Development Zones
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- Published on Friday, 20 May 2011 06:37
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With record oil prices and production, the GoA has rightfully seized this opportunity to diversify the country's economy and promote private investment. the GoA has attempted to accomplish this challenge through policy reforms, particularly, the establishment of development zones. There are early indications that these reforms have had some success in improving the business climate and increasing investor confidence in the country. To this point, Angola has received lines of credit from China, Brazil, Portugal, Germany, Spain, France and the E.U. GoA is offering incentive packages based on development zones.
GoA has identifies these development zones as eligible for financial incentives:
* Zone A- Province of Luanda, the capital-municipalities of the Provinces of Benguela, Huila, Cabinda and the Municipality of Lobito
* Zone B- Remaining municipalities of the provinces of Benguela, Cabinda and Huila and the Provinces of Kwanza norte, Bengo, Uige, Kwanza Sul, Lunda Norte and Lunda Sul
* Zone C- Provinces of Huambo, Bie, Moxico, Cuando Cubango, Cunene, Namibe, Malanje and Zaire
Development zones offer opportunities for wide range investments. Targeted industry sectors are selected based on the abundant natural and human resources available in each zone. Government incentives vary in accordance with the province in which the investment is made.
Industrial Tax Exemption Regime
- 15 years exemption - Investors will be free from paying tax on the capital invested, for a period of 15 years, when they invest in the provinces of Huambo, Bie, Moxico, Kuando Kubango, Cunene, Namibe, Malanje and Zaire.
- 12 years exemption- Investors will be free from paying tax on the capital invested, for a period of 12 years, when they invest in the provinces of Kwanza Norte, Kwanza Sul, Bengo, Uige, Lundas and inland municipalities of Benguela, Cabinda and Huila.
- 8 years exemption- Investors will be free from paying tax on the capital invested, for period of eight years, when they invest in the provinces of Benguela, Cabinda and Huila, and in the muncipality of Lobito.
