Angola: New Rules On The Consumption Tax Applicable To Oil Industry
17 January 2014
Posted by: Author: R M. Fernandes Ferreira, M.M De Almeida,
Authors: R.M. Fernandes Ferreira, M.M De Almeida, José Calejo Guerra and F.M 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 tax regime.
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 deadlines.
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 restaurant services.
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 on mondaq.com.