Modernisation is a term that goes beyond the recognition of changes in political, economic and social systems, representing a commitment to the future. Modernisation is a project of modernity based on ideology, developments, progress and logic. As an extension of the capitalist mode of production across different places, it is established on the basis of two fundamental models: one political and ideological, and the other technical and infrastructural.

Among the objectives defined in the LGERT, we highlight measures aimed at improving the competitiveness and efficiency of the Angolan tax system, thus enabling the country’s economic.

Among the objectives, we highlight those aimed at:

• a) System competitiveness;
• b) Revenue enhancement;
• c) Simplification of procedures; and
• d) Improvement of relations with taxpayers.

In order to achieve these objectives, four areas of action have been identified:

• i) Tax Administration reform;
• ii) Tax System;
• iii) Tax Justice; and
• iv) International Taxation.

It is in this context that there is an urgent need to modernise tax services, particularly in terms of taxation, so that larger taxpayers can regularise their tax situation quickly, simply and securely, especially via the Taxpayer Portal.

AGT is a legal entity governed by public law, which is part of the indirect administration, enjoying legal personality and capacity, as well as administrative, regulatory, patrimonial and financial autonomy. AGT is a State body whose fundamental mission is to propose and implement the State’s tax policy and ensure its full compliance, administer taxes, customs duties and other levies assigned to it, as well as study, promote, coordinate, implement and evaluate tax policy programmes, measures and actions relating to the organisation, management and improvement of the tax system.

The AGT also has the mission of controlling the country’s external border and national customs territory for fiscal, economic and social protection purposes, in accordance with the policies defined by the executive.

Investing in technological tools

The simplification of procedures and the interconnection of systems in public administration has been a strategic priority in Angola. The implementation of the project to simplify procedures in public administration, approved by Presidential Decree No. 161/21 of 21 June, aims to reduce bureaucracy, optimise public services and ensure a more efficient and modern public administration.

In tax administration, the interconnection of systems is essential for obtaining detailed information about taxpayers, facilitating the implementation of attachment procedures. This interconnection involves public and private institutions, namely banking institutions, land, commercial and vehicle registries, notary offices, the National Road Safety and Traffic Authority and other institutions.

The interconnection of technological tools should lead to greater taxation efficiency and the implementation of good practices, with a view to reducing bureaucracy and simplifying, integrating and optimising processes.

With regard to public institutions, this measure also aims to ensure the proper implementation of the Administrative Procedure Code, which guides closer integration between the bodies that make up the State administration.

With the creation of the AGT, reforms to the Angolan tax system, embodied in legislative changes and the creation of new taxes, led to the creation of automated processes.

Customs began a process of expansion and modernisation in 2001, which included, among other fronts, the total restructuring of the institution, given the obsolescence and inefficiency of its general services. This process included the implementation of new computer systems. The implementation of the SNA Expansion and Modernisation Programme was reflected in a 600% increase in annual revenue collection compared to figures prior to the process.

Since 2017, AGT has been promoting a genuine structural reform in the use of ICT, with the aim of reducing bureaucracy, simplifying and automating the main customs and tax processes and procedures, thereby facilitating taxpayers’ compliance with their tax obligations.

The SIGT – Integrated Tax Management System aims to ensure the dematerialisation of tax procedures and processes, covering taxpayer registration, the submission of declarative obligations, the settlement and payment of taxes, and the collection and accounting of revenues for the Single Treasury Account (CUT).

Asycuda World is an integrated system that automates the stages of the customs clearance process for goods, from the preparation and submission of the Cargo Manifest to the release of goods from temporary storage facilities.

The electronic goods auction platform has reduced the bureaucracy involved in the sale of goods, ensuring greater transparency, speed and higher revenue collection, enabling eligible taxpayers to compete anywhere in our country.

The inspection of goods in road transit from Angola to neighbouring countries, namely the Republic of Congo, Zambia, the Democratic Republic of Congo and Namibia, has been carried out using an electronic monitoring system.

The Certificate of No Debt has been renamed CCT Certificate of Tax Compliance, which is the document issued by the AGT certifying the taxpayer’s tax compliance. It can be obtained from the Taxpayer Portal, independently, quickly, 100% digitally and immediately.

Revenue growth

From the above, in 2019, non-oil tax revenue was 2.2 billion kwanzas, and in 2023, this same revenue reached 4.8 billion kwanzas. In just five years, revenue more than doubled.

Weight of non-oil revenues

Currently, non-oil tax revenues are sufficient to cover civil service salaries, which represents a significant advance over the past. It is denied that a tax system is being built in the country that creates a situation of greater hardship for taxpayers, rather than increasing the tax base.

Segmentation of taxes by revenue collection

In the Angolan tax ecosystem, Value Added Tax (VAT) is the tax with the largest share of non-oil revenues, representing 30% of the total. Next, Industrial Tax (II) and Income Tax (IRT) compete for second place. In 2023, IT accounted for 25% of revenue, while ITI generated around 21%.

It should be noted that, at the beginning of 2024, ITI performed more robustly, indicating that its collection may grow, possibly putting it in the spotlight if the pace continues.

Current expenditure vs non-oil revenue

Although oil revenue is still necessary, the capacity to cover expenditure with non-oil revenue is increasing. Unlike ten years ago, when the state would have ground to a halt without oil tax revenues, we now have sufficient non-oil tax revenues to guarantee the payment of salaries for all civil servants, with a surplus capable of covering the most essential current expenditure.

Tax reform

The tax reform process also involved changes to the tax system, notably the creation of the Motor Vehicle Tax (IVM) in 2021, which replaced the former Road Tax. This new approach reflects an update in the tax treatment of vehicles.

In addition, VAT, introduced in 2019, continues to be adjusted over the years. In 2024, a significant amendment to the VAT Code was published, and AGT is currently working on a new proposal for Corporate Income Tax, which is already being discussed at meetings of the Economic Commission of the Council of Ministers.

Technology

One of the fundamental pillars of the AGT’s modernisation is the use of technology. The AGT has adopted the Integrated Tax Management System (SIT), a tool developed in partnership with SASI, which facilitates data search and processing. This system was acquired under the general contract for the technological modernisation of the tax administration, signed with the company TIS for 115 million dollars, with an expected duration of three years.

SASI’s SIT search engine allows the AGT to identify risks and analyse tax data, both that provided directly by taxpayers and that originating from interoperability systems with other public entities. This advance has been crucial in improving the efficiency of tax collection and identifying taxpayers in compliance with their tax obligations.

In accordance with this article, which reflects the modernisation of the AGT over the last 10 years, its achievements and challenges, notwithstanding the ongoing issues to be resolved, and based on the results presented, we understand and conclude that:

• ✓ The restructuring and modernisation of the main border posts is one of the recommendations of the World Trade Organisation (WTO), in accordance with Article 8 of the Trade Facilitation Agreement, ratified by the Angolan executive on 9 May 2019. Several actions are underway to implement this agreement;
• ✓ The AGT has made progress in reaching out to taxpayers by creating digital platforms and systems that facilitate access to tax services. The institution aims to be recognised nationally and internationally as a model of excellence in the provision of public services;
• ✓ With the modernisation of tax services over the last ten years, taxpayers can now calculate Motor Vehicle Tax (IVM) using the Tax Simulator tool. This tool, available on the AGT website, also allows the calculation of Property Tax (IP) and Income Tax (IRT);
• ✓ The AGT plans to gradually expand the functionality of this simulator to include the simulation of other taxes (II, IEC, VAT, IS, IAC and IEJ) and customs duties (Import and Export).

The ongoing effort to modernise tax services has resulted in the implementation of several technological tools, which have had a positive impact on efficiency, simplification and maximisation of tax revenues, namely:

• a) Tax Identification Number Lookup;
• b) Settlement Note/Payment Receipt;
• c) Taxpayer Portal;
• d) Asycuda world (currently migrating to ASY5);
• e) AGT mobile (to be discontinued in favour of the MinFin App);
• f) Tax Measurement System (SMF);
• g) Request for Payment in Instalments;
• h) Tax Simulator;
• i) Online Goods Auction;
• j) Motor Vehicle Tax;
• k) Property Tax;
• l) Digital Library;
• m) PROSEFA;
• n) Agile Competition;
• o) Online Appointment Service; and
• p) Taxpayer Support Centre.

Structural and technological reform is ongoing and aims at the progressive segmentation of actions, aligned with the objectives of the AGT, providing a simple, easy, swift and consensual revenue collection environment.

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