Angola wants to recover 156 million social security tax debts – The Economic Journal

The voluntary adherence to the Exceptional Regime for Tax, Customs and Social Security Regularization ends on June 30, but Angolan taxpayers who, during the first six months of the year, turned to the Tax Department for this purpose, have until 31 December this year to settle interest-free debts and fines. By June 4, Angola has recovered more than nine billion kwanzas (about 24 million euros) related to debts due to regularize, reveals on Tuesday, June 11, the "Jornal de Angola." By the end of the year, Angola expects to recover about one fifth of the 842 million euros of debts accounted for by the Angolan tax authorities.

"The Exceptional Regime for Tax and Customs Debt Regularization, which the Angolan State adopted on December 28 last year and whose term of voluntary adhesion ends at the end of this month, has already allowed the collection, until June 4, of more than nine one billion Kwanzas, "said Jornal de Angola quoting source from the Tax Studies Center (CET) of the General Tax Administration (AGT).

The exceptional regime is a measure that the State has granted to reduce the high level of taxpayers' indebtedness, to prevent situations of corporate bankruptcy and, consequently, the elimination of jobs, as well as the relaunch of the national economy, in this new phase, allowing to taxpayers debtors pay interest-free taxes, fines and procedural costs.

Under the new debt settlement system, the Angolan state wants to recover from tax and customs taxpayers at least 60 billion Kwanzas (156 million euros) by December 31 of this year. A revenue that accounts for about one-fifth of the total of EUR 323 billion (EUR 842 million) that AGT initially admitted to being in liabilities (internal tax debts of private taxpayers not subject to special taxation, excluding public debt, customs debt and debt associated with specific regimes in the oil and diamond sector).

The "Jornal de Angola" recalls that Law 18/18, of December 28, law that approves the State Budget for the fiscal year 2019, provides in its article 17 the Exceptional Regime of Regularization of the Tax, Customs and Social Security Debt, on the basis of which "the State is predestined to lose about 124 billion Kwanzas (about 323 million euros), which corresponds to 38% interest and fines, of a total of approximately 323 billion kwanzas (842 million euros) that the taxpayers stopped paying ".

Milcon Ngunza, a technician at the Center for Tax Studies (CET) of the AGT, is quoted by this publication to indicate that "the State wants, with this fiscal measure, to ensure that companies do not go bankrupt, as well as avoid eliminating job".

"It is good to join, because there is no guarantee that a regime of this nature will be contemplated in the future. For now, there is no prospect that the state will repeat this opportunity for taxpayers to settle interest-free debt, fines and procedural costs, "said Milcon Ngunza.

Angolan taxpayers can pay off the debt at the moment of accession, or in different installments, until December 31. Anyone who does not join until June 30, is immediately conditioned to pay the tax events that occurred from 2013 to December 31, 2017, with all the taxes inherent to the taxes that make up the Angolan tax system, whether on the fiscal side, either on the customs side. In general, they are charged based on the assumptions of the General Tax Code, the Tax Procedure Code and, if applicable, the Code of Tax Enforcement.

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