Harmful Tax Practices – 2024 Peer Review Reports on the Exchange of Information on Tax Rulings

Angola

Angola has met all aspects of the terms of reference (OECD, 2021[1]) (ToR) for the calendar year 2024 (year in review), and no recommendations are made.

In the prior year’s report, as well as in the 2017-2022 peer reviews, Angola had received two recommendations. Angola has resolved all of these issues related to identifying future rulings and all potential exchange jurisdictions (ToR I.A), and to exchanging information on tax rulings in a timely manner (ToR II.B). Therefore, these recommendations are now removed.

Angola can legally issue five types of rulings within the scope of the transparency framework.

In practice, Angola issued rulings within the scope of the transparency framework as follows:

Type of ruling	Number of rulings
Past rulings	0
Future rulings in the period 1 April 2016 – 31 December 2016	1
Future rulings in the calendar year 2017	0
Future rulings in the calendar year 2018	0
Future rulings in the calendar year 2019	0
Future rulings in the calendar year 2020	0
Future rulings in the calendar year 2021	0
Future rulings in the calendar year 2022	2
Future rulings in the calendar year 2023	0
Future rulings in the year in review	5

No peer input was received in respect of the exchanges of information on rulings received from Angola.

Information gathering process (ToR I.A)

1. Angola can legally issue the following five types of rulings within the scope of the transparency framework: (i) preferential regimes;1 (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; (iii) rulings providing for unilateral downward adjustments; (iv) permanent establishment rulings; and (v) related party conduit rulings.

Past rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1, I.A.2.2)

2. For Angola, past rulings are any tax rulings within scope that are issued either (i) on or after 1 January 2015 but before 1 April 2017; and (ii) on or after 1 January 2012 but before 1 January 2015, provided they were still in effect as at 1 January 2015.

3. In the prior year’s peer review report, Angola built an internal database that keeps track of all issued rulings. It was determined that Angola’s undertakings to identify past rulings and all potential exchange jurisdictions were sufficient to meet the minimum standard. Angola’s implementation in this regard remains unchanged, and therefore continues to meet the minimum standard. Angola confirms that there were no past rulings issued and therefore, no potential exchange jurisdictions needed to be identified.

Future rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1)

4. For Angola, future rulings are any tax rulings within scope that are issued on or after 1 April 2017.

5. In the prior years’ peer review reports, it was determined that Angola was following guidelines covering which rulings would fall within the scope of the transparency framework and what information should be kept in order to meet the level of detail required by the transparency framework.

6. In the prior years’ peer review report, Angola started to identify all rulings that have been issued by the Angola Revenue Administration (AGT) and developed an internal database where all issued rulings are recorded. When issuing a ruling, the AGT requests the taxpayer for information. During the year in review, this process has been enforced so that the taxpayer always needs to provide information on the immediate parent, ultimate parent and related parties with which the taxpayer entered into a transaction with. The AGT can then identify the jurisdictions of these entities. This is recorded in an internal database, ensuring that the required data are consistently validated and stored. The process is managed by the Exchange of Tax Information Unit (UTIF), which oversees the integrity and completeness of the data collected. As this process is now in place, the prior year’s recommendation is now removed.

Review and supervision (ToR I.A.3)

7. In the prior year’s peer review report, it was determined that Angola’s review and supervision mechanism was sufficient to meet the minimum standard. Angola’s implementation remains unchanged, and therefore continues to meet the minimum standard.

Conclusion on section A

8. Angola has met all of the ToR for the information gathering process and no recommendations are made.

Exchange of information (ToR II.B)

Legal basis for spontaneous exchange of information (ToR II.B.1, II.B.2)

9. In the prior years’ peer review reports, it was determined that Angola did not have the necessary domestic legal basis to exchange information spontaneously. However, Angola now confirms that its domestic legislation2 allows the Tax Administration to exchange information without any prior request, provided that there is an international agreement permitting spontaneous exchange of information in place. Therefore, it can be concluded that Angola has the necessary domestic legal basis to exchange information spontaneously and that there are no legal or practical impediments that prevent the spontaneous exchange of information on rulings as contemplated in the Action 5 minimum standard.

10. Angola has international agreements permitting spontaneous exchange of information, including bilateral agreements in force with four jurisdictions.3 Angola is not a party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[2]) (“the Convention”). Angola is encouraged to continue its efforts to expand its international exchange of information instruments to be able to exchange information on rulings. It is noted, however, that jurisdictions are assessed on their compliance with the transparency framework in respect of the exchange of information network in effect for the prior year and the year under review.

Completion and exchange of templates (ToR II.B.3, II.B.4, II.B.5, II.B.6, II.B.7)

11. In the prior years’ peer review reports, it was determined that Angola is still developing a process to complete the templates on relevant rulings, to make them available to the Competent Authority for exchange of information and to exchange them with relevant jurisdictions.

12. Angola notes that it has created an information exchange unit which functions as the Competent Authority. The Tax Administration is required to send the list of issued rulings to this unit on a monthly basis. The Competent Authority is responsible for completing the template in Annex C of the BEPS Action 5 report (OECD, 2015[3]). Angola confirms that the summary section is competed in line with the FHTP internal guidance. The information is sent to jurisdictions within three months after the Competent Authority received the list of issued rulings. Therefore, the prior year’s recommendation is now removed.

13. For the year in review, the timeliness of exchanges is as follows:

 

Future rulings within the scope of the transparency framework	Number of exchanges transmitted within three months of the information becoming available to the competent authority or immediately after legal impediments have been lifted	Delayed exchanges
		Number of exchanges transmitted later than three months of the information on rulings becoming available to the competent authority	Reasons for the delays	Any other comments
	5	0	N/A	N/A

Conclusion on section B

14. Angola has the necessary legal basis for spontaneous exchange of information, a process for completing the templates in a timely way and has completed all exchanges. Angola has met all of the ToR for the exchange of information process and no recommendations are made.

Statistics (ToR IV.D)

15. The statistics for the year in review are as follows:

 

Category of ruling	Number of exchanges	Jurisdictions exchanged with
Ruling related to a preferential regime	0	N/A
Cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles	0	N/A
Cross-border rulings providing for a unilateral downward adjustment to the taxpayer’s taxable profits that is not directly reflected in the taxpayer’s financial / commercial accounts	0	N/A
Permanent establishment rulings	0	N/A
Related party conduit rulings	5	Portugal
Total	5

Matters related to intellectual property regimes (ToR I.A.1.3)

16. Angola does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[3]) were imposed.

Summary of recommendations on implementation of the transparency framework

Aspect of implementation of the transparency framework that should be improved	Recommendation for improvement
	No recommendations are made.

Notes

← 1.  A special tax regime for oil and gas.

← 2.  Article 84-A of Angola’s General Tax Code (Código Geral Tributário - CGT), Law No. 21/20 of July 9^th.

← 3.  Angola has bilateral agreements with China (People’s Republic of), Portugal, Rwanda and the United Arab Emirates.