stakeholders, irrespectively to his
share.
Limited Partnership: For this type of company, the provisions for general
partnerships apply to the extent that they comply with the Commercial Company
Law.
Limited Partnership with share capital: provisions relating to corporations (joint
stock company) are applied to the extent that they comply to the Commercial
Company Law.
Limited Liability Company by Quotas (Sociedade Limitada, LDA): The LDA has a
minimum of 2 shareholders and a minimum capital requirement in national
currency (Kwanza) equivalent of US$1,000. 50% of the minimum capital can be
deferred provided that the full minimum is paid up on the effective date of
incorporation. The LDA has to appoint a Management group and a General
Assembly. If the LDA does not have an Auditing Committee it is required to appoint
a Chartered Accountant if a certain threshold is reached.
Joint Stock Company (Sociedade Anónima, SA): The SA has a minimum of 5
shareholders. In case that one shareholder is a State entity, the minimum number
of shareholders is reduced to 2. The minimum capital requirement is the equivalent
of US$20,000 in national currency, of which 30% must be fully paid on the effective
date of incorporation. The SA appoints a General Assembly, a Board of Directors
and an Audit Committee.
All legal entities have to register and fulfil the following licensing requirements:
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Tax registration
Commercial registration
Statistical registration
Commercial Operations Permit and/or Industrial Permit
Registration as Importer/Exporter
Social Security Registration
For incorporation of the local company, it must open a bank account and deposit
the required funds for capitalisation. Proof of the deposit is then submitted to the
Notary Public which will execute a Notary Deed of Incorporation.
Commercial activities fall under the Law no. 01/07, from 14 May 2007, law on
Commercial Activity. Industrial activities are regulated under the Law on Industrial
activities no. 5/04, from 7 September 2004.
Mining Sector
The Mining sector is regulated by the Mining Law from 1992, and the Diamond Law
no. 16/94, from 17 October 1994. All minerals belong to the State. The Ministry of
Geology, Mining and Industry is in charge of mineral exploration and development
activities and grants relevant prospecting and mining titles. The law prescribes that
any mineral prospect has to be transferred to a state company for further
development. In the diamond sector, ENDIAMA, the State Diamond Mining
Company is in charge. FERRANGOL is the state owned company responsible for
mining iron ore and manganese, ROREMINA is responsible for mining ornamental
stone, FOSFANG for mining rock phosphate, and MINAQUARTZ for mining quartz.
Information on the individual processes for application for prospecting and
exploration permits can be found in the Mining Law from 1992, and for the
Diamond Sector in the Diamond Law no.16/94.
Private Investment
in the Utility Sector
The government encourages the establishment of public-private partnerships and
the participation of private investors in public utilities such as the electricity and
water sector. Private companies can receive concessions to operate hydroelectric
dams as well as shipping terminals in the Port of Luanda.
Energy and
Electricity Sector
The energy sector is regulated by the General Electricity Law of 1996. The Council
of Ministers is authorized to grant concessions for power capacity superior to 1MW
or when there are more than 50,000 inhabitants. Provincial governments have the
power to grant licenses. Another important law for this sector is the Law of
Delimitation of the Sector of Economic Activities from 2002. Decree no. 43/01
specifies the procedure in for concessions. The Ministry in charge is of the sector is
the Ministry of Energy and Waters (MINEA). However, the Ministry of Finance sets
the electricity tariffs, and the Ministry of Planning is also involved in the
development and implementation of electricity policy and regulation.
3.3
Foreign Employment & Residence
The new Law no. 02/07, from 31 August 2007 deals with the Legal system of
Foreigners in the Republic of Angola. Article 49 specifies the privileged visa for
foreign investors that shall be issued by diplomatic representations of Angola
abroad. It allows foreign nationals the entry into Angola for the implementation and
execution of the investment proposal as approved under the Private Investment
Law.
There are the following types of visa:
a) Privileged Visa type A - is granted to a foreign citizen with investment exceeding
the equivalent of U.S. $ 50,000,000.00 or investment in the development of
Zone C;
b) Privileged Visa type B - is granted to foreigners with an investment less than the
equivalent of USD 50,000,000.00 and more than $ 15,000,000.00;
c) Privileged Visa C - is granted to foreigners with an investment less than the
equivalent of USD 15,000,000.00 and more than USD 5,000,000.00;
d) Privileged Visa type D - is granted to foreigner with an investment less than the
equivalent of USD 5,000,000.00.
The problem with this law is that it does not provide any regulation which causes
significant problems to foreign investors to receive approval of these privileged
visas. The delay in the adoption of such respective regulations generated some
arbitrary in granting of visas by the competent authorities. This situation is
counteracting to the intentions of this law and created an investment climate that is
not attractive to foreign investments.
3.4
Foreign Investor Access to Land
and Foreign Property
All land ultimately belongs to the State of Angola, which is confirmed in the Law on
Land and Urban Planning no.9/2004 from 9 November 2004 and article 15 of the
Constitution. Most urban and non-urban land can effectively become privately
owned by the use of long-term renewable leases from the government. The law
furthermore contains provisions for land occupation, leasing and land use for
private purposes. Registering property takes about 11 months according to the
World Bank “Doing Business 2010” Report and fees amount to 11.4% of property
value. For selling privately land, owners must wait 5 years after the purchase.
The Law on Spatial and Urban Planning no. 3/04, from 25 June 2004 specifies
regulations on physical planning.
Oil and diamond production and exploration rights are only granted for a limited
period of time and as partnerships between a private company and the resource
owners (Angolan public company) such as SONANGOL and ENDIAMA. Diamond
exploration concessions are usually granted for 3 to 5 years with possible
extension. Oil exploration concessions last mostly for 10 years.
4
FOREIGN INVESTMENT
OPERATIONS
4.1
Employment
“Angolanisation”
The General Labour Law 1981 outlines responsibilities of employers and
employees. The Private Investment Law (2003), article 18, 54, and other
regulations favour the hiring of Angolan nationals (“Angolanisation”). They mandate
equal pay for Angolan and expatriate staff with the same job functions and
responsibilities and enforce the investor to promote training of local workforce up to
management responsibilities. Especially in the oil industry, Government strictly
controls the hiring of Angolan nationals and is enforcing the “Angolanisation” policy
since late 2008. A company may request government permission to hire
expatriates only where a qualified national is not available. Outside the oil sector,
this requirement discourages bringing in expatriate staff and short-term experts
experience extended delays in receiving approval for visas. In general, expatriate
staff in Angola is limited to 30% of a company’s workforce.
Work Permits
Under the Law on the Legal system of Foreigners in the Republic of Angola (law
no. 02/07), article 51, are the provisions for work permits related to the investment
project described. The possible work visas are:
a) Work permit type A - is granted for the exercise of a profession at the service of
an institution or public company;
b) Work permit type B - is granted for the exercise of an independent professional
activity, service, sports and culture
c) Work permit type C - is granted for the exercise of a profession in the sectors of
oil, mining and construction
d) Work permit type D - is granted for the conduction of a profession in the areas
of trade, industry, fisheries, maritime and aeronautical
e) Work permit type E - is awarded to an activity within the framework of
cooperation agreements
f) Work permit type F - is granted for the exercise of a profession in any other
business not mentioned in the previous paragraphs.
Labour Legislation
The General Labour Law No. 2/00 provides significant benefits and protection to
workers. It states clear procedures for hiring workers, the rights for maternity and
any other kind of leave, the right to strike and bargain collectively. In case of a
contract with unlimited duration, a basic probation period of up to 6 months can be
included in the contract during which any of the contracting party can terminate the
contract without notice or justification. After termination of the probation period,
dismissed workers have the right to appeal to a Labour Court, but many employers
prefer to reach a monetary settlement in case disputes arise. According to the
“Doing Business Report 2010”, the average cost for firing a worker is estimated at
58 weeks’ worth of salary in Angola.
4.2
Business Taxation
Business taxation is regulated under the Corporate Income Tax Code of 1972 in
the form as it was amended by Law 18/92. All companies and self-employed
individuals are subject to business income tax. Domestic dividends, interest and
royalties are furthermore subject to withholding of an investment income tax under
Law 7/97 Withholding Tax.
A resident company is taxed on its worldwide income and non-residents that earn
income in Angola are subject to the same rules as residents. Corporate Income
Tax has to be paid by the 31st of May of the year following the year for which tax is
due. However, 75% of the final tax amount which is based on the previous year’s
tax return has to be paid in interim payments in January, February and March.
There are special tax regulations applying to companies in the petroleum and
mining sectors.
Business Income
Tax
The standard corporate income rate is 35% and entities in the Mining sector 35%.
Oil enterprises have an income tax of 50% for production sharing agreement
partners, and 66,75% for joint venture partners taxed as business income.
Tax on Dividends
from Capital Gains
Dividends from capital gains are taxed with 10% from domestic sources, from
foreign sources they are taxed as business income. The tax rate for interest is 15%
for loans and 10% for corporate bonds.
Tax on Royalties
Royalties coming from a domestic source are taxed at 10%; from foreign source
they are exempted. Fees and rent are taxed as business income.
Tax on Capital Gains
Worldwide capital gains obtained by resident companies are treated as business
income at taxed at the standard flat rate of 35%. Capital gains from the sale of
shares, quotas and other corporate right do not attract any income tax. Capital
gains derived by individuals that don’t form a business entity and an alienation of
immovable or movable property are not subject to any tax.
Tax on Transactions
The standard tax rate of consumption is 10% and in some cases the consumption
tax is reduced to 2% (e.g. for domestic supplies and some commodities) while
increased tax rates of 20 to 30% apply to commodities which are essentially luxury
goods.
Stamp and Transfer
Duty
In case of any transactions, acts, deeds, documents, papers, receipts and other
transactions, a stamp duty has to be paid. In certain cases the amount of duty is
fixed; in others, however, it is a percentage in the range of 0.3% to 10%. The most
common stamp duty rate is 1%.
4.3
Environmental
issues
Environment, Physical Planning,
Health & Safety, Consumer
Protection
The environmental protection regulations (such as Decree no. 51/04, from 23 July
2004 and the Basic Environmental Law no.05/98, from 19 June 1998) require
conducting an Environmental Impact study for investment projects in areas such as
petroleum, mining, power stations and road construction.
A special law has been set up for the establishment and operation of Associations
protecting the Environment under the Law no. 3/06, from 18 October 2006.
The law on Spatial and Urban Planning no. 3/04, from 25 June 2004 specifies
regulations on physical planning.
Labour Standards,
Safety & Health
Specific conditions as labour standards, safety and health standards, as well as
environmental standards are also specified in the individual legislation of sectors,
such as the Law on Industrial Activities no. 5/04, aw on Petroleum Activities no.
10/04 (from 12 November 2004), the Mining Law no. 16/94 (from 7 October 1994).
Consumer
Protection
Law no. 15/03, from 22 July 2003 is the Basic Consumer Law in which the State
affirms the official responsibility to protect consumers, sets out all their rights and
respective legislative interventions in this regard, and supports the formation and
operation of consumer associations. The basic right of consumer protection is
furthermore stated in article 78 of the Constitution
4.4
Competition Policy & Law
Angola does not have a competition policy and law in place. Sectors of the
economy are regulated in separate legislation such as the Law on Commercial
Activity no. 1/07, from 14 May 2007, Law on Industrial Activities no. 5/04 (from 7
September 2004), Law on Petroleum Activities no. 10/04 (from 12 November
2004), the Basic Law on Electricity no. 14-A/96 (from 31 May 1996), the Basic
Telecommunication Law no. 08/01, the Basic Postal Law no.06/87 (from 9 March
1987), or the Law on Financial Institutions no. 13/05.
4.5
Monetary Policy, Foreign Exchange
and Foreign Investors
With the Banco Nacional de Angola Act, Law no. 6/97, from 11 July 1997, the BNA
was granted all functions as Central Bank of Angola with the main objective to
assure the preservation of the national currency.
Foreign Exchange
Regulations
The entry and exit of capital is not liberalised in Angola and any foreign exchange
trade needs the official authorisation of the National Bank of Angola (BNA)
according to article 10, Foreign Exchange Law no. 05/97 from 27 June 1997.
Entities operating in fields linked to tourism, such as hotels, tour operators, or
travel agents are authorised to buy and sell foreign currency, traveller cheques or
other payment instruments, but only under terms and provisions of the BNA. They
also have to register statistics, data and information and provide it to the BNA at
request to prove their compliance with the instructions (article 12 of the respective
law).
For new investors, BNA will be informed by ANIP to authorise the entry of foreign
capital in the framework of the applied investment project after approval of the
investment license as well as thereafter. The process for application is specified in
Article 48, Private Investment Law (2003). All the transactions fall under national
laws such as the Currency Exchange Law for transaction fees, amortisations, taxes
and other duties.
The Private Investment Law (2003) specifies how the transfer of profits and
dividends has to occur in compliance with this law and the Foreign Exchange Law.
The foreign investor can transfer abroad (Article 13):
 distributed dividends or profits after having deducted the legal amortisations and
taxes levied thereon, and taking into account the relevant holding in the equity
capital of the company or firm concerned;
 liquidation proceeds of its investments, including capital gains, after deduction
of the taxes levied thereon;
 any credits, after deduction of the relevant taxes, arising out of acts and
contracts considered as private investment operations under this law;
 proceeds of indemnities pursuant to paragraphs 3 and 4 of Article 15 hereunder
(if State interferes by law);
 royalties and other income obtained from indirect investment revenues
associated with the assignment of transfer of technology.
Accordingly, the Central Bank must authorise repatriation of profits and dividends
exceeding US$100,000 by Central Bank Order 4/2003. Furthermore, it can
temporarily suspend repatriation of dividends or impose repatriation in instalments
if immediate repatriation would have an adverse effect on the country's balance of
payments.
Investments in diamonds, petroleum and financial institutions are covered by
separate legislation such as the Law of Diamonds, Law no.16/04, the Law of
Petrol Activities, Law no. 10/04, from 12 November 2004, and the Law of Financial
Institutions, Low no. 13/05, from 30 September 2005.
Bank account
Regulation
All private investors have to open bank accounts in banks domiciled in the country
where the relevant financial means will be deposited and through which the
payment operations related to the investment will be made. Article 55, Private
Investment Law (2003) allows foreign investors to keep foreign currency in their
bank accounts and convert it into local currency as desired. Banks are not allowed
to automatically convert imported currency that is deposited in foreign currency
accounts and is used for private investment operations.
International Tax
Agreements
Even though article 43 of the Private Investment Law explicitly encourages the
Angolan State to establish as agreements to avoid double taxation with as many
countries as possible, it has not concluded any Double Taxation Treaties up to
today.
4.6
Public Procurement
Even though the WTO Trade Policy Review (2010) states that Angola is a
signatory to the plurilateral Agreement on Government Procurement no distinctive
legislation or regulation for public procurement could be identified.
4.7
Intellectual Property
The Law of Industrial Property, Law no. 3/92, from 28 February 1992, regulates the
system for industrial property protection for industrial inventions and designs, the
protection and regulation of trademarks, names and insignia of establishment,
indication of source and the effective prevention of unfair competition. Generally
one can say that Angola has basic intellectual property rights. It adopted the Paris
Convention for the Protection of Industrial Intellectual Property for the protection of
patents and trademarks in August 2005. The ministry in charge for administering
such issues is the Ministry of Industry.
The Private Investment Law (2003) also secures under article 14 full protection and
respect for professional, banking and trade secrecy of companies and firms that
are incorporated for investment purposes.
The Copyright Law 04/90 regulates authorship, literacy and artistic rights and the
Ministry of Culture is in charge.
The Law of Industrial Property (Law no. 03/92, from 28 February 1992) specifies
the rights for patents and inventions in the industrial sector.
Furthermore, new legislation in regard to industrial property and author’s rights is
currently in preparation.
WIPO
Angola is member of the World Intellectual Property Organisation (WIPO) and
follows the international patent classifications for patents, products and services to
identify and codify requests for patents and trademark registration. The fee filing for
a patent petition varies according to the type of request.
4.8
Constitution
Investment Protection and Dispute
Settlement
The constitution guarantees in article 14 that the State protects private property of
individuals and collectives and respects the right to private property according to article
37. Temporary acquisition and expropriation is only allowed for public cause and with an
adequate and timely compensation.
National Treatment
According to articles 11, 12 of the Private Investment Law (2003), foreign investors
or companies and firms incorporated in Angola with foreign capital have the same
legal status and shall be governed by Angolan general laws such as Angolan
companies and firms. Any discrimination among investors is forbidden.
Respectively, foreign investments have to comply with Angolan law. All private
investors have access to Angolan courts to defend their rights and the State
guarantees this access and due legal process.
Angolan Court
System
However, the Angolan legal and judicial system is considered inefficient and lacks
capacity. Legal fees are high and most businesses avoid taking disputes to court.
The “Doing Business in 2010” Guide of the World Bank estimates that commercial
contract enforcement as measured by the time elapsed between filing a complaint
and receiving restitution, typically takes about 1,011 days.
Voluntary
Arbitration
An alternative to the juridical court system is the Voluntary Arbitration Law (VAL,
Law no. 16/03, from 25 July 2003)) which provides for non-judicial arbitration of
disputes, except for cases expressly excluded by the law.
Investment
Protection
The Private Investment Law prohibits in Article 14 the nationalisation of private
investor assets and guarantees a non-interference with the management of private
companies. In case of a change in Angolan political and economic regime and the
adoption of exceptional measures and nationalisation, the State guarantees to pay
fair and prompt cash indemnity for nationalised property. The indemnity shall be
determined in accordance with the applicable rules and legislation. Furthermore,
this article secures that existing investments will not be affected by adverse
economic and tax alterations for a period of at least 3 years up to a maximum of 5
years.
New license regulations in the energy sector provide stronger legal protection for
private investment in infrastructure projects such as in building dams, power plants
or electricity distribution grids.
OPIC
Investment insurance to projects in Angola is provided by the Overseas Private
Investment Corporation (OPIC). Projects in certain sectors and valued at less than
US$50 million can apply for OPIC insurance including coverage under the Quick
Cover program.
ICSID and MIGA
Until today, Angola has not ratified the convention of ICSID, the International
Centre for the Settlement of Investment Disputes, but it is a member of the
Multilateral Investment Guarantee Agency (MIGA) providing private sector
guarantees and dispute settlement assistance. Efforts by MIGA in the past have
proven successful.
TIFA
A bilateral Trade and Investment Framework Agreement (TIFA) between the
United States of America and Angola has been negotiated and signed in May
2009. It sets a forum to address trade issues and help enhance trade and
investment relations between the two countries.
Please see a list of Bilateral Investment Treaties below. Further BITs with India,
North Korea, Thailand and Singapore are currently in revision.
4.9
International Agreements and
Obligations – Trade and other
Agreements, BITs, DTTs
Angola is member of the WTO since 1996 and is part of the Least Developed
Countries. A list of Bilateral Investment Treaties is attached below. Angola has no
Double Taxation Treaties concluded until today.
ECCAS
Besides being part of SADC, Angola is also full member of the Economic
Community of Central Africa States (ECCAS) since 1999 together with Burundi,
Cameroun, Central African Republic, Chad, Equatorial Guinea, Gabon, Democratic
Republic of Congo, Republic of Congo, Ruanda, and São Tomé e Principe.
ECCAS has been designated a pillar of the African Economic Community (AEC),
especially as it covers the countries of the Great Lakes which have suffered long
conflicts. The main aim of ECCAS is the establishment of a Common Market which
has not been achieved so far.
PALOP
Angola is part of the community of African Portuguese Speaking Countries.
NEPAD and APRM
In the context of the New Partnership for Africa’s Development (NEPAD), Angola
adhered to the African Peer Review Mechanism (APRM) on 8 July 2004. This selfmonitoring mechanism encourages the conformity in regard to political, economic
and corporate governance values, codes and standards among African countries
through the exchange of experience. So far, the evaluation panel did not come to
Angola yet, but the country is preparing for the review.
Customs
Cooperation
Agreements
Customs cooperation agreements have been signed with Portugal, Sao Tome and
Principe and agreements with South Africa and the Community of Portuguese
Speaking States (CPLP), Namibia, Zambia and DRC are in discussion.
5
SADC RELATED ISSUES
Angola has signed the Southern African Development Community (SADC) free
trade protocol that will harmonise trade and customs regimes and reduce tariffs
among the 15 SADC member states. However, it did not start implementing the
protocol until 2010.
EPA negotiations
Angola forms part of the SADC group for the Economic Partnership Agreement
(EPA) with the EU. The EPA could not be completed until December 2007, and
Angola did not sign the “interim” agreement. Accordingly, Angola’s access to the
EU market under the Cotonou Agreement has elapsed, but it still enjoys the
preferences under the Everything But Arms (EBA) initiative for Least Developed
Countries. It continues to negotiate an EPA in the SADC EPA group.
Bilateral Investment
Treaties
Bilateral Investment Treaties, as of 1 June 2010
Partner Country
Date of signature
1
2
3
4
5
6
7
Cape Verde
Germany
Italy
Portugal
South Africa
Spain
United Kingdom
Sources included
30-Sep-97
30-Oct-03
16-Jul-02
22-Feb-08
17-Feb-05
21-Nov-07
04-Jul-00
Date of Entry into
force
15-Dec-97
01-Mar-07
21-May-07
-
Agencia Nacional para o Investimento
http://www.anip.co.ao/Home.aspx
Privado
(ANIP)
Website
(2010)
Banco Nacional de Angola (2010) Website, http://www.bna.ao/main.aspx
Government of Angola (2010) Portal das Empresas (Website), Angola-Portal,
http://www.angolanainternet.ao/portalempresas/index.php?option=com_content&ta
sk=view&id=94&Itemid=87&limit=1&limitstart=1
Government of Angola (2008) Programma de Governo 2009, 15 Setembro 2008,
http://mirror.undp.org/angola/LinkRtf/Programa-GovernoAO-2009.ppt
Government of Angola: divers legislation and regulation
UNCTAD (2010) The Legal Framework of Private Investments in the Republic of
Angola, National Study
UNCTAD (2010) Bilateral Investment Treaties and Double Tax Agreements
http://www.unctad.org/Templates/Page.asp?intItemID=2339&lang=1
US Embassy to Angola (2008) Website, Investment Climate Statement 2009,
http://angola.usembassy.gov/commercial_information_on_angola.html
World Bank (2009) Doing Business Report 2010, http://www.doingbusiness.org/
World Bank (2010) Investing Across Borders 2010: Indicators of foreign direct
investment
regulation
in
87
economies,
http://iab.worldbank.org/~/media/FPDKM/IAB/Documents/IAB-report.pdf
World Trade Organisation (2006) Trade Policy Review Angola, Report by the
Secretariat, all papers available at:
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm#bycountry