(Argus, 23.Jul.2020) — The Angolan government has decided to cut the petroleum income tax rate from 50pc to 30pc for domestic companies that successfully bid in the country’s upcoming onshore licensing round.
The move is designed to encourage domestic firms to participate in the round, which will comprise nine blocks in the Lower Congo and Kwanza onshore basins. Angola’s upstream regulator ANGP plans to launch the bidding process in the fourth quarter of this year, with a tentative deadline of March 2021 for licence awards.
In addition to the tax reduction, domestic oil companies will be exempt from paying signature bonuses and will no longer be obliged to pay or contribute to social responsibility projects.
By Nicola De Sanctis