The Presidential Decree No 195/15, of 10.7.2015, approved the Regulation on the tax incentive scheme, registration, application, evaluation and monitoring of projects planned within the framework of Law on Sponsorship.
This Regulation applies to any legal person, public or private, with a head office and domicile in Angola.
Patrons and Beneficiaries
For tax purposes, patrons shall apply for registration at the Ministry of Finance, prior to the first act of liberality.
For statistical purposes, beneficiaries shall apply for registration at the Ministerial Department in charge of the sector of activity.
The patrons with a head office and domicile abroad wishing to purchase goods and equipment for the practice of acts of liberality towards Angolan entities, may request at the Ministry of Finance the granting of tax benefits, if all of the following conditions are met:
- Registration at the Directorate-General for Taxation as a patron;
- Documentation on the existence of double taxation agreements; and
- Declaration of suitability of the public institution supervising the respective sector of activity.
This Regulation establishes the following obligations of the patrons:
- Report to their Tax Office about any act of liberality;
- Providing proof of organized accounting scheme, supervisory boardor an independent auditor of Angolan nationality or residente in Angola; and
- Decide autonomously about the projects on which they want to carry out their social responsibility practices.
The obligations of beneficiaries are as follows:
- Monitoring the course of the project;
- Inform the public administration body in charge of their area of activity on any act of liberality they have received, by identifying the patron, the project and description of the act of liberality;
- Being accountable to the patron and to the Evaluation Commission for the physical and financial implementation of the projects; and
- If they are subject to tax collection, the value of the acts of liberality received shall be included in their annual tax return.
The acts of liberality can take the form of cash benefits or the provision of services. The acts of liberality in kind or provision of services shall be quantified for calculating the tax benefits, being also subject to evaluation. The value of the cost duly documented by the patrons serves as a basis for this purpose. The donations in cash or in kind (provision of services), whose objectives are in line with the program and sectoral priorities under the Regulation, are of importance for tax purposes.
Areas of sponsorship
Sponsorship may cover different areas, including:
- Social Sponsorship;
- Cultural Sponsorship;
- Sports Sponsorship;
- Youth Sponsorship;
- Educational Sponsorship;
- Environmental Sponsorship;
- Scientific and Technological Sponsorship;
- Health Sponsorship; and
- Information Society Sponsorship.
It is a document consisting of projects from legal persons of private law, provided that they are not beneficiaries of support from public entities in the same period, and public projects of the central and local government bodies not included in the general State budget, made available by Ministerial Departments and with the approval of the President, for the patrons´s assessment.
Project assessment and approval
The projects are presented in the financial year preceding the year of the project implementation, for the period from 1 July to 30 November of each year. Each beneficiary must submit a maximum of three (3) projects in each financial year. The projects are kept in local government bodies in charge of the respective sectors., which shall submit them to the respective Ministerial Departments within fifteen (15) days.
Social and tax benefits and incentives established in Law 8/12 of 18 January (“Law on Sponsorship”) shall be given to the patrons who carry out any act of liberality.
- Special mentions and Merit Awards shall be given to the legal persons promoting actions classified as acts of liberality;
- Publication of such acts in the national media by the beneficiaries;
- Free access to the beneficiary's premises by persons appointed by the patron, if applicable.
- Exemption from all taxes on the results achieved by their social activity;
- These exemptions focus on the Municipal Property Tax and Industrial Tax.
Deduction of the Liberalities
The annual volume of acts of liberality is declared in the Industrial Tax. It must be fully documented and available upon request. Acts of liberality practiced by the patrons are ascertained by the Directorate-General for Taxation in relation to the following deductions:
- Up to the limit of 40% on the total amount of expenses or losses on the financial year related to the taxable amount;
- If the beneficiaries are employees of a legal person and members of household, the deduction limit is 30%; and
- 1% for the acquisition of works of art or any other form of artistic production produced by Angolan artists.
Both the patrons and the beneficiaries shall, by the end of February, prepare a report on the resources available in the previous year and concerning certain areas.