![[Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years](https://theafricanbusiness.com/wp-content/uploads/2023/02/TALA-APP-360x180.jpg "[Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years 19")
The Special Contribution on Foreign Exchange Transactions (CEOC), applicable to foreign currency transfers out of Angola, with a rate of 2.5% for individuals and 10% for corporate entities, will come into effect on January 1, 2024.
The information is contained in a note from the Angolan General Tax Administration (AGT), signed by its president, José Leiria, which Lusa had access to today, detailing how it will be applied.
This taxation will apply to all foreign currency transfers out of the country, made by individuals or corporate entities domiciled or headquartered in the national territory, within the scope of service provision contracts, technical assistance, consultancy and management, capital operations, and unilateral transfers. In the communication, the Angolan tax entity reports on a meeting held with the Angolan Banks Association, which shares responsibility for compliance with this new regulation, and recalls that the law approving the General State Budget (OGE) for 2024 foresees the introduction of the CEOC into the Angolan legal system.
Under the OGE 2024 law, transfers intended for health and education expenses will be excluded from the regime, “provided they are made directly to the respective health and education institutions, as well as the repatriation of dividends or loaned capitals, including the respective interest.”
According to the AGT, the calculation base for the CEOC will be the amount in the national currency subject to the transfer, “regardless of the currency used,” on which the rate of 10% will apply in the case of transfers made by corporate entities and 2.5% in cases of transfers made by individuals.
The measure establishes an exemption from this contribution for the State and its bodies, establishments, and organizations (excluding public companies), as well as diamond companies and oil investment companies.
The Angolan tax body further clarifies that the economic-financial charge of the CEOC “will fall upon the individuals or corporate entities ordering the transfer” and that “the obligation to withhold, liquidate, and deliver the tax will fall upon financial institutions at the time of processing the transfer abroad.”
The AGT reminds of the mandatory nature for financial institutions to proceed, as of January 1, 2024, with the withholding of the CEOC, establishing a penalty payment to the said institutions in case of non-compliance.
