Angola: New Rules On The Consumption Tax Applicable To Oil Industry
11 December 2013
Posted by: Author: RFF & Associados
Author: Rogério M. Fernandes Ferreira, Marta Machado De Almeida, José Calejo Guerra & Francisco Mascarenhas De Lemos (RFF & Associados)
Angolan's Republic Gazette of 8 October 2013 has been
recently released thus publishing Executive Decree no. 333/13,
which introduces a new set of rules applicable to the assessment
and payment of consumption tax by oil companies in Angola.
According to this regime service providers shall, when issuing
invoices for services provided to oil companies in Angola, include
the consumption tax due in accordance with the general consumption
Thus, when paying for the services provided, the oil companies
shall withhold the amount of consumption tax due, thus being
responsible for paying it to the relevant tax office.
In this respect, oil companies are subject to the general rules
contained in the Consumption Tax Code relating to the payment of
tax, namely those regarding the applicable procedures and
Non-compliance with this regime makes the consumption tax borne
by oil companies a non-recoverable cost for the purposes of the
Petroleum Income Tax.
Furthermore, this regime does not apply to the supply of water,
electricity or telecommunication services neither to hotel and
As a final note, it should be noted that the consumption tax
rate in Angola applicable to the provision of services is 5% or
10%, depending on the type of service.
This article first appeared in mondaq.com.