AVM

NEWSLETTER
NOVEMBER 2014

New Corporate Tax Code in Angola with a transitional regime
The amended Corporate Tax Code (Código do Imposto Industrial - CII) was recently published and its main goal was to upgrade it in the face of the growing complexity of the operations effected by the taxpayers, and also provide for more fair and efficient relations between taxpayers and the Tax Authority. The new CII shall enter into force as from January 1st 2015, but however anticipates a transitional regime enforceable since October 22nd according to which: the corporate tax rate applicable to financial year of 2014 is decreased to 30%.the withholding rate on arrangements in construction and services for the fiscal year of 2014 shall be kept between 3.5% and 5.25%;corporate tax taxpayers of group B, without organized accounts by January 1st 2015 must fulfil, as from the 2017 fiscal year, their reporting obligations based on financial statements mandatorily Read More

Angola

New Stamp Tax Code in Angola already in force
Following legislative power granted by the National Assembly, the revised Stamp Tax Code was recently published, and this revision aims at clarifying some of the regimes laid down in it, as well as rendering its rules more fair and simple. The new Stamp Tax Code entered into force in October 21st, and intends to eliminate some misunderstandings and distortions in the old version, specially concerning incidence, rates included in the Stamp Tax Table, identification of the taxpayer and entity subjected to the tax. Read More
Tax Amnesty for debts prior to 2013
The recently published new Tax Enforcement Code, enforced as from January 1st 2015, established a special tax debts settlement regime. Thus, taxpayers with Corporate Tax, Labour Income Tax, Stamp Tax, Capital Gains Tax, and Real Estate Municipal Tax debts concerning tax periods until December 31st 2012 shall benefit from an amnesty for overdue taxes and corresponding legal charges, namely interests, fines and procedural charges. If the said amnesty beneficiary is creditor of the State, including non-tax Read More
Incorporation of commercial companies with reduced charges
Since September 29th incorporation of commercial companies is subjected to a flat fee for document duties. The diploma was approved by the National Assembly and entered into force as from September 29th, thereby repealing all legislation opposing it and establishing that all doubts and omissions eventually arising from the interpreting and enforcement shall be settled by the same National Assembly. It establishes the reduction of all charges associated with incorporation of commercial  Read More

Brazil

European Union requests WTO to evaluate Brazilian tax rules
European Union (EU) requested the World Trade Organization (WTO) to come forward on tax discrimination caused by some Brazilian taxes, so to re-establish equal competition among companies and products from Europe and Brazil. According to the position of the EU, Brazilian tax measures give an unfair leverage to national manufacturers and hurt WTO’s rules, as Brazil applies high taxes on imported goods in different sectors, such as automotive, IT, and industrial machinery. However, Brazilian products can benefit with exemptions or selective reductions. Thus, EU products marketed in Brazil are taxed at rates higher than the Brazilian products. Also, imported goods are also subjected to customs payment and  Read More
Brazil targets sun energy expansion
Contracting sun power generating undertakings during the newest Reserve Energy Auction (Leilão de Energia de Reserva - LER) points to a growth trend for this source in Brazil, with a costs reduction and better Megawatt/hour (MW/h) price. According to official sources, during the next 30 years, with a larger market and investors interest, sun energy generation shall grow, escalate an become cheaper. According to the Secretary for Energy Planning and Development of the Ministry for Mining and Energy (MME),sub energy can grow to 5% of the national market or more, «if we include the distributed generation by final consumers». The auction to contract reserve energy, that was held in October 31st, resulted in 31 sun power generation projects contracted, with  Read More

Macao

Macao and the United Kingdom exchange tax information
Macao and the United Kingdom closed an agreement on exchange tax information. This agreement is intended to allow this administrative region and this country to exchange any information related to establishing, settling and collecting taxes, default taxes collection and enforcement or tax issues investigation or procedures. The entry into force Read More
Real estate brokerage with new rules in Macao
The duration of the provisional real estate agent and broker license changed, and remains valid until July 1st, 2016. This diploma entered into force in August 26th, and establishes that the professional real estate agent and broker provisional license, for agents or brokers active in July 1st, 2013, will remain valid until July 1st, 2016. The holder of a provisional license is Read More
Macao reassesses bearer shares
he Government of the Macao Special Administrative Region (Região Administrativa Especial de Macau - RAEM) launched a public consultation on changes to the Commercial Code, specially the elimination of bearer shares, that is, shares with no identification of the holder and, therefore, no indication of the owner, and also the realisation of the “permanent Read More

Mozambique

Mozambique closed natural gas exploration agreement with India
The Government of Mozambique and India closed an agreement for natural gas exploration. This understanding aims at raising investment liquefied natural gas extraction in north of Mozambique ant will be executed through Indian energy companies, and will cost approximately EUR 39 billion. This agreement was closed between Mozambique and India because of the strategic Read More
Japan cooperates with a PME support guarantee fund
Growth of small and medium companies (pequenas e médias empresas - PME) in Mozambique will receive stimuli through the creation of a guarantee fund by the Government of Mozambique in partnership with the Japanese Agency for International Development. The guarantee fund aims at bringing competitiveness and sustainability to investments in OMEs. Therefore, Read More
Fines applicable to foreigners in illegal situation aggravated
The amount of fines applicable to foreign citizens in illegal situation in Mozambique was aggravated. Fines in case of lack of valid visa and accommodation card, in the absence of residence permit, failure to inform the authorities in case of change of place of residence, missing documents and failure to inform any change in identification elements are aggravated by 2.00. Lack of visa or accommodation card Read More

Portugal

Portuguese Investment Tax Code raises IRC tax credit
The new portuguese Investment Tax Code (Código Fiscal do Investimento - CFI) is in force since November 5th and included a few amendments to the contractual tax benefits regime for productive investment, namely concerning enforceability conditions and, also, granted tax benefits. Under this regime, until December 31st, 2020, investment projects with relevant applications amount to Read More
Changes in Portuguese Investment Support Tax Regime
The new Investment Tax Code (Código Fiscal do Investimento - CFI) is in force since November 5th and included a few amendments to the investment support tax regime (regime fiscal de apoio ao investimento - RFAI), namely concerning application scope and, also, granted tax benefits. According to this diploma, the enforcement sector scope of RFAI is changed, and shall   Read More
Investment Tax Code and SIFIDE II
The newly published Investment Tax Code is included in the Business research and development incentives system (Sistema de incentivos em investigação e desenvolvimento empresarial - SIFIDE II) with no relevant changes. Notwithstanding, concerning ancillary obligations it should be stressed the deletion of the reference to the month in which the documents  Read More

East Timor

East-Timor facilitates new businesses
East Timor is the country which progressed the most to facilitate creation of new businesses according to the 2015 Doing Business Report, issued by the Group Banco Mundial by the end of October. This report compares the regulation applicable to national companies through 189 economies. It reviews the regulations that improve the economic activities and those that restrict it, and considers that, of the 189 economies analysed, during June 2014, East Timor was the country Read More
Timorese will be able to access commercial loans
It shall be soon disclosed the date as from which the Timorese shall be able to access business loans from commercial banks using movable property as collateral. This possibility is the result of an initiative co-financed by Asian Bank for Development (BAD). The attendants of this consulting meeting supported by BAD were recently informed that the Government of East-Timor is currently proposing to implement safety reforms in transactions, during June 2014, Read More

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