AngolaAngola

Legal ReferenceCorporate Income Tax, n.º 1, article 50, approved by Law n.º 26/20

The OECD Transfer Pricing Guidelines (TPG) are not legally binding, but used as an explanatory instrument.

Legal ReferenceLarge Tax Payers regulation, Presidential Decree n.º 147/13, October 1st article 11

[...] there are special relationships between two entities when one has the power to exercise, directly or indirectly, a significant influence on the management decisions of the others, namely: a) when the administrators or managers of a company, as well as their spouses, ascendants and descendants, directly or indirectly hold a participation of not less than 10% of the capital, or of the voting rights in the other entity; b) when the majority of the members of the administrative or management bodies are the same or, being different people, are linked together by marriage, “de facto” union or kinship in a straight line; c) when the entities are linked by means of a subordination contract; d) when they are in relations of dominance or reciprocal participation, as well as linked by means of subordination contract, of parity group, or other equivalent effect under the terms of the law of commercial companies; e) when between one and the other there are commercial relations that represent more than 80% of its total volume of operations; f) when one reports the other, in more than 80% of its credit portfolio.

Legal ReferenceLarge Tax Payers regulation, Presidential Decree n.º 147/13, October 1st article 13

Article 13 of the Large Taxpayer Code provides for these three methods.

• CUP (provided)
• Resale Price (provided)
• Cost Plus (provided)
• TNMM (not provided)
• Profit Split (not provided)
• Other (not provided)

Legal ReferenceLarge Tax Payers regulation, Presidential Decree n.º 147/13, October 1st article 13

Article 13 states that only the three traditional methods may be used and the legal interpretation of the article is that the taxpayer should use the most appropriate method according to the transaction.

• Hierarchy of methods (not selected)
• Most appropriate method (selected)
• Other (if so, please explain) (not selected)

Angola does not have specific guidance on commodities.

• For controlled transactions involving commodities, the guidance contained in paragraphs 2.18-2.22 of the TPG is followed. (not selected)
• Domestic legislation mandates the use of a specific method for controlled transactions involving commodities (if so, please explain) (not selected)
• Other (if so, please explain) (not selected)

Legal ReferenceLarge Tax Payers regulation, Presidential Decree n.º 147/13, October 1st article 11

Although TP legislation does not specify, internal TP procedures follow Chapter III of the OECD TPG, namely in the comparability analysis, timing issues on comparability, as well as compliance issues.

There is no preference since there is very little financial information available for purposes of using national comparables.

The current TP legislation allows the use of the three methods above and it does not restrict the use of an arm’s length range or statistical measure, but it does not specifically require it. For now, this is stated in internal procedures and will be included in the soon to be approved TP legislation.

Angola’s TP regulations does not contain specific provisions to the pricing of controlled transactions involving intangibles. The general TP provisions in Income Tax Law and regulations would apply.

Angola’s TP regulations does not contain specific provisions on intra-group services transactions. The general TP provisions in Income Tax Law and regulations would apply.

Legal ReferenceCorporate Income Tax, n.º 1, article 64 (paragraph 6) and 67 (paragraph 1), approved by Law n.º 26/20

Services provided by corporate resident taxpayers, are taxed at a 6.5% withholding rate. In the case of accidental services provided by non-resident taxpayers, the rate is 15%. This provision applies to services of any kind.

Angola’s TP regulations does not contain specific provisions on intra-group financial transactions. The general TP provisions in Income Tax Law and regulations would apply.

Legal ReferenceLarge Tax Payers regulation, Presidential Decree n.º 147/13, October 1st article 12

• Master file consistent with Annex I to Chapter V of the TPG (not selected)
• Local file consistent with Annex II to Chapter V of the TPG (selected)
• Country-by-country report consistent with Annex III to Chapter V of the TPG (not selected)
• Specific transfer pricing returns (separate or annexed to the tax return) (not selected)
• Other (specify): (not selected)

Taxpayers with operating revenue above AKZ 7 000 million are obligated to provide to the Angola Revenue Administration the Transfer Pricing File. However, this obligation is only for the large companies ( large taxpayers). Therefore, the large taxpayer must submit the TP File between the end of the fiscal year on 31 December and June the following fiscal year. The file must be in Portuguese.

If an entity follows all specifics we mentioned above, and still does not submit, it will have to pay a fine up to AKZ 100 000 (approximately EUR130)

Mutual Agreement Procedures only apply for cases in which Double Tax Agreements apply.

• Rulings (selected)
• Enhanced engagement programs (not selected)
• Advance Pricing Agreements (APA) (not selected)
• Mutual Agreement Procedures (selected)
• Other (please specify): (not selected)

In Angola’s two tax treaties.

Angola is preparing a new transfer pricing regulation at the moment.