Tax Alert • Law Of The Excise Duty (also known as Special Consumption Tax)

Law no. 16/21, of July 19th, was recently publicized, approving the Law of Excise Duty (hereinafter referred to as LIEC). LIEC revokes the former Code of the Excise Duty, which was regulated by Law no. 8/19, of April 2th, and by Law no. 18/19, of August 13th.

As per the previous legal framework, IEC (Excise Duty) lies on goods manufactured in Angola and also on imported goods, provided that listed in the attached Table, which establishes the applicable tax rates. Concerning subjective incidence, LIEC retains the structure previously in force, despite promoting a slight simplification, therefore deeming as taxable persons the following taxpayers that:

  • i. Perform operations of manufacturing;
  • ii. Perform the import of goods;
  • iii. Perform public sales;
  • iv. In legal or illegal situation, introducing any goods subject to IEC into consumption;
  • v. Hold any goods subject to IEC that have not yet been subject to taxation.

The tax burden is still supported by the acquirer of the goods subject to IEC. Conversely, the taxable operations remain unchanged:

  • a) Manufacturing of goods;
  • b) Import of goods;
  • c) Public sale of goods.

As to the exemptions, in addition to those already in force, it is added the exemption of electric vehicles.

The taxable amount is calculated in accordance with the following table:

In matter of applicable tax rates, there are changes concerning the following products (all remaining products hold on to the previous tax rates):

  • i. Waters: 3% (previously taxed at 19%);
  • ii. Alcoholic beverages: 4% or 8%, depending on the product (previously taxed at 25%);
  • iii. Ethyl alcohol: 15% (previously taxed at 25%);
  • iv. Jewellery: 15% (previously taxed at 19%);
  • v. Automobiles: 5% (previously taxed at 2%);
  • vi. Aeroplanes and pleasure crafts: 20% (previously taxed at 19%);
  • vii. Fire guns: 50% (previously taxed at 19%);
  • viii. Art: 5% (previously taxed at 19%).

Finally, it is relevant to point out the penalties brought by LIEC:

  • a) AKZ. 300.000,00 for the lack of submission or late submission of the electronic declaration;
  • b) AKZ. 300.000,00 for failing to communicate losses resulting from fortuitous event or force majeure to the Tax Administration;
  • c) 25% of the tax payable, for the lack of stamps;
  • d) AKZ. 200.000,00 for failing to stamp the goods within the deadline determined by the Tax Administration (for each month of delay).

We also clarify that the subjection to any other indirect tax (such as, for example, VAT) does not prevent the taxation due according to the LIEC.

This Law enters in force on August 18th, 2021.

On.Corporate expresses its total availability to provide any additional information to the above or clarify and doubts or questions related to this topic.