INVESTOR’S GUIDE TO ANGOLA

Table of contents 1. Introduction ___________________________________________________2 2. Angola: Characteristics and economic data ________________________3 2.1 General information ___________________________________________3 2.2 Economic Indicators___________________________________________3 2.3 Commerce and Investment Opportunities in Angola __________________4 3. Angola’s Legal System __________________________________________5 3.1 Private Investment Law ________________________________________6 3.2 Incentives __________________________________________________10 3.3 Public-private Partnerships ____________________________________12 3.4 Corporate Law ______________________________________________13 3.4.1 Incorporation ____________________________________________14 3.4.2 Local forms of representation _______________________________16 3.5 Real Estate Investment _______________________________________18 3.6 Visas______________________________________________________19 3.7 Labour Law_________________________________________________22 3.8 Tax Context ________________________________________________27 3.9 Money Laundering ___________________________________________30 3.10 Specific Schemes: Oil and Diamonds ___________________________31 3.11 Intellectual Property _________________________________________33 3.12 Dispute Resolution __________________________________________35 4. Privileged Relations with Other Countries _________________________36 4.1 Portugal ___________________________________________________36 4.2 Brazil _____________________________________________________37 4.3 India ______________________________________________________37 4.4 China _____________________________________________________37 4.5 United States of America ______________________________________38 4.6 South Africa ________________________________________________38

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1. Introduction
Over the past few years, Angola has shown very attractive economic growth rates and is currently the greatest pole of concentration and attraction of investment in the African continent. Given the economic potential and the investment opportunities that the Angolan market offers in various sectors of activity, it becomes vital for those who decide to invest to know the country’s current legal framework.

The main attraction of Angola for foreign investors is particularly focused on its existing riches such as oil and other natural resources, and infrastructure rehabilitation.

To this extent, this Investor’s Guide is primarily intended to convey some general and summary information regarding the current legal environment in Angola, stress being laid to the areas of Private Investment, Commercial Law, Tax Law and Labour Law.

The information conveyed in this Investor’s Guide does not dispense with the respective legal advice on each specific investment project.

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2. Angola: Characteristics and economic data

2.1 General information

Official Name: Republic of Angola Total area: 1,246,700 Km2 Population: 18.5 million inhabitants Official Language: Portuguese Capital: Luanda (5.5 million inhabitants) Other Important Cities: Cabinda, Huambo, Lubango, Lobito and Benguela Currency: Kwanza (KZ) Date of Independence: 11 November 1975

International Relations: African Union – since 1975 ONU – United Nations Organization – since 1976 IMF – International Monetary Fund – since 1976 World Bank – since 1989 WTO – World Trade Organization – since 1996 CPLP – Community of the Portuguese Speaking Countries (founding member) – since 1996 OPEC – Organization of Petroleum Exporting Countries – since 2007

2.2 Economic Indicators
Angola is one of the economies with the greatest and fast-paced growth across the world, as it has become the largest oil producer in sub-Saharan Africa, implemented economic policies addressed to private investment, and benefitted from a privileged geographical location. To this extent, Angola is a fairly attractive market for investors.

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e) Telecommunications. the country has a huge potential to develop a diversified economy. The non-oil sector is expected to grow by 8. This projection is justified by the average output level expected (which is an approximate indication of its maximum production capacity – 2 mbd). the country needs to increase initiative and competitiveness of its private sector. Angola will show a real economic growth of 7. Oil and diamonds account for nearly 99% of Angola’s exports. 2. which are the key objectives of the Angolan government. f) Tourism and g) Energy. b) Minerals.5%. the Angolan government recognizes the importance of attracting private investment. port and airport infrastructure.The International Monetary Fund (IMF) expects that. In order to boost the economy and promote employment. not only to contribute to diversify the economy. rail. namely regarding the production and export of agricultural products. but also to reduce the Angolan economic dependence on volatile sectors such as oil and diamonds and has therefore implemented legislative measures towards creating a more attractive environment for investment. industrial products and services. d) Agriculture. 4 . To this extent.8%. d) Banking. in 2011.3 Commerce and Investment Opportunities in Angola Angola is undeniably rich in oil and mineral reserves. c) Civil construction and road. Nevertheless. The sectors of activity which provide the best business opportunities are: a) Oil. particularly diamonds and iron ore. directly depending on the oil sector.

3. private property. significant amendments have been brought about. whose legislation is mostly codified and legally established. The Constitutional Court deals exclusively with the examination of constitutionality matters. Angola’s Legal System The Angolan legal system is based upon the Portuguese civil law and customary law. the right to environment and intellectual property. Compared to the previous version. there are two extremely important diplomas in Angola: The Petroleum Act and the Diamond Act. it should be mentioned that the Angolan Civil Code corresponds to the original version of the Portuguese Civil Code of 1966. It is typically shaped by the Romano-Germanic law. Without direct correspondence to the Portuguese legal scheme. For instance. as it has become wider by including free enterprise. especially under the scope of the Fundamental Rights. which operate at the trial level. The current Constitution of the Angolan Republic was published in the Official Journal of Angola on 5th February 2010. The judicial system includes municipal and provincial courts. while the Supreme Court operates at the appellate level. 5 .

The new Law does not apply to investment projects approved under the previous legislation. applies to projects that are still outstanding from the date of entry into force of the diploma.000. 20/11. It.attracting larger investments (preferably in the structural sectors of the Angolan economy). 6 . it is necessary to obtain a priori authorization of the National Agency for Private Investment (ANIP). however. namely in terms of profit and/or dividend repatriation. which is responsible for conducting the Angolan policy regarding private investments. strategically redefines the principles regarding the already existing scheme and the procedures needed for access to the benefits and incentives granted by the State.1 Private Investment Law The new Private Investment Law (PIL). approved by Law No.3.000. The purpose of the new diploma is to adapt more effectively the tax incentives granted to investors and the socio-economic impact of the investments made in the country and to adjust the system to the new constitutional reality of Angola and to the tax reform that has been underway. namely aiming at: . To put a private investment into practice in Angola. .avoiding investments below USD 1.00 into the country. per project and per investor. This new law brings about significant changes to the private (internal and external) investment scheme. of 20th May.

7 . This reinvestment may take advantage of new benefits. e) Incorporation of technologies and know-how. Submission and Approval Stages: 1st) Submission of Proposal to ANIP The draft investment proposal to be submitted to ANIP should include: i) all supporting documents of legal. all or part of the income generated in virtue of an external investment previously made and already implemented under the framework of ANIP. in any submitted draft investment proposal. d) Import of machinery. within the Angolan territory. This new Law established a unique procedural mechanism for the implementation of private investments in Angola: the contractual regime. and the reinvestment commitment ab initio may help grant larger incentives to the initial investment. financial and technical characterization of the investor and the investment (feasibility study. b) Investment of liquid assets in foreign currency bank accounts held by nonresidents in Angola. This new regime requires the existence of negotiations between the potential investor and the relevant authorities of the Angolan state. c) Investment of funds under external reinvestment. accessories and other tangible fixed assets. the a priori declaration regime was abolished. which consists in applying. equipment. economic. The main operations of foreign investment include: a) Transfer of funds from abroad.The new Private Investment Act has also introduced the concept of “External Reinvestment”. Thus.

by the Board of ANIP (taking into account the binding opinion to be delivered by the Finance Ministry. as head of Government).evaluation of the suitability of access to incentives and aids. within 15 days (if the proposal is approved). 8 . within 15 days. after a priori evaluation of the Council of Ministers. implementation schedule. ii) environmental impact assessment study (if applicable). as regards the tax incentives to be granted). within 5 days: a) Investments up to USD 10 million: approval. within 30 days. c) Investments over USD 50 million: the Head of State may set up and define the composition of an ad hoc CNFI in order to negotiate with the potential investor and then to deliver a final decision. by ANIP. among others). 2nd) ANIP sends notice for proposal rectification (possible) 3rd) Investor has 15 days to reply 4th) ANIP accepts offer 5th) Beginning of the general deadline of 45 days for negotiation (extendable for more 45 days) 6th) Beginning of the general deadline of 30 days to evaluate the proposals and negotiation with the Negotiation Committee for Aids and Incentives (known as CNFI) 7th) CNFI issues final opinion 8th) Delivery of final opinion to the approval body. b) Investments over USD 10 million: approval. 9th) Adoption or rejection of the proposal 10th) ANIP issues the Certificate for Registration of Private Investment (known as CRIP). by the Head of State (the President of the Republic of Angola.

the major innovation brought about by the new regime relies upon the exceptional character of incentive/benefit granting procedure. transport infrastructure. contributions and other import duties. water. health and education. The tax and customs benefits show specific features according to each Development Zone for the purposes of maximum time and value limits: a) ZONE A (Province of Luanda. The decision-making power of granting tax benefits is also the Finance Minister’s responsibility. to be created by the Angolan government.For the purpose of granting incentives to investors. c) tax credit. d) exemption/reduction of rate of tax. the capital-municipalities of the Provinces of Benguela. Cabinda and the Municipality of Lobito). telecommunications. Industrial Tax – from 1 to 5 years. without prejudice to the ANIP competence in following up the whole process. b) accelerated depreciation and reincorporation.. max. manufacturing industry. the projects must be carried out in priority sectors such as agriculture. namely: a) deductions to taxable income. The investors may have access to tax and customs incentives and/or benefits. In this regard. fisheries. given that it is no longer automatic. energy. now depending basically upon an analysis of each investment project. Huíla. 9 . indiscriminate and unlimited in time. special economic zones or off-shores. social housing. as well as being located at development poles.

North Lunda and South Lunda).. c) ZONE C (Provinces of Huambo. the priority sectors are as follows: .Capital Gains Tax – from 1 to 3 years. max. Industrial Tax – from 1 to 10 years.Manufacturing industries. 10 . 3. max. Zaire. special attention should be paid to the exemption from or deduction of the Industrial Tax. South Kwanza.. regarding the profit arising from private investment. The tax benefits regarding the Real Estate Transfer Tax (Sisa) translate into the exemption from or percentage deduction of the payment of this tax. As regards the granting of investment incentives.. Cabinda and Huíla and Provinces of North Kwanza. . Moxico. Cunene. . Capital Gains Tax – from 1 to 6 years. Bengo and Uíge). max.. which varies according to the investment Development Zone. up to 50%. Bié. Namibe.Technology and modernization of the respective industry. b) ZONE B (remaining Municipalities of the Provinces of Benguela.2 Incentives Among the various possible incentives. Kuando-Kubango.Agriculture production. max. max. due to the acquisition of land and real property used in the project and that must be requested from the relevant tax service of the respective Development Zone. Industrial Tax – from 1 to 8 years. Capital Gains Tax – from 1 to 9 years. Malange.

to be effected after the implementation of the project.. port and airport infrastructure. .Hospitality and Tourism. b) proceeds of the settlement of investments (including capital gains). According to criteria that refer to the previously identified Development Zones. c) amounts due that are deemed private investment (arising from acts and contracts).Social Housing. Energy and Water. should observe the following aspects: a) ZONE A .Road. railroad. After implementing the project and giving proof of payment of the due taxes.Health and Education.Investments below USD 10 million: capital repatriation is only possible 3 years after project implementation effectively commences. d) proceeds of indemnities. telecommunications. 11 . . the investor is thereby authorized to repatriate: a) distributed dividends/profits. . the repatriation of capital. . . e) royalties.Investments equal to or larger than USD 10 million up to USD 50 million: capital repatriation is only possible 2 years after project implementation effectively commences.Fishing and derivatives industry.

these regulations are a further element to foster private investment in the country.Capital repatriation may be effected 2 years after project implementation effectively commences.b) ZONE B .3 Public-private Partnerships The legal framework of the Public-private Partnerships in Angola. c) ZONE C . port. b) energy sector (construction and maintenance of small hydro-plants.Investments below USD 5 million: capital repatriation is only possible 2 years after project implementation effectively commences. of 14th January. In terms of economic policy. The provisions of this Law do not apply to public works contracts. power stations and other energy infrastructure projects). The most important sectors of activity under the public-private partnerships include: a) road concessions (rehabilitation and management of the construction of approximately 8000 km of paved roads). entered into force on 15th March 2011. sanitation and sewerage systems). 2/2011. 3.000. d) farming sector.00 and 12 . giving consideration to the decentralization of management of difference sectors of activity.000. c) infrastructure (airport. public-private partnerships below Kz 500. which was established by Law No. public procurement contracts.

In turn. achieved. follow-up. the private partner will be responsible for financing and managing the activity agreed upon. the Local Authorities. supervision and amendment and call for proposals. in fact. 3. rules for approval. in order that the public interest purposes are. namely as regards sectoral programmes.4 Corporate Law The Companies Act (Law No. The public entity will be vested with the responsibility of following up and monitoring the partnership purpose. as well as public corporate entities. public partners are the State. Under the provisions of the legal diploma. of 13th February). bodies with responsibilities in this area. provides for and governs five types of companies: a) partnerships b) private limited companies c) public limited companies d) limited partnerships e) limited partnerships with a capital stock 13 . 1/04. The repatriation of risk between the public and the private partner will go through regulation in terms of the contract. in which the public partner does not take on obligations on or after the contract expiry date. regulated by the law. the Funds and the Autonomous Services.goods and services supply contracts whose term is equal to or greater than 3 years. The evaluation of public-private partnerships is subject to a specific procedure.

a minimum number of two partners (subscribers) are required. The capital stock is divided into quotas and each subscriber represents a portion of the capital stock.”) and public limited companies (“S.”). the minimum number of 5 shareholders is required and the capital stock is divided into shares. The minimum value of each share cannot be lower than USD 5. for up to 3 years. none of the quotas shall be lower than USD 100.00 (expressed in Kwanzas). for up to 3 years. 3. which is updated according to the fluctuation rate of the Angolan currency. 1st – Definition of main activity and business name The investor wishing to set up a company in Angola should first obtain the business name certificate at the Ministry of Commerce. In public limited companies.Taking into consideration the very complex nature of limited companies and the almost lack of patrimonial autonomy of partnerships. The contributions may be deferred up to 70% of the capital stock.A.00 USD (in the equivalent amount of Kwanzas). which will be approved 14 . The capital stock of public limited companies shall not be lower than USD 20.000.000. the corporate types which are more attractive for economic agents that intend to operate in Angola are private limited companies (“Lda.1 Incorporation Let us look at each step of incorporation.4.00. The initial subscriptions in cash may be deferred up to 50%. The minimum amount of the legal capital stock for private limited companies is of USD 1. In private limited companies.00 (expressed in Kwanzas). In addition.

The capital stock amount may only be handled prior to the business registration and may only be used to cover incorporation expenses or other type of authorized expenses and expressly set forth in the memorandum of association.by the Central Business Name File. 5th – Trade register at the Trade Registry The company shall be registered in the relevant jurisdiction of the Trade Registry. 15 . 3rd – Celebration of public incorporation deed The company’s incorporation instrument translates into the celebration of a public incorporation deed with an Angolan Notary Office. the capital stock shall be deposited with a banking institution duly authorized to operate in Angola. within 90 days after incorporation. 4th – Publication of company’s statutes in the Official Journal The incorporation shall be published in the 3rd Series of Angola’s Official Journal by way of a request addressed to the ‘Imprensa Nacional’. the National Institute for Social Security and the National Statistics Institute. 2nd – Capital stock deposit As a general rule. The business names should reflect the intended business and should not create confusion with other previously registered companies/businesses. 6th – Registry at other public entities The company shall be registered at the relevant tax service. by means of which its statues are adopted and its corporate bodies appointed.

remain unregulated. which has facilitated the incorporation.7th – Commercial Warrant In order for the company to be able to pursue its activity. 7/00.4. of 3rd February created the so called ‘One-stop shop’ for companies. change and winding-up of companies and all related acts. despite its own corporate capacity and autonomy. There has been a unanimous agreement that an Angolan branch of a foreign company is qualified as a legal. which operates as its local extension. 3. The administration of an Angolan branch of a parent company is. Currently. some aspects regarding their functional structure. namely their corporate bodies and responsibilities. it should obtain the respective commercial warrant at the Ministry of Commerce. as a general rule. there may be additional formalities such as getting the authorization to carry out external trade or obtaining specific permits. non-autonomous entity of the parent company. Note: Decree No. in there are neither corporate bodies nor representation bodies. In virtue of the activity carried out by the company. 16 . The parent company shall be held unlimitedly liable for the obligations taken on or imputed to the branch. entrusted to an attorney. this service is only available in Luanda.2 Local forms of representation Branches The Angolan Companies Code does not establish a special legal scheme addressed to branches. Thus.

namely by following up its business there. the representation office cannot practice legal acts and receive national or foreign currency revenue.Representation Offices Decree No. solely for the purpose of covering their own expenses. The representation office is responsible for catering for the interests of the entity that it represents in Angola. Note: The representation offices of financial institutions are regulated by their own legal scheme. 17 . 7/90. Nevertheless. in fiscal and exchange terms. of 24th March establishes the set-up of representation offices by non-resident entities in Angola.

c) paying the conveyance tax (IMT) and the stamp duty. and different surface rights may be set up. are not susceptible to appropriation or subject to private rights. towards individuals or private entities. The Land Law is applicable to all urban and rural properties. 18 . which requires: a) getting an updated ownership certificate. known as Land Act (Lei das Terras). and the general transmission regime. of 9th November. whether national or foreign.3. or rights under concession. b) getting a legal description certificate or a tax certificate issued by the relevant tax service. The main rights on property are as follows: a) Right of Property b) Horizontal Property c) Usufruct d) Surface rights Acquisition of the Right of Property The acquisition of the right of property is only valid by means of a public deed and is subject to various legal obligations of different nature. including the originating State property as well as any subsequent land rights that may exist. by their nature. 9/04. The urban areas that have recently been developed are broadly owned by the State. establishes the general basis of the property regime.5 Real Estate Investment Law No. except for public domain properties or other properties that.

g) applying for definitive registration from the relevant Tax service. 19 .d) executing the deed of transfer at a Notary’s Office. given the potential of professional development of collective real estate property and capital attraction into the market. 3. which is responsible for granting the respective registration. The economic agents and investors have high expectations regarding these new mechanisms. f) receiving definitive registration from the Land Registry Office.6 Visas There are different types of visas (whether personal or work/company visas) to enter and stay in Angola. Real Estate Investment Funds The creation and management of real estate investment funds in Angola is regulated by the Securities and Exchange Commission (an authority that is subject to the supervision of the Ministry of Finance). ensuring the proper functioning of the market and the necessary protection of investors. such as: a) Ordinary Visas These visas are destined to authorize the entry in Angola for family or business development reasons. The first Angolan real estate investment fund was created in 2008. and exclude the performance of any paid activity in the country. e) applying for the provisional registration at the Land Registry Office.

allowing the traveler to enter the country for several times until the expiry of the employment contract (nevertheless it does not allow establishment of residence in Angolan territory).00 or the equivalent in convertible currency. for each day of permanence in the Angolan territory. as from the date of issue. e) have no criminal record. d) be mentally and physically fit.Ordinary visas are requested from the Angolan Consulates of the country of origin and are valid for 60 working days. mining and civil construction sector – work visa (type C). or give proof by any appropriate means that board and lodging are guaranteed. technical or scientific qualification. which can be extended at the Angolan Migration and Foreigner Service. c) have an employment contract or a confirmation of an employment offer. They allow every traveler to stay in Angola for 30 days. industry. The Wok Visa is valid for 60 days as from the date of issue. b) trade. and f) have means of subsistence in the amount of USD 200. b) Work Visas This type of visas is destined for non-resident foreign citizens who intend to perform a paid activity in Angola and who: a) have reached the age of majority. maritime and aeronautics – work visa (type D). b) have professional. 20 . The Wok Visas are also divided into different categories. for two more times (30-day permanence for each extension granted). fisheries. c) other sectors – work visa (type F). according to the sectors of activity: a) oil. proven by medical certificate.

The 90 days of permanence can also be spent on a consecutive or nonconsecutive basis. This type of visa is issued by the competent Angolan consulates established in Lisbon and Oporto. when applying for an extension of these visas. being identified as investors. by way of issuing short duration visas.c) Privileged Visas This type of visa allows foreign citizens wishing to implement and make investment proposals. It should be noted that both the criteria for granting visas and the paperwork needed for requesting these visas go through to regular revision. 21 . Long duration Work Visas shall be issued 30 working days after they are requested. which has already entered into force. In this respect. a deadline of 5 working days shall be applied. as from the date they are required. from now on. multiple entries in the country are now allowed. both countries celebrated a bilateral protocol in September 2011 to facilitate visa issuance with the purpose of making migratory routes and travel between both countries flexible. within 8 working days. to enter and stay in Angola under the provisions of the Private Investment Law. permanence and exit flux of Portuguese citizens in Angola. and given the substantial entry. In accordance with this protocol.

the recruitment of disabled persons or the execution. There is also an agreement type that is worthy of note: the group agreement. Fixed terms agreements are required in written form and can only be celebrated in certain situations. labour agreements are indefinite and fixed-term agreements. which can only cease according to the legal standards for that purpose. direction and supervision of civil and/or public constructions). The employer recruits a group of employees.7 Labour Law General Labour Law The General Labour Law (Law 2/00. Indefinite agreements are not required in written form and both the employer and the employee do not establish a fixed term for the end of the agreement.3. This type of agreement may be a simplification mechanism of the recruitment process for the companies wishing to operate in Angola. 22 . of 11th February) governs the labour relations in Angola. and one of them is bound contractually as a representative of the group. Employment Agreement Types Typically. with a view to satisfying the temporary needs of the company and as long as is strictly necessary for meeting those needs (such as the performance of occasional tasks.

Rest periods should last between 1 and 2 hours. However. and the employees should not perform their professional activities for more than 5 consecutive hours. but there are some exceptional situations in which these limits can be exceeded (for instance. This exemption shall not affect the weekly mandatory and supplementary rest period and the respective additional remuneration. those who hold supervisory functions and those who perform their professional activity outside of a fixed location) may be exempt from a work schedule. in its absence. On the other hand. in situations of natural calamity). except for the shift work. in cases where the employer adopts shifts or modulated or variable timetable regimes. natural calamities or other abrupt situations or when temporary and unexpected atypical workloads occur. in cases where a recovery schedule is in due course or when work is intermittent or of simple presence. corresponds to one extra daily hour of work. which may be fixed by any labour collective regulation scheme or. The general limits of supplementary work are the 2 daily hours. such as prevention or elimination of accidents. Certain employees (those who hold management and executive positions. those who hold jobs based on trust.Duration of Work The normal daily working period is 8 hours maximum and the weekly duration cannot go beyond 44 hours. the usual daily timetable can be extended up to 10 daily hours in the above situations. the 40 weekly hours and the 200 annual hours. The employer can only make use of supplementary work when it needs to respond to occasional and relevant circumstances of increased work. 23 . it can be extended up to 54 hours.

Supplementary work gives employees the right to an overtime addition of 50% of their normal wage for the first hour. the outcome of the work or both. Wages In Angola. through any of the following modalities: a) Sole guaranteed minimum wage. each equivalent to 50% of a month’s wage. the labour agreement may end over different causes: a) Objective causes (which are beyond the parties’ control) 24 . variable or a mixture of both. which is fixed every year. which corresponds to 22 working days per year. b) National minimum wage per major economic groups. depending on the length of work. There is an amount that corresponds to the national minimum wage. Official holidays are considered normal working days for the purposes of payment of wages. The employees hired for a fixed term. Holidays Employees have the right to a holiday period. Termination of Labour Agreements In Angola. Employees are also entitled to a vacation bonus and a Christmas bonus. whose initial period or agreement renewal does not exceed one year have the right to two vacation days for each complete working month. wages can be fixed. Night work entitles employees to receive an addition of 25% above normal daytime wages. up to 75% when the employee works the 30 monthly hours of supplementary work. c) National minimum wage per geographical area.

the labour agreement may be terminated due to expiry. 25 . at any time. retirement. Just cause may be grounded on facts charged to the employees (namely lack of payment of wage) or other motives (compliance with legal obligations). technological or structural reasons. within a period of 3 months. by mutual agreement and in the conditions of valid written clauses. Collective dismissal shall always occur as a result of the extinction of work posts for economic. in fixed-term agreements. successively though. fall into the scope of the objective causes that determine the expiry of the labour agreement. bankruptcy or winding-up of the company or the termination of activity. c) Termination by unilateral decision of the labour agreement The unilateral decision to terminate a labour agreement may be established upon the initiative of both the employee and the employer. if the labour agreement has a duration of less or more than 3 years. technological or structural motives). permanent incapacity. Individual dismissal may be grounded on just cause (facts charged to the employee) on objective causes (proven economic. involving the dismissal of 5 or more employees.Death. at 15 or 30 days’ notice. and the notice is extended to 30 or 60 days in the case of middle and senior management. Also. The employee may also terminate his/her labour agreement. The employer may terminate the agreement grounded on individual or collective dismissal. b) Parties’ decision By voluntary agreement of the parties. which makes it clearly impossible to maintain a labour relationship. thereby requiring specific formalities and procedures. the employee may terminate his/her labour agreement with or without just cause.

Foreign employees residing in Angola shall abide by the general standards included in the General Labour Law. of 25th November. The regime established in the General Labour Law shall apply to aspects concerning working time. shall abide by special regulations and. who do not reside in Angola. are physically and mentally apt and do not have any criminal record. In turn. This diploma has been recently regulated by Presidential Decree No. hold proven qualifications. which establishes the equivalent in terms of rights.. 2/07.e. state-owned companies. Within the scope of the oil sector. Labour agreements of non-resident foreign citizens are required in the written form and shall expressly include the reference that the employee will return to his/her homeland after the termination of the respective labour agreement (minimum of 3 and maximum of 36 months). 26 . the recruitment of foreign employees is only possible if a priori authorization is given by the Ministry of Petroleum. of August 31st. establishes the Legal Scheme for Foreigners in the Republic of Angola. Thus. foreign employees. as long as they are adults. mixed companies or cooperatives. between Angolan citizens and foreigners who are within the territory (i. 108/11. by the previously mentioned General Labour Law. guarantees and duties. foreign employees who have professional. discipline and termination of the labour agreement.Foreign Employees in Angola Law No. the right to work and freedom of association to trade unions and professional organizations). technical or scientific qualifications in areas in which Angola is not self-sufficient. The legal scheme allows these employees to celebrate a labour agreement with private companies. may be recruited to perform their activity for a definite period of time. in addition.

allowances. according to the category of the business. 27 . Employees who perform their activity in Angola for a temporary period and give proof of paying social security contributions in another country. Taxation is therefore made gradually. according to the size of the taxable legal person. forestry and cattle breeding activities (at a rate of 20%) and that generate profits in Angola. The Industrial Tax also includes a Minimum Profit Table. Industrial Tax Angola does not have a single general corporate income tax. bonuses. and ranges from 2% to 17% (marginal rates). The Industrial Tax is divided into three taxation regimes (A. may choose not to be subject to pay contributions in Angola. depending on the labour income obtained in Angola. the location and the branch of activity. B and C).8 Tax Context Labour Income Taxation and Social Security Contributions The rate to be charged to employees and managers and other members of the corporate bodies of legal persons.3. which correspond to a rate of 8% payable by the employer and 3% payable by the employee. is progressive. Such income is subject to withholding tax. Salaries. The Industrial Tax applies to companies and legal persons that perform commercial and industrial activities (at a rate of 35%) or agricultural. commissions and other extra income are subject to Social Security contributions.

and it is stated and paid on a monthly basis. distributed profits and royalties (with taxes of 15% or 10%). The new rates came into force in 2011. credit opening and default interest. the Consumer Tax is only required when the sale has been made to the end consumer. as long as they are subject to the Industrial Tax. Among other entities. the consumption of water. notwithstanding other taxes. energy. telecommunications and hospitality or related services are subject to Consumer Tax. defined by law regarding a wide variety of consumption types. Nevertheless.00. It is aimed at reducing the taxable load in the Angolan real estate market and promoting its dynamic nature. Leased buildings are subject to a general rate of 25% and nonleased buildings to a general rate of 0. the import of products. The general tax rate is currently 10%. Consumer Tax In Angola.000. the State. Credit institutions are exempt from this tax regarding loan arrangement interest.Capital Gains Tax The Capital Gains Tax concerns income earned from financial applications. 28 . the manufacturing of products (with a few exceptions).5% when the property value does not exceed Kz 5. the Public Institutes and the Associations that hold a public interest body status are exempt from this tax. following the amendments to the Industrial Tax Code. Urban Real Estate Tax Income from urban buildings located in Angola is subject to the Urban Real Estate Tax. namely interest.

finally.00. d) fixed value works contracts – at the rate of 4/thousand over their value. amortization or any other facts. as a result of that. Stamp Duty The Stamp Duty is paid over acts. facts.00 and Kz 600. which has real estate assets. which apply to natural and legal persons that perform this activity and that are not subject to the Income Tax.Real Estate Transfer Tax The Real Estate Transfer Tax (Sisa) is paid over the transmission value of the real estate located in Angola. e) credit opening operations through private written agreement or public deed – at the rate of 2/thousand over its value. transmissions of governmental concessions for the operation of industrial companies and. after giving proof that the acquisition of the shareholdings was chiefly aimed at acquiring real estate assets. by way of acquisition. f) bank guarantees – at the rate of 3/thousand of their value. documents. the acquisition of capital stock in any incorporated company. contracts and operations and is charged at a variable rate. 29 . b) leases for commerce or industry – at the rate of 10/thousand over the contract value. Taxation on Construction Works There is a special taxation regime regarding construction works contracts. The Real Estate Transfer Tax is currently fixed at 2%. as well as leasing situations for 20 or more years. when. such as: a) insurance policies – between 1% and 5% of the premium value. according to the transaction value at issue. some of the shareholders hold. c) powers of attorney – between Kz 10. 50% or more of the capital stock.

15% over the final value. under the terms that follow: a) oil production tax. c) oil transaction tax. of 9th July. b) oil income tax. – 10% over the contract value. casinos and liberal 30 . pension fund management companies. e) contribution to train Angolan qualified staff.0 and 4. Mining Industry tax Taxation on Mining Industry is organized as follows: a) Profit taxation (Industrial Tax: the highest rate stands at 40%). repair. b) Mining royalties tax (royalty: taxes between 2% and 5%).9 Money Laundering Law No. improvement. Taxation on Oil Activities Oil-related activities are subject to a special taxation scheme. 12/10.0 per Km2). currency exchange dealers. This diploma imposes various requirements on credit institutions. regulates the measures of fight against money laundering and terrorism financing. insurance companies.The rates are as follows: a) Real estate construction. 3. conservation. c) Taxation according to the license (surface rate: between USD 1. financial companies. b) Other cases. d) surface rate.

. In January 2009 the Petroleum Operations Procedures Document. 04/10. among others) in the performance of their activities. Stress should be laid on the duty to inform the National Bank of Angola whenever one knows of or suspects that there was or there is in progress an event susceptible of embodying the practice of the crime of money laundering and terrorism financing. which shall be issued by the Angolan Government. Prospection License Oil-related operations require an oil prospection or concession license. but does not apply to crude oil refining. Chartered Accountants.P. out of the scope of an exploration license. defines the oil prospecting. Statutory Auditors. storage. Nevertheless. 3.10 Specific Schemes: Oil and Diamonds Oil Sector The Petroleum Activities Act (Law No. of 12th November).e.professions (i. should join SONANGOL E. assessment and production activities in Angola. by way of the incorporation 31 . distribution. the Prospection License does not grant its holder any right of preference or exclusiveness regarding the area that is object of the license. The national or foreign entities wishing to perform this activity. commercialization operations. The Prospection License grants its holder the possibility of carrying out operations with a view to potentially exploring a certain area (location of oil deposits). transport. The license is valid for a period of 3 years and can be extended. which applies to onshore and offshore oil-related operations.

Oil Concession Oil concession is regulated by Decree No. As a general rule. 1/92.P. with no compensation. all instruments. are governed by Law No. The rights regarding these activities shall be exclusively exercised by the National Diamond Company (ENDIAMA. 16/94.. of 17th January) and. E. the contract has two phases: 32 . such as the National Bank of Angola and by the respective government of the province in which the investment is located. The risk of investment shall fully be at the investors’ expense and the invested capital shall not be reimbursed in any way whatsoever. After the oil concession expires by any legal means.P. research. in a subsidiary way by standards and principles of the new Private Investment Law. E. within the Angolan territory. Foreign investments in the Diamond sector are governed by the Mining and Geological Activities Law (Law No. the celebration of a consortium contract or a production sharing contract. Diamond Sector Prospection. and may be effected by a call for proposals or direct negotiation. recognition and commercialization of diamonds.P. Investment contracts are negotiated exclusively with ENDIAMA.of a company. equipment and other acquired goods for the performance of the oil-related operations shall revert to SONANGOL E. 48/06. of 07th October – the so-called Diamond Act.) or by mixed companies in which it participates. whose contractual terms shall be approved by different state-owned bodies. of 01st September.

2nd . the TRIPS Agreement (since 1996). that is. Only ENDIAMA.5% of the value of exported diamonds. the Paris Convention on Intellectual Property Protection and the Cooperation Treatise on Patents (since 2007).11 Intellectual Property Angola is a member of International Conventions and Agreements. Industrial Property Law No. 3/92. so that the producers’ rights may be protected. stating the area and the respective work programme.P. of 28th February. Diamond export activities are subject to licensing by the Ministry of Commerce. The registration regime of the Angolan industrial property rights is constitutive.Exploration phase – the investor submits the technical and economic feasibility study. utility models. E. 3.1st – Mining-geological research phase – the potential investor submits its investment intent. drawings or industrial models) and trade (brands. rewards. – or another company incorporated specifically for the purpose – may commercialize diamonds. the rights are only subject to legal protection after the relevant registration with IAPI (Angolan Institute for Industrial Property) has been effectively filed. which shall be subject to approval. names. 33 . aims at defining the protection rules governing the intellectual property rights in industry (patents. being an integral part of the concession contract of mining rights. The commission for operational costs of the commercialization company shall not exceed 2. insignias of the business and source information). such as the Convention of the World Organization of Intellectual Property (since 1985). known as Intellectual Property Law.

d) for 10 years after the deposit. .The property rights last: a) for an unlimited period of time in relation to the rewards and source information. c) for 5 years regarding industrial models and drawings (extendable up to 15 years). regarding brands (extendable).Other rights – fine. Unfair Competition Unfair competition means all acts that go against honest practices and uses. namely as follows: a) discredit acts.Illegal brand use – fine or prison up to 3 months. 34 . in any branch of the economic activity. f) for 20 years regarding business names and insignias (extendable).Patents – prison up to 6 months or fine. b) for 6 years regarding utility models (extendable). b) confusion acts. . Within the scope of the Intellectual Property Law. e) for 15 years after the deposit. e) undue disclosure or seizure of third party’s industry or trade secrets. d) double-dealing acts. c) deceitful acts. infringement of the respective rights can be punished as follows: . regarding patents.

c) whose foreign authors do not reside in Angola. iii) labour law. which applies to all literary. v) crimes against the State’s security and safety. artistic or scientific work: a) whose authors are Angolan citizens or usually reside in Angola.00 and.12 Dispute Resolution Organization of the Judicial System The Unified Court System includes the Municipal Courts. After this time limit. of 10th March. the Provincial Courts and the Supreme Court. 4/90. whenever the parties agree upon the exclusive application of non-codified customary law. which is responsible for examining appeals of the decisions given by the Provincial Courts. 35 . but this deadline is shortened to 25 years in terms of photography work. ii) family law. as long as it results from the international conventions of which Angola is a member and there is reciprocity of the work of Angolan authors in the respective countries. The Municipal Courts have broad competence in civil and criminal matters within the Municipality. the work falls into public domain and no longer enjoys the said protection. copyrighted content expires 50 years after its author’s death.Copyright Copyright protection in Angola is ensured by Law No. 3. b) which is published for the first time within the Angolan territory. The Supreme Court is the highest court within the hierarchy of the Angolan judiciary organization. The Provincial Courts are divided into Chambers: i) civil and administrative law. As a rule. They are responsible for judging civil cases up to Kz 100. iv) common crime. irrespective of their value.000.

Privileged Relations with Other Countries Angola has been strongly investing in Foreign Direct Investment (FDI). On 30th August 1995. Arbitration provides Angolan and foreign economic agents with an alternative to solve disputes within the scope of commercial relations. and such direct feasibility decisions are not at all dependent on justice courts.Arbitration Law 16/2003. both within the political and economic framework. Within this scope. 36 . United States of America and South Africa. Portugal and Angola celebrated a Legal and Justice Cooperation Agreement. Portugal is the main investor in Angola. as a factor of sustained development of the country. such as Portugal. establishes the possibility of solving disputes by arbitration. and consequently various bilateral agreements and protocols have already been celebrated. Currently. India. the relations between both countries have reached their peak. Angola has been strengthening international relations with several countries. which includes provisions dealing with civil and criminal issues. Arbitration includes both internal and international arbitration (in cases where international trade interests are at issue). China. Brazil. Except for the oil and diamond sectors. and there is a wide variety of Portuguese companies solidly set up and implemented within the Angolan territory. 4. 4.1 Portugal The relations between Portugal and Angola have been increasingly strengthened over the last years. of 25th July.

Recently.5% of Angola’s total oil production has been exported to India). 4. in which China is broadly represented. exports from Brazil to Angola have sharply increased. In the last decade. almost ten times. China plays a very important role within the Angolan territory. as an active partner. 4. the sector that most contributes to the relations between Angola and India is the oil sector (6. Currently. As a consequence. In January 2010 a Memorandum of Understanding has been entered into between both countries in order to reinforce bilateral cooperation. to Angola’s growth. 37 .4.4 China The year 1983 was an important milestone as it was the beginning of the diplomatic relations between Angola and China. there are presently 5000 Indian citizens residing in Angola.3 India The Republic of Angola and India have celebrated a cooperation agreement regarding the technical training of Angolan senior staff. Indian authorities have already expressed their interest to extend bilateral cooperation.2 Brazil The relations between Angola and Brazil are not only confined to the trade sector but have historical and cultural roots. in particular in the education and health fields. as regards the construction sector. overcoming the role that had been played by South Africa. Since then. Currently. the Brazilian state authorities have assumed that their main objective is to continue to contribute and play a part. but also the agricultural and small industry sectors. bilateral cooperation has substantially increased and Angola has become China’s major commercial partner.

4.com 38 . the USA have shown a strong interest in expanding bilateral cooperation to agriculture. 4. which include the presence of South-African business delegations in Angola and the presentation of the “Reconstruction Programme of Angola’s South-Centre and East Regions”. Notwithstanding the huge and insuperable weight of this sector in bilateral relations between both countries. There is also a growing interest of both countries in giving a further boost to their business and commercial relations.6 South Africa The increasing intensification of existing commercial relations between Angola and South Africa is clearly seen. accounting for 45% in 2010. telecommunications and energy.Angola Tel: +244 222 33 67 87 Fax: +244 222 39 06 34 vca@vca-angola. 187 .91 thousand million. trade forums between both countries have been increased. which aims at the construction of integrated and housing infrastructure in Angola and relies upon various bilateral agreements.com www. by intensifying their diplomatic relations. encompassing the areas of Public Works. Infrastructure. In addition. Telecommunications and Information Technologies.vca-angola.5 United States of America The relations between Angola and the United States of America have been widely strengthened as a consequence of the very strong movement of imports within the scope of the oil sector: nearly USD 18. information technologies. tourism. namely through the celebration of some Memoranda of Understanding. civil construction and public works. Vítor Carvalho & Associados Advogados|Angola Rua Rainha Ginga.Commercial relations between both countries have had a considerable growth.Edifício Rainha Ginga Luanda .

1200-410 Lisboa .pt www. Carlos.ABBC Angola Link Largo S. Nº 3.pt 39 .abbc.Portugal Tel: +351 21 358 36 20 Fax: +351 21 315 94 34 angolalink@abbc.

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