Luanda:Members of the National Assembly have put a temporary halt to the discussion and voting on the proposed Corporate Income Tax Code (IRPC). The suspension, which occurred on Monday, aims to reach a consensus between the Executive branch, which proposed the legislation, and the parliamentarians.
According to Angola Press News Agency, the current impasse stems from the Executive's proposed 25 percent tax rate for companies. In contrast, deputies have suggested reducing this rate to 20 percent for all taxpayers impacted by the legislation.
Before the debate was paused, Aia-Eza da Silva Troso, chair of the 5th Committee on Economy and Finance of the National Assembly, voiced concerns over the increased tax burden on certain sectors, highlighting a rise in some rates from 15 to 35 percent, which she deemed excessive. She noted that these changes could significantly impact investments and corporate activities.
MPLA MP Lourdes Caposso advocated for the inclusion of tax incentives within the legislation to foster employability and human capital development. Caposso criticized the proposed rates for lacking clear benefits for entrepreneurs focused on job creation.
UNITA MP Agostinho Kamuango supported suspending the bill's discussion in entirety, to resolve outstanding issues among the proposing Executive and the 5th Committee members.
Secretary of State for Tax Affairs, José Leiria, addressed concerns by clarifying that autonomous or confidential expenses are those not properly recorded in accounting. He recommended retaining a 30 percent rate for such expenses, despite the proposed general rate of 25 percent, and agreed on including incidental services in the legislation.
The temporary suspension is intended to facilitate a consensual resolution regarding the tax rates and other provisions of the proposed law. Parliamentarians are set to resume discussions on the bill on Tuesday.
The proposed Corporate Income Tax Code seeks to overhaul the taxation of income for legal and similar entities, enhancing tax competitiveness, expanding the tax base, and promoting tax fairness. It also aims to align with international practices, eliminate double taxation, and introduce rules on transfer pricing and company groups, while reducing tax evasion and fraud.
