ANGOLA

Executive Decree no. 456/17, of 2 October - Approves several forms, including the annual returns for Industrial Tax, Investment Income Tax, Personal Income Tax, Stamp Duty and Consumption Tax, group of companies and appointment of tax representative by non-resident entities.

Law no. 22/17, of 11 December - Grants a legislative authorization to the President to revise and adapt the Customs Tariff Schedule in light of the Combined Nomenclature of the Harmonized System in its 2017 version, including the adjustment of the customs duties and charges, the simplification of the legal system or setting automatic customs benefits for investment projects.

Macroeconomic Stabilization Program - The Council of Ministers approved on the 27th December 2017 the Macroeconomic Stabilization Program for 2018.

The Program sets a number of tax measures, including:

(i) Increase of taxes applicable on alcohol, game and luxury products,

(ii) Review of tax and customs exemptions;

(iii) Review of tax regime applicable to petroleum operations;

(iv) Implementation of specialized courts in taxation matters;

(v) Transitional measures aimed to facilitate the introduction of VAT in the near future.

CAPE VERDE

Order no. 37/2017, of 26 September – approves the official form to be used by municipalities for purposes of VAT refunds.

Decree Law no. 51/2017, 15 November - following the implementation of the International Business Centre, sets the legal framework and requirements applicable to Duty-free shops and tax-free shops. VAT refunds shall be authorized to non-resident travelers in Cape Verde not staying in the country for more than 180 days and provided that the goods are effectively transported outside Cape Verdean territory and destined to personal use of the traveler.

Decree no. 8/2017, of 23 November – revises the Social Security convention entered into between Cape Verde and Portugal, extending its scope to the social protection regime applicable to public servants in Portugal and in Cape Verde.

Decree Law no. 57/2017, of 6 December - implements the international business center (IBC) and its respective legal framework, to promote and develop the investment in Cape Verde. Among other aspects, it is defined: (i) geographic areas of the IBC; (ii) formalities and other requirements for registration and licensing; (iii) list of activities covered.

Law no. 20/IX/2017, of 30 December – State Budget for 2018

Law No. 20/IX/2017, of 30 December approved the 2018 State Budget, which entered into force the 1st January 2018.

We would highlight the following tax measures:

• Special tax regime applicable to small and micro companies;
• Stamp Duty is no longer due on Corporate acts;
• The exemption on capital gains resulting from the disposal of equity interest and other instruments is extended to all resident companies or with a permanent establishment in Cape Verde.
• Approval of a Non-habitual Tax Resident regime (NHTR), applicable to individuals transferring their tax residency to Cape Verde, which is valid for a 10-year period to any taxpayer that has not been resident in Cape Verde over the last 5 tax years. Under the NHTR, active income (e.g. income from employment and self-employment) obtained in Cape Verde in connection with “high value added activities” – meaning, activities with a scientific, artistic or technical nature – is subject to a flat rate of 10%, whilst passive income obtained outside Cape Verde (e.g. capital gains, interest, pensions and rental income) is fully exempt in Cape Verde and this exemption applies irrespective of the taxation applicable at source (i.e. it is possible to achieve double non-taxation). To qualify as a tax resident under Cape Verdean domestic rules, an individual must: (i) spend more than 183 days in Cape Verdean territory; or (ii) own a dwelling that qualifies as a habitual residence in Cape Verdean territory on December 31st of the relevant tax year (regardless of the number of days effectively spent in Cape Verde). Eligible candidates must apply for the regime until the 31st March of the following year in which they materially became resident in Cape Verde for taxation purposes.

MOZAMBIQUE

Decree no. 51/2017, of 9 October 2017 - Implements the new Social Security Regulations. The following amendments should be highlighted:

(i) Clarification of the formalities to be observed by foreign individuals in order to be exempt from social security contributions in Mozambique;

(ii) Extension of the minimum contribution period, from 120 to 240 months for purposes of eligibility to elderly pensions;

(iii) Clarification of the taxable base for computation of the monthly social security contributions;

(iv) Individuals that doesn’t fulfill all the requirements to be eligible for a pension, may benefit from a reduced pension regime.

Decree no. 66/2017, of 23 November - sets the rules and procedures for regularization of Value Added Tax (VAT) borne in the acquisition of goods and services by taxpayers carrying out certain public projects. Under the aforementioned regime, the acquirers of goods and services may be allowed to pay the relevant invoices without VAT. A VAT Certificate will have to be issued for that purpose and filed by the supplier along with its VAT return.

Law no. 17/2017, of 28 December 2017 - A new Excise Duties code was approved by means of Law 17/2017, of 28 December 2017. The new code introduces several changes to the Excise Duties rates, including an increase of the minimum tax per liter applicable to certain alcoholic beverages which should now also take in consideration the alcoholic strength of the beverage. Reference to a minimum tax applicable to soft drinks is also inserted in the Excise Duties table.

The new code entered into force on 1 January 2018.

Law no. 18/2017, of 28 December 2017 - revises certain rates of the Customs Tariff Schedule and creates new tariff items applicable to beers.

Decree no. 78/2017, of 28 December 2017 - approves the new VAT Refund Regulations. The diploma details the procedures and deadlines to be complied by taxpayers when applying for a VAT refund and includes specific rules applicable to exporters. In addition, the VAT Refund Regulations provide for a special regularization regime applicable to the oil and mining sector. Under this regime, oil and mining companies - in the production stage - are allowed to settle its invoices without VAT provided that among other requirements its exports exceed 75% of the annual turnover of the precedent year. A regularization document will need to be issued in order to allow suppliers to correct the VAT initially charged.

Personal Income Tax Code – Law 19/2017 – Among other minor changes, republishes the Personal Income Tax Code and clarifies that individuals obtaining exclusively employment income are dismissed from submitting the annual income tax return.

SÃO TOME AND PRINCIPE

Decree-Law no. 18/2017, of 28 December – sets the regulations for purposes of application of the Investment Code, setting applicable formalities, requirements, documentation required and deadlines for submission of investment projects. These new regulations also approve the investment forms to be filled and submitted with the competent authorities.

All information contained herein are of general nature and for informational purposes only. It does not therefore intend to be nor shall be construed as legal advice on any of the matters addressed.