Law no. 26/2020, of 20th July, 2020, approved several amendments to the Industrial Tax Code, which have a huge impact not only on the Angolan resident companies, but also on all foreign entities providing services to Angolan clients.

Among the several amendments, we highlight the following:

• Reduction of the standard rate from 30% to 25%.
• Application of a 35% rate to insurance and banking entities, Telecom operators and Angolan oil companies.
• Increase of the final withholding tax rate on services provided by non-resident entities from 6,5% to 15% (except in case of application of a double taxation treaty signed by Angola, such as with Portugal).

Replacement of the two existing taxation groups (Group A and B) by a General and a Simplified regime.

Extension of the loss carry forward period from 3 to 5 years.

The tax neutrality regime is extended to all Industrial Tax taxpayers (up to this moment the regime was only applicable to Major taxpayers)