Angola Reduces Petroleum Income Tax for Local Firms
Image: David Mark/ Pixabay
The Angolan government has reduced its petroleum income tax from 50% to 30% for national companies that are awarded licenses in the country’s upcoming bidding round.
The decision is intended to incentivize local oil companies to participate and submit bids in the round. In addition, local companies will not be required to pay signature bonuses or make financial contributions to social responsibility projects.
The upcoming licensing round puts three blocks in the Lower Congo basin and six blocks in the Kwanza basin on offer. While data packages are currently available for the nine blocks, the announcement of the launch of public tender has been delayed due to COVID-19, and is instead planned for the fourth quarter of this year, with the award of licenses tentatively set for March 2021.