On the 8th of November 2010, the Portuguese Ministry of Finance and Public Administration announced that negotiations towards the conclusion of a Double Taxation Agreement between the Portuguese Republic and the Angolan Government have been initiated.
Negotiations are still in a very early stage. Though, once approved, this Agreement will be a key instrument to avoid double taxation and is likely to promote internationalization and closer business relations between companies of both countries.
In fact, this Double Taxation Agreement may even become the first bilateral instrument of this kind in force in Angola, which, given the relevance of this region both to domestic and foreign investors, can determine the choice of Portugal as an efficient jurisdiction for investments in this region.
In this context, investments in Angola through the incorporation of a company within Madeira’s IBC will become even more attractive both to domestic and foreign investors wishing to invest in this country, since, besides the advantages of the IBC regime, they might potentially benefit from a relevant instrument of tax relief.