The Special Contribution on Foreign Exchange Operations (CEOC), applicable to foreign currency transfers outside Angola, at a rate of 2.5% for individuals and 10% for legal entities, comes into force on January 1, 2024.
The information is contained in a note from Angola’s General Administration of Taxation (AGT), signed by its President José Leiria, which Lusa had access to this Wednesday, and which sets out how it will be applied.
This taxation will apply to all foreign currency transfers abroad made by individuals or legal entities domiciled or headquartered in the national territory, under contracts for services, technical assistance, consulting and management, capital transactions and unilateral transfers.
In the communication, the Angolan tax authority reports a meeting held with the Association of Banks of Angola, which bears part of the responsibility for compliance with this new standard, and recalls that the law approving the General Public Budget (GPB) for 2024 provides for the introduction of CEOC into the Angolan legal system.
According to the terms of the OGE 2024 law, transfers intended to cover the costs of health and education, “provided that they are made directly to the relevant health and education institutions, as well as the repatriation of dividends or borrowed capital,” will be excluded from the regime. including applicable interest.”
According to AGT, the basis for the calculation of CEOC will be the amount in the national currency that is the subject of the transfer, “regardless of the currency used”, to which a rate of 10% will be applied in cases of transfers carried out by legal entities and 2.5% in the case of transfers by individuals.
The measure establishes an exemption from the above-mentioned contribution by the state and its bodies, institutions and organizations (with the exception of public companies), as well as diamond companies and oil investment companies.
The Angolan tax authority also clarifies that the economic and financial burden of the CEOC “will fall on the individuals or entities ordering the transfer” and that “the obligation to withhold, pay and deliver the tax will fall on the financial institutions during the processing of the outward transfer.”
The AGT recalls the obligation of financial institutions to maintain the CEOC from 1 January 2024, establishing the payment of a fine to the specified institutions in case of non-compliance.
Author: Lusa
Source: CM Jornal
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