Effectiveness and Economic Impact of Tax Incentives in the SADC ...

Appendix. Investment Tax
Incentives in the SADC Region
This appendix extends the discussion of SADC tax systems in Chapter 7 by summarizing the
main features of the investment tax incentive programs in each Member State. The summaries
are based on official descriptions from the SADC Tax Database (version: August 2003),
supplemented with information from members of the tax subcommittee, and internet sites
providing country budget documents, IMF country reports, local investment promotion
agencies, U.S. embassy country commercial guides, and tax reports from major accounting
companies. Some passages are extracted directly from official documents. Further details can
be obtained from the SADC Tax Database (once it is available to the public) and from official
agencies in the respective countries.
Each summary covers official objectives of the tax incentive programs, the program coverage,
the main types of direct tax incentives, and (in most cases) the administrative process and
fiscal context. The discussion does not cover incentives in the form of protective tariffs.
Angola 106
Emerging from a long and destructive war, the Government of Angola recognizes that there
are serious deficiencies in the investment climate for projects outside the enclave petroleum
sector. In addition to prudent macroeconomic policies and rehabilitation of public
infrastructure, the Government sees a need to provide tax and financial incentives to spur
economic modernization and productive investment, especially on the micro, small and
medium scale. The current investment incentive law was introduced in 1997 (Decree 73/97),
but it has not been widely implemented. A Presidential Working Group is completing a
proposal for a new investment act.
106 Supplementary sources include information from SADC Tax Subcommittee, data from the Angola Ministry
of Finance and National Bank of Angola; IMF country Report No. 292, September 2003.