EY-Global-oil-and-gas-tax-guide-2014

16 Angola
subcontracted, and to the subcontracts aimed at the rendering of services or
works (including the supply of materials) for the Project.
Investment income tax
Interest income derived from shareholder loans or other loans made by the
promoting companies, respective affiliates, and third parties for the benefit of
Angola LNG Limited, Sociedade Operacional Angola LNG, Sociedade Operadora
dos Gasodutos de Angola, or other companies they have incorporated will be
exempt from investment income tax. A similar exemption, under certain
conditions, may apply to interest derived from loans made between the
promoting companies.
Promoting companies and their affiliates are exempt from investment income
tax on dividends received from Angola LNG Limited, Sociedade Operacional
Angola LNG and Sociedade Operadora dos Gasodutos de Angola.
Angola LNG Limited, Sociedade Operacional Angola LNG, Sociedade Operadora
dos Gasodutos de Angola and any other company incorporated by them are not
required to withhold investment income tax in relation to payments under
certain lease contracts, transfers of know-how, and intellectual and industrial
property rights. This exemption only applies during a specific time frame.
Other tax exemptions
Income obtained by Sonangol from payments for the use of the associated gas
pipelines network, made by Angola LNG Limited under the investment contract,
is exempt from all taxes and levies. Angola LNG Limited should not perform any
withholdings on such payments.
Angola LNG Limited, Sociedade Operacional Angola LNG, Sociedade Operadora
dos Gasodutos de Angola, promoting companies, and their affiliates are exempt
from all other taxes and levies that are not specified in Decree-Law No. 10/07,
namely: PPT, PTT, urban property tax, property transfer tax, investment
income tax and stamp duty (under certain conditions). Notwithstanding the
foregoing, these companies are subject to the standard administrative
surcharges or contributions due in relation to commercial activities and
transactions associated with the Project, provided such surcharges and
contributions are generically applicable to the remaining economic agents
operating in Angola.
The transfer of shares in Angola LNG Limited, Sociedade Operacional Angola
LNG and Sociedade Operadora dos Gasodutos de Angola, without a gain,
should be exempt from all taxes and levies. Moreover, no taxes or levies are
imposed on the shares of the aforementioned companies, including increases
and decreases of capital and stock splits.
No taxes or levies are imposed to the transfers or remittances of funds to make
any payment to the promoting companies, their affiliates or third parties
making loans that are exempt from income tax or WHT, as per Decree-Law No.
10/07, including the reimbursement of capital and the payment of interest in
relation to shareholder loans and other loans, as well as the distribution of
dividends in accordance with the above Decree-Law.
Customs regime
In accordance with the Project’s regime, the customs procedure applicable to
the operations and activities is that established for companies in the customs
regime law applicable to the oil industry, but with the changes and adjustments
stated in Decree-Law No. 10/07.
This customs regime is applicable to Angola LNG Limited, Sociedade
Operacional Angola LNG, Sociedade Operadora dos Gasodutos de Angola and
other entities that carry out operations or activities related to the Project on
behalf of Angola LNG Limited, Sociedade Operacional Angola LNG or
Sociedade Operadora dos Gasodutos de Angola.
In addition to the goods listed in the customs regime law applicable to the oil
industry, also exempted from customs duties are various other products that
are exclusively used for the purposes of the Project.