The IRPC, in public consultation from this Wednesday until January 31st, repeals the Industrial Tax Code, the Capital Investment Tax Code, provisions of the Stamp Tax Code, article 18 of the Property Tax Code and other legislation.
With the introduction of IRPC, it is estimated that 2.077 billion kwanzas will be collected in its year of implementation.
According to the General Tax Administration (AGT), the body responsible for public consultation, of the aforementioned estimate, income from commercial, industrial, extractive activities (except oil and gas), provision of services (except capital income), will represent the most of the collection, with around 86.5 percent of it.
The tax from property income should represent only 3.8 percent of revenue and the tax on capital income will represent 9.7 percent of revenue, says the diploma consulted by Lusa.
“The revenue estimates presented above will represent 59 percent of non-oil revenue. Furthermore, it also represents 5 percent of the non-oil Gross Domestic Product (GDP), the document reads.
According to the authorities, in the report justifying the IRPC proposal, the national tax system is still characterized by a multiplicity of declarative obligations, different deadlines and different payments.
He argues that the articulation of current taxes is “complex, generating numerous doubts among taxpayers, which in a certain way affects compliance with tax obligations and the business environment”.
Thus, it justifies the need to implement an income taxation system that is “simpler, more modern and unitary, characterized by the reduction of technical complexity and unification of declarative procedures”, which will culminate in the unification of all taxation of corporate income in one single tax.
With the Single Tax on Corporate Income, the tax authority recommends, in addition to the general reformulation of the taxation of corporate income and similar entities, the simplification of the taxation of corporate income, the increase in the tax competitiveness of companies, the strengthening of the business fabric, the broadening of the tax base and the introduction of greater tax justice.
The enhancement of revenue collection levels, alignment with best international practices, the elimination of international double taxation, the promotion of a closer relationship between taxation and accounting and the reduction of tax evasion and fraud are also among the purposes of the legislative initiative.
The IRPC comprises 110 articles divided into nine chapters.
