Mining 2025

ANGOLA Law and Practice Contributed by: João Afonso Fialho, Marizeth Vicente and Lukeny Pascoal, VdA

In 2016, the government classified rare metals and rare earth elements as “strategic minerals” along with diamonds, gold and radioactive min - erals. However, apart from such classification, the government has not yet introduced new legislative initiatives to promote investment in energy-transition minerals. 4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes The mining sector is subject to a special tax regime established in the Mining Code (appli - cable to all national and foreign investors), as follows. Industrial Tax (Income Tax on Mineral Activities) The tax rate currently in force is 25%. For the purposes of determining taxable income, the following are among the factors considered as tax deductions in addition to those provided for in the general tax law: • costs of exploration; • evaluation and reconnaissance; and • contributions to the Mining Development Fund. Royalty (Tax on the Value of Mineral Resources) The tax rates currently in force are as follows: • strategic minerals (including industrial dia - monds) and precious metals and stones – 5%; • semi-precious stones – 4%;

• metallic minerals, semi-industrial and artisa - nal diamonds – 3%; and • construction materials of mining origin and other minerals – 2%. Surface Fee (Fee Levied on the Concession Area Awarded, Payable During the Exploration Phase) The surface fee value varies according to the size of the concession area, the type of mineral explored and the exploration year in question and can range from USD2 to USD40 per square kilometre. These amounts are doubled in the event of an extension of the exploration period. Holders of mineral rights are subject to other taxes or charges payable by law in respect of activities that are supplemental or incidental to the activities (eg, employment tax). 4.2 Tax Incentives for Mining Investors and Projects Holders of mineral rights can apply for tax incen - tives in the form of (industrial tax) deductible costs, investment premiums (uplift), grace peri - ods for the payment of income tax and any other type of tax incentive provided for in the law. The application for tax exemptions is discussed and negotiated during the contractual stage of the investment procedure with the Negotiations Committee (in this case, the Negotiations Com - mittee must have a member from the Ministry of Finance). Incentives may be granted for projects with impacts on the Angolan economy, namely acqui - sition of supplemental goods and services on the local market, carrying out of mineral activities in remote areas, contribution to the training and development of local human resources, carrying out research and development activities in co- operation with Angolan academic and scientific

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