The Special Contribution on Foreign Exchange Operations (CEOC), which comes into force this Thursday, is applicable to all transfers abroad in foreign currency, with a rate of 2.5 percent for natural persons and 10 percent for individuals collective, with the bank that carries out the operation being equally responsible for withholding this tax.
The executive president of Caixa Angola stated that the bank has been preparing to apply the new rate, but highlighted that there are still many doubts about the impact of the new CEOC.
"Our main concern is to serve our customers well by being rigorous in applying the law, helping them with any questions they may have. We, as the entity that settles the tax, are providing a public service and have a responsibility to apply the law well. If we have disagreements with customers, we have to clarify this particularly with the AGT [tax authority]", he told journalists on the sidelines of a clarification session about CEOC.
João Pires considered that, because it is a new tax, there are still many doubts.
"This brings additional friction with customers, we have to be conservative and rigorous, without a doubt we have to go for the most rigorous application, [but] the customer may have other ideas", highlighted the person in charge, hoping that in the face of issues that arise put the law into practical application, AGT quickly clarifies doubts.
João Pires considers that the implementation of CEOC will not imply any more delays in transfers, although he admits more bureaucracy.
"We invest in systems, this is not where there are delays if the documentation is provided by customers in good condition. This is even more rigorous in terms of documentation because there is a new aspect that has to be analyzed by us and the documentation has to be present", he stated.
But, if clients hand over complete dossiers, they will not experience additional difficulties, as delays in transfers are due to the scarcity of foreign exchange, he pointed out.
"If there is no currency, payments cannot be processed, (...) if there is no currency on the market, payment is delayed", highlighted João Pires.
These situations began to occur in the middle of last year, due to fluctuations in the foreign exchange market and the devaluation of the kwanza, but the head of Caixa Angola said that the kwanza has been stabilizing.
As for the foreign exchange shortage, it will only improve when import substitution measures begin to take effect.
"We know it will take some time, (...) but we continue to invest in the vitality of the Angolan economy", he stressed.
CEOC focuses on service provision, technical assistance, consultancy and management, capital operations and unilateral transfers, excluding health and education expenses as long as they are made directly to providers.
The measure also establishes exemptions for the State and its bodies, as well as diamond companies and oil investors, and transfers of dividends and debt service incurred abroad.
