Country Risk Profiles

Angolan law lays down various instruments and procedures for forest legal management and harvesting. The Law on Forest and Wildlife Basic Legislation provides for a National Forestry Plan at a national level. The said plan is defined as a sustainable and integrated management tool that aims at planning and implementing technical and administrative actions. The said Act also provides a Forest Management Plan, defined as a technical document indicating the sources of commercial harvesting of forest resources, aiming to ensure sustainable resource management. The plan indicates, among other things, the species and quantities of resources to be cut or hunted in each period, the technologies to be used, and the areas or zones where harvesting takes place. Forest harvesting under a concession is carried out according to detailed management plans. A simplified management plan is required (Presidential Decree No. 171/18 approving the Forestry Regulation, Law No. 6/17 on Forest and Wildlife Basic Legislation).

Forest inventories

National level inventories are the responsibility of the State. It is the responsibility of the Forest Ministerial Department to order the implementation of the National Forest Inventory at least every ten years. The Institute prepares the National Forest Inventory for Forest Development. The National Forest Inventory collects information covering all types of forests on the national territory to support the formulation of forest policies, the National Forest Plan, and the development of national land planning.

The Forest Harvesting Inventory is the holder's responsibility of logging rights, with the technical assistance of the competent ministerial department. The harvesting inventory shall contain various data, such as lists of species, estimated commercial volumes, maps of the forest composition at the date of the inventory, and after the planned harvesting, the forest regeneration potential, the percentage of burned land, and other forest parameters. The Institute shall approve the results of the submitted inventory for Forest Development.

The Management Forest Inventory is required for all individuals or legal persons, public or private, carrying out activities related to the harvesting of forests.

The Forest Ministerial Department ensures that all interested parties have constant information on the forest inventories of different types (TimberLex – Angola, 2021).

Presidential Decree No. 171/18, art. 31 (Obligations of the holder of logging rights) under item (m) mentions adopting and implementing fire control, forest fire-prevention, and firefighting plans of different origins regard coal production, shifting agriculture, and hunting.

For Annual Forest Harvesting License, Decree No. 171/18, art. 77 requires, among other application requirements, to include: 

•   A map of scale 1/100,000 scale of the area to be explored, prepared by the local services of the Institute of Geodesy and Cartography of Angola (IGCA), accompanied by a description of the intended area and respective area information on the legal situation of the land.

•   Description of the proposed forest area if there is no previous forest inventory, describe the forest types in the area and enumerate the main species present.

•   The logging plan indicates the species being exploited, the harvesting method, and the types of products the applicant proposes to obtain.

•   Environmental Impact Assessment and Environmental Management Plan.

Angolan law lays down various instruments and procedures for forest legal management and harvesting. The Law on Forest and Wildlife Basic Legislation provides for a National Forestry Plan at a national level. The said plan is defined as a sustainable and integrated management tool that aims at planning and implementing technical and administrative actions. The said Act also provides a Forest Management Plan, defined as a technical document indicating the sources of commercial harvesting of forest resources, aiming to ensure sustainable resource management. The plan indicates, among other things, the species and quantities of resources to be cut or hunted in each period, the technologies to be used, and the areas or zones where harvesting takes place. Forest harvesting under a concession is carried out according to detailed management plans. A simplified management plan is required (Presidential Decree No. 171/18 approving the Forestry Regulation, Law No. 6/17 on Forest and Wildlife Basic Legislation).

Forest inventories

National level inventories are the responsibility of the State. It is the responsibility of the Forest Ministerial Department to order the implementation of the National Forest Inventory at least every ten years. The Institute prepares the National Forest Inventory for Forest Development. The National Forest Inventory collects information covering all types of forests on the national territory to support the formulation of forest policies, the National Forest Plan, and the development of national land planning.

The Forest Harvesting Inventory is the holder's responsibility of logging rights, with the technical assistance of the competent ministerial department. The harvesting inventory shall contain various data, such as lists of species, estimated commercial volumes, maps of the forest composition at the date of the inventory, and after the planned harvesting, the forest regeneration potential, the percentage of burned land, and other forest parameters. The Institute shall approve the results of the submitted inventory for Forest Development.

The Management Forest Inventory is required for all individuals or legal persons, public or private, carrying out activities related to the harvesting of forests.

The Forest Ministerial Department ensures that all interested parties have constant information on the forest inventories of different types (TimberLex – Angola, 2021).

Presidential Decree No. 171/18, art. 31 (Obligations of the holder of logging rights) under item (m) mentions adopting and implementing fire control, forest fire-prevention, and firefighting plans of different origins regard coal production, shifting agriculture, and hunting.

For Annual Forest Harvesting License, Decree No. 171/18, art. 77 requires, among other application requirements, to include: 

•   A map of scale 1/100,000 scale of the area to be explored, prepared by the local services of the Institute of Geodesy and Cartography of Angola (IGCA), accompanied by a description of the intended area and respective area information on the legal situation of the land.

•   Description of the proposed forest area if there is no previous forest inventory, describe the forest types in the area and enumerate the main species present.

•   The logging plan indicates the species being exploited, the harvesting method, and the types of products the applicant proposes to obtain.

•   Environmental Impact Assessment and Environmental Management Plan.

Access to harvesting rights of forest resources for profit and non-profit purposes shall be established by granting annual forest concessions and harvesting licenses. The Forest Ministerial Department is responsible for authorising the conclusion of concession contracts (see 1.2) and the issue of Annual Forest Harvesting Licenses. 

Annual Forest Harvesting Licences

Law No. 6/17 Forest and Wildlife Basic Law states that the Annual Forest Harvesting Licences shall be issued only for one season of felling or harvesting of wood and Non-Timber Forest Products and shall expire on October 31 of the year in which they were issued or on an earlier date expressly mentioned in the permit. Decree No. 115/21 of May 5, 2021, established the calendar for issuing the Annual Forestry Harvesting Licence during the Forest Campaign period. Decree No. 95/21 of April 15, 2021, established quotas for issuing Annual Forest Harvesting Licences for different provinces and species (for round wood, firewood, and charcoal).

Annual Forest Harvesting Licences shall only be issued for areas not exceeding 1,000 hectares in production forests, in Community Forest areas, on land from previous concessions, or reserves extinguished or deactivated. All Annual Forest Harvesting Licenses holders shall provide the grantor with a report of the activity developed.

Community Forest Harvesting can be collective, individual, or collective in partnership with third parties. The harvesting of forests by communities shall take place on the public domain or communal land. The communities have the right to use and enjoy other land granted through licenses (Forest and Wildlife Basic Law, art 74).  

Logging rights in natural forest is reserved for the citizens of Angola. Foreign nationals can only give administrative and logistical support to Angolan nationals regarding annual harvesting licenses. Therefore, all existing Annual Forest Harvesting licenses in the natural forest must be held and operated by Angolan nationals. However, logging activities in forest plantations can be carried out by natural and legal persons who fulfill the requirements of the Forest and Wildlife Basic Act (Law No. 6/17 Forest and Wildlife Basic Law, art. 77)

Application and issuance of Annual Forest Harvesting Licence

When applying for an Annual Forest Harvesting Licence, individuals must provide proof of Angolan citizenship or a social agreement in the case of legal or collective persons. It is also required to prove financial capacity adequate to the volume of wood applied for, such as a bank statement and proof of ownership of logging equipment (Law No. 6/17 Forest and Wildlife Basic Law, art. 77). In the application and issuance of Annual Forest Harvesting Licenses. 

Suppose an application for an Annual Forest Harvesting License is successful and the applicant accepts the technical and administrative conditions. In that case, the IDF Director-General issues the Annual Forest Harvesting License after the payment of fees due at the local tax office of the region where the logging is to be carried out (Law No. 6/17, art.77). Logging rights are not transferrable unless proven incapacity of the respective holder; the heirs become authorized representatives (Law no. 6/17, art 54). 

Article 168 (sanctions) and Article 169 (accessory punishment measures) of the forest regulation provide a list of sanctions for infringements against both the forest and basic wildlife law and the forest regulation; these include in item e), a fine for transfer of the license and forest harvesting by third parties (TimberLex – Angola, 2021).

Access to harvesting rights of forest resources for profit and non-profit purposes shall be established by granting annual forest concessions and harvesting licenses. The Forest Ministerial Department is responsible for authorising the conclusion of concession contracts (see 1.2) and the issue of Annual Forest Harvesting Licenses. 

Annual Forest Harvesting Licences

Law No. 6/17 Forest and Wildlife Basic Law states that the Annual Forest Harvesting Licences shall be issued only for one season of felling or harvesting of wood and Non-Timber Forest Products and shall expire on October 31 of the year in which they were issued or on an earlier date expressly mentioned in the permit. Decree No. 115/21 of May 5, 2021, established the calendar for issuing the Annual Forestry Harvesting Licence during the Forest Campaign period. Decree No. 95/21 of April 15, 2021, established quotas for issuing Annual Forest Harvesting Licences for different provinces and species (for round wood, firewood, and charcoal).

Annual Forest Harvesting Licences shall only be issued for areas not exceeding 1,000 hectares in production forests, in Community Forest areas, on land from previous concessions, or reserves extinguished or deactivated. All Annual Forest Harvesting Licenses holders shall provide the grantor with a report of the activity developed.

Community Forest Harvesting can be collective, individual, or collective in partnership with third parties. The harvesting of forests by communities shall take place on the public domain or communal land. The communities have the right to use and enjoy other land granted through licenses (Forest and Wildlife Basic Law, art 74).  

Logging rights in natural forest is reserved for the citizens of Angola. Foreign nationals can only give administrative and logistical support to Angolan nationals regarding annual harvesting licenses. Therefore, all existing Annual Forest Harvesting licenses in the natural forest must be held and operated by Angolan nationals. However, logging activities in forest plantations can be carried out by natural and legal persons who fulfill the requirements of the Forest and Wildlife Basic Act (Law No. 6/17 Forest and Wildlife Basic Law, art. 77)

Application and issuance of Annual Forest Harvesting Licence

When applying for an Annual Forest Harvesting Licence, individuals must provide proof of Angolan citizenship or a social agreement in the case of legal or collective persons. It is also required to prove financial capacity adequate to the volume of wood applied for, such as a bank statement and proof of ownership of logging equipment (Law No. 6/17 Forest and Wildlife Basic Law, art. 77). In the application and issuance of Annual Forest Harvesting Licenses. 

Suppose an application for an Annual Forest Harvesting License is successful and the applicant accepts the technical and administrative conditions. In that case, the IDF Director-General issues the Annual Forest Harvesting License after the payment of fees due at the local tax office of the region where the logging is to be carried out (Law No. 6/17, art.77). Logging rights are not transferrable unless proven incapacity of the respective holder; the heirs become authorized representatives (Law no. 6/17, art 54). 

Article 168 (sanctions) and Article 169 (accessory punishment measures) of the forest regulation provide a list of sanctions for infringements against both the forest and basic wildlife law and the forest regulation; these include in item e), a fine for transfer of the license and forest harvesting by third parties (TimberLex – Angola, 2021).

Value Added Tax (VAT) has been introduced in Angola by Law no. 7/19 of 24 April 2019.

The General Regime for VAT payment is 14%. VAT is levied upon a) the transmission of goods and services rendered within the Angolan territory; and b) the import of goods. 

Among the taxpayers subjected to VAT are: 

a)   Any individual or entity that performs any of the acts to which VAT is levied; 

b)   Any individual, legal entity, or entities that acquire services from non-resident entities without domicile, headquarters, or permanent establishment in the national territory; 

c)   The estate, the governmental entities, Public Institutes, Municipalities, Public Institutions of pension and social security, except when they act within their powers of authority and provide no distortions to the competition arise; 

d)   Political parties and coalitions, trade unions, and religious institutions are legally constituted, performing the operations that are subjected to VAT (Ernst and Young, 2021).

General VAT regime

All entities with a turnover or goods import operations higher than AOA (kwanza-local currency) 350 million are liable to the General VAT regime. These taxpayers and those that choose to be framed in the standard regime should assess VAT on the supplies of goods and services and, in principle, can deduct the VAT incurred on their purchases. 

Entities operating in the manufacturing industry are always required to be under the standard VAT regime.

The taxpayers subject to this regime should:

•   Assess VAT on invoices issued.

•   File a monthly VAT return up to the last working day of the end of the month following the one in which the operations were carried out (file all the respective annexes of the VAT return).

•   Have proper accounting according to Angolan PGC (Angolan GAAP).

•   When carrying out exclusively exempt operations, these taxpayers must pay stamp tax on the receipt at a rate of 7% (Ernst and Young, 2021).

Simplified VAT Regime

Angolan Law no. 42/20 of 31 December 2020, approving the State Budget for 2021, introduced a new VAT Regime - Simplified VAT Regime - which applies to taxpayers whose annual turnover and/or import operations the previous 12 months was equal to AOA 350 million or less. 

This new Simplified VAT Regime, if applicable to a taxpayer, provides for:

•   VAT to be charged at a rate of 7% on the turnover amount effectively paid by the customers related to the sales of goods and services subject to VAT and not exempt.

•   VAT to be charged (through the reverse-charge mechanism) at a rate of 7% on the services acquired and paid to non-resident entities.

•   Recovery of 7% of the VAT incurred on the acquisitions of goods and services (including import VAT).

•   Refund claims of the correspondent VAT credit.

•   Concerning VAT-exempt transactions performed, payment of Stamp Tax at a rate of 7% on the receipt of discharge of such transactions related to item 23.3 of the table attached to the Stamp Tax Code, which may be allowed against income tax (Ernst and Young, 2021).

Taxpayers under the Simplified VAT Regime may opt to be included in the standard VAT regime if all the following requirements are fulfilled:

•   Organised accounting according to Angolan PGC (Angolan GAAP).

•   Absence of tax and customs debt.

•   Registration duly updated in the system of the General Register of Taxpayers.

•   Issuance of invoices/equivalent documents through certified billing software.

•   Submission by electronic data transmission regarding the VAT returns and the elements of its accounts (PWC, 2021). 

Scope of VAT

•   Taxpayers whose annual turnover or import transactions are equal to or less than AOA10 million are excluded from the scope of VAT (PWC, 2021). 

Law no. 26/2020, of 20th July 2020, approved several amendments to the Industrial Tax Code. By the amendment, the Standard Tax Rate was reduced from 30% to 25%. In addition, the new law replaced the two existing taxation groups (Group A and B) with a General and a Simplified regime.

Currently, the tax rate (25%) is on the profits deriving from business activities carried out in Angola by resident entities or non-resident entities with a permanent tax establishment, as defined by Angolan domestic legislation (PWC, 2021). 

The General Tax Code, Law No. 21/14, of October 22 sets the general basis for tax in Angola to include income tax. General Tax Code (Law 21/20) was amended in July 2020. 

Law no 10/14 of October 22, 2014 (Industrial Tax Code) sets the basis for taxation of industrial activity, including forest processing. The Industrial Tax Code was amended by Law no. 26/2020 of 20 July. Among the key amendments is the subjection of persons and entities to industry tax. That is in addition to commercial entities; the industrial tax now applies to civil firms with or without a commercial activity object, cooperatives, foundations, autonomous funds, public companies, and other public or private law bodies with headquarters or place of effective management within the Angolan territory (PWC, 2021).

The Constitutional Law of the Republic of Angola states that the state shall take the requisite measures to protect the environment and species of flora and fauna throughout the national territory and maintain the ecological balance. Angola's forests and wildlife are defined as national heritage, whose protection constitutes an obligation of the state, citizens, and legal persons carrying out economic activities related to them.

The Law no. 6/17 of 24 January 2017 (Forests and Wildlife Basic Law), Chap. II, art II(j), the State is required to ensure the protection of endangered species, endangered ecosystems, and vulnerable or in any way requiring special protection measures. Under Article 14(f), timber rights holders, among other forest use right holders, must refrain from harvesting, cutting, hunting, marketing, or otherwise causing harm to endangered, rare, and vulnerable species or their habitats. Protected trees benefit from the status of natural monuments. They are to be identified in territories by signboard indicating the common and scientific names of the species and the classification category. Cutting or mutilation of protected trees is prohibited.

Article 39 (operating restrictions) restricts the cutting of protected species following Article 16 (protected species), which requires logging authorisation under specified conditions. 

Protection of species

Special authorisation from the Ministry of Agriculture and Forestry is required for (Decree 171/18 of 23 July 2018, art.16): 

•   cutting of specimens of forest species classified as rare threatened or of particular ecological value; 

•   the cutting of specimens of vulnerable and endemic species. 

Harvesting restrictions are provided for protected species. 

Under Decree 171/18 of 23 July 2018, the authorization to harvest species may subsequently be suspended, reduced in quantity, or prohibited from export if new knowledge of the species concerned is obtained. The Ministry of Agriculture and Forestry is required to keep the list of rare, threatened, and endangered species up to date. Protected trees are considered natural monuments, and felling or mutilation of protected trees are prohibited. The protected trees are to be identified on the ground by a sign indicating the common and scientific names of the species and the classification certificate. (art. 16). Article 38 (2) (classification of wood producing species) of Decree 171/18 of 23 July 2018 requires the Ministerial Department, which oversees the forest sector, in coordination with the Ministerial Department, that oversees the environmental permit; to update the list of species of flora considered as protected and the list of species classification (See sub-category 1.16) in which rarity of species shall be considered together with other characteristics relevant for wood. 

It is forbidden to cut Mussivi African Rosewood (Guibourtia coleosperma). The logging ban has been in place since August 2018 (Executive decree No. 278/18) and is extended until March 2022 (Executive Decree No. 57/21 of 3rd March 2021). 

Protected and special-purpose forests

The State shall ensure that the areas of protected and special-purpose forests are defined. The Presidential decree 171/18 of 23 July 2018, art. 6(2) states that permanently protected forests may be natural or plantations. Permanently protected forests in terms of their location include: 

•   At headwaters and riverbanks within a perimeter of 50 meters and a minimum range of 50 to 500 meters, respectively.

•   Around ponds, lakes, or water reservoirs within a radius of 50 to 100 meters.

Article 5 prohibits the harvesting of forest products in permanent protection forests, except for subsistence uses or scientific purposes. 

The state, by legislation, established several national parks for protecting endangered ecosystems and habitats and rare, threatened, and endangered species (TimberLex – Angola, 2021).

Environmental rights are clearly expressed in Article 39 of the National Constitution, 2020 and encourage the state to take necessary measures to protect the environment and the species of flora and fauna in the country; maintain the ecological balance, ensure the correct location of economic activities, and the sustainable development and use of all-natural resources, respect for the rights of future generations and the preservation of species.

Forestry/environmental laws include environmental protection. Users of forests for economic activities to carry out activities to minimize the negative environmental impacts of activities on forest ecosystems (Forest and Wildlife Basic Law No. 6/17, art. 14(e) requires). Forest harvesting rights holders are to use forest resources sustainably (Forest and Wildlife Basic Law No. 6/17, art. 70) and ensure (a) compliance with existing legislation, in particular of the provisions of the Forest and Wildlife Basic Law, the legislation on waters, land, town planning and land use planning and environmental protection, as well as the conditions laid down in the concession contract or community license.

The Presidential Decree No. 171/18 of 23 July 2018 (the Forest Regulation), art. 114 requires that an Environmental Impact Assessment be imposed by state entity: (a) for planting projects on areas larger than 1,000 hectares; (b) for planting projects which the land on which the person concerned already holds title to land by law and land that is granted for forest planting. Article 95(3) of the forest regulation further clarifies that logging or clearing of an area over 200 hectares may require prior Environmental Impact Assessment at the expense of the person concerned. Article 77, which gives the detailed procedure for the award of the Annual Forest Harvesting License, includes the applicant's requirement to hold an EIA report approved by the Ministry of Environment and the Ministry of Agriculture and Forestry for the area for which the application is made.

Law no. 5/98 of 19 June (Law on the Environment) establishes the basic principles to be carried out by the Government of Angola on the following issues: 1) natural heritage protection, 2) ecosystem preservation, and 3) environmental conservation, to guarantee the quality of human life. This law concerns the National Programme of Environmental Management, to be drawn up according to the national legislation. It specifies conditions and requirements to be satisfied by environmental quality standards. The Decree No. 51/04 Environmental Impact Assessment establishes the environmental requirements to be completed to perform any environmental activity. It has an Annex listing all the activities requiring an EIA authorization. Decree No. 59/07 (Environmental Licensing) regulates environmental licensing of all activities that may have a significant environmental and social impact because of their nature, location, or size. Particular attention is paid to the regulation of the licensing procedure and the licensees' rights and duties. It establishes a national registry of environmental consultants to support the licensing process. The Annexes provide the license models for both operations and installations. 

The General Labour Law (No. 7/15 of 15 June 2015), article 81 (general employer obligations), requires employers to take necessary measures for their workers' occupational health and safety and include the provision of PPEs. Article 83 (obligation of the worker) also makes it an offense for workers who have received PPEs, and the necessary instructions to not correctly use the collective and individual protection equipment and further not to ensure its maintenance. Under Article 85 (2) (employer emergency obligations), employers must inform the competent authorities of an accident or illness in the event of occupational accidents or illness within the time limit and follow the procedure outlined in the legislation. Article 87 (Authority of the General Labour Inspectorate) recognises that supervision of compliance with regulatory provisions on occupational health and safety is the responsibility of the Inspector General of Labour. Article 91 (medical examination) permits health authorities to carry out medical examinations of workers. The health authorities shall carry it out without the special examinations and care required by the characteristics of certain types of labor provided for in the applicable regulations.

The Inspector-General of Labour is to inform and advise on matters of legal and employment relations in regards to legislation on working and employment conditions, a system of protection of employment and unemployment of workers and payment of contributions of social security, as well as propose the necessary measures to overcome the gaps in labor legislation (The Decree No. 9/95 of 21 April 1995, Decree on the Regulation of the General Labour Inspectorate). Enforcement of occupational hygiene, safety, and health standards is the responsibility of the Inspector General of Labour through inspection staff of the Labour Directorate (art. 3 and art. 25). The inspection staff is to carry out any examinations, inspections, investigations, inquiries, and other necessary steps to ensure that labor standards are complied with.

The general labor law and Forest and Wildlife Basic law contain provisions on working conditions. In particular, the Forests and Wildlife Basic Law states that Angolan citizens must be preferred in the recruitment and training for forestry activities.

Provisions on working conditions are contained in the general labor law and forestry legislation. In particular, the Forests and Wildlife Basic Law states that Angolan citizens must be preferred in the recruitment and training for forestry activities.

Fundamental collective rights of workers have been recognized, and the general right to work. Forced labor is prohibited and underage work, discriminative behaviors, and degrading or inhuman treatments.

Angola has ratified 34 International Conventions related to Labour, namely C087 - Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87); C098 - Right to Organise and Collective Bargaining Convention, 1949 (No. 98); C029 - Forced Labour Convention, 1930 (No. 29); C105 - Abolition of Forced Labour Convention, 1957 (No. 105); C006 - Night Work of Young Persons (Industry) Convention, 1919 (No. 6); C081 - Labour Inspection Convention, 1947 (No. 81); C138 - Minimum Age Convention, 1973 (No. 138) Minimum age specified: 14 years; C182 - Worst Forms of Child Labour Convention, 1999 (No. 182); C026 - Minimum Wage-Fixing Machinery Convention, 1928 (No. 26); C012 - Workmen's Compensation (Agriculture) Convention, 1921 (No. 12); and C017 - Workmen's Compensation (Accidents) Convention, 1925 (No. 17). 

These contents have been included in the country’s legislation, starting from the highest law which the Constitution of the Republic of Angola of 21 January 2010. Article 60 (ban on torture and degrading treatment) of the constitution clearly states that no one shall be subjected to torture, forced labor, or cruel, degrading, or inhuman treatment. Article 50 (trade union freedoms) recognizes that all workers have the freedom to create trade union organisations to defend their collective and individual interests. In contrast, Article 21(h) states that one of the fundamental tasks of the state is to promote equal rights and opportunities between Angolans, regardless of origins, race, party affiliations, sex, color, age, or any other form of discrimination. Several labor laws have been enacted to give meaning to these constitutional provisions.

The General Labour Law (7/2015) of 15 June 2015 is the main statute governing all employment relationships in Angola. Article 13 (1 and 2) (capabilities) sets the minimum working age. People aged 14 and 18 require authorisation to work by a legal representative, employment center, or other appropriate institutions. The article also gives meaning to the conclusion of work contracts. Though from the General Labour Law, an employment agreement does not need to be made in writing, a written employment agreement is required in some cases, such as employment agreements entered into with foreign employees and traineeship agreements. 

Article 161 (fixed national minimum wage) confirms the periodic setting of a national minimum wage by the Executive Authority, which belongs to the President of the Republic in Angola. Article 5 (1 and 2) (prohibition of forced or compulsory labor) states that forced or compulsory work is prohibited. Article 7 (1) (related rights as the right to work) states the fundamental the right to work, the right to freely exercise a profession adds that the fundamental rights of workers shall be: (a) freedom of association and consequent right to organize, use and exercise of trade union activity b) the right to negotiate with the collective; c) the right to strike; (d) the right to meet and participate in the business activity of the enterprise. Article 4 (1) (Right to work) states the right to work and bans discrimination from indicating that every citizen has the right to freely choose work, with equal opportunity and without any discrimination based on race, gender, ethnic origin, marital status, social origin and status, religious reasons, political opinion, union affiliation, and language.

Decree no. 9/95 of 21 April 1995 is the General Labour Inspectorate Regulation. Article 4 (specific assignments) specifies the duties of the General Labour Inspectorate to include checks for the regular processing of social security discounts and the payment of contributions. Presidential Decree No. 136/19 of 5 May 2019 (unique social register) gives specific regulations on registration for social security. While decree No. 38/08 of 19 June 2008 establishes the legal regime for contractual ties and contribution for compulsory social protection. In Chapter III (contributory regime), Article 12 (1) of this law sets the contribution rate for compulsory social protection at 3% for the employee and 8% for the employer of the worker's total salary.

The Forest and Wildlife Basic Law (Law no. 6/17) establish the norms that seek to guarantee the conservation, rational, and sustainable use of forests and wildlife in Angola, as well as the general basis for the exercise of activities related to forestry under Article 62 (b) (Types of Rights) which recognises the right to use forest land for community needs. Article 73 (about the position of rights) clarifies that the right of logging shall be exercised with respect for the rights of third parties regarding existing natural rights and easements within the concession area; in particular access by local communities to the natural resources not covered by the law of forest exploration. Article 14 (rights and duties for the pursuit of economic activity in the forestry and wildlife domains) item (c) requires that the pursuit of economic activities within the Forestry and the Wildlife sector respect the rights of third parties, in particular of rural communities and holders of other rights to natural resources existing within the area of forestry or wildlife harvesting, in particular as regards easements of water, of passage, and mining; (d) and to respect established sites of cultural, ecological, economic, religious or spiritual importance, over which the respective communities have rights. 

The Land Law (No. 9/04) Article 37 on Customary Rights recognizes the land rights of families and rural communities that have occupied these lands for several years.

The Presidential Decree No. 171/18 of 23 July 2018 (approving the forestry regulation), which regulates the forest and basic wildlife law under Article 32 (harmonization and overlap of rights), clarifies that (1) the allocation of the right to forestry in a given area does not prevent the exercise of equally valid rights, earlier or later of third parties over other natural features from the same area; (2) and that the right of forest harvesting shall be exercised concerning third-party rights regarding natural resources and existing services within the concession area especially, local communities access to natural resources which are not covered by the law on logging. Article 77 (procedures) (3a) requires that the preliminary assessment by the IDF of Annual Forest Harvesting License applications comprise the analysis of the legal situation of the intended area in consultation with the local department of the Institute of Geodesy and Cartography of Angola. They are responsible for the registration of land titles. This shall be done to guarantee that there will be no overlap of areas and collision with third-party rights. 

The Forest and Wildlife Basic Law, art 21(4), guarantees that the right to subsistence use and community needs of forests and wildlife resources is governed by communities' customary norms and practices. Art 21(5) clarifies that in the case of expropriation of forest land for public utility or another land-use form of customary useful land, the community has the right to get assigned other land with identical or similar vegetation cover than that of the expropriated. Article 31 (Obligations of the holder of logging rights) of the forest regulation requires that holders of logging rights (b) recognize the customary use of forest areas necessary for local harvesting under the Forest and Wildlife Basic Law terms. Article 26 recognizes the sales of firewood and non-wood products between neighbours for (a) traditional and customary use. Under article 116, an application for forest plantation development includes (i) a copy of the title of land or title of customary use land or evidence of the steps already taken with the competent services to obtain titles required. 

Forest lands are the state’s property, but community use for subsistence and other uses is recognized in the forest area. Commercial harvesting rights to third parties in community forests should be processed only by prior consent of the community present in the area where commercial forest harvesting is made. 

Presidential Decree No. 171/18 of 23 July 2018 requires;

a)   Commercial harvesting of forest products must not override the right of subsistence use and communities living in the area where such harvesting is authorized (art 22), and;

b)   that the granting of commercial harvesting rights to third parties in community forests should be processed only with the prior consent of the community (art 22). 

c)   An application for an Annual Forest Harvesting license must include a statement by traditional authorities and municipal administration where the applicant intends to carry out logging (art. 77). 

d)   Commercial, industrial and community plantations or energy sources located on community land must be developed by the communities themselves. If by the initiative of others, then the prior agreement with the communities is required (art, 113(1c)).

Article 39 (2) (Inventory and Classification of Species and their Habitats) of Law no. 6/17 Forest and Wildlife Basic Law requires the state to ensure the implementation of research projects aimed at the identification and classification of wild flora and fauna species, as well as their ecosystems.

Within the Presidential Decree No. 171/18 of 23 July 2018 (approving the forestry regulation), which regulates the forest and wildlife basic law, Article 38 (1) (classification of wood producing species) provides clear criteria for the classification of timber species. These include commercial value, scientific value, rarity, utility and strength, wood density group, and a class of technological quality. A detailed list is given in Annex 1 of the regulation that all timber classification in Angola must follow. 

Decree No. 171/18, art 40 (classification of log and sawn wood), classifies;

1)   Round log as wood resulting directly from the felled tree stem, is cylindrical or conical in shape, slightly oval or tortuous, of a length of 6.00 meters or more (for dense rainforest), 2.80 meters (for open forest). Minimum felling diameter required by law differs between species, and;

2)   Sawn wood as the direct result of the splitting of the logs into pieces cut longitudinally by saw, regardless of its section dimensions rectangular or square, and as: (a) square block or fillet; b) board; c) beam; d) vigota; e) barrote; f) clapboard; (i) other commercially accepted forms. The detailed dimensions of these defined sawn wood are given in the Annex VIII of the regulation.

There are provisions in place for registering and issuing a certificate to cover forest products harvested under a license but which could not be transported out of the forest during the validity period of the license (Forests and basic wildlife law, art 86). Inspection officers have the power to inspect any suspect vehicle, vessel, or aircraft used in the transport of any forest products to check if these do not originate from a legal origin (art 152).

The forest actors required to display relevant documents covering their forest products whenever required by the forest inspectorate or by the tax and customs policy include (Forests and basic wildlife law, Article 148): 

a)   Transporters of forest products; the certificate of origin and a transit guide/permit are required for transit checks.

b)   The sellers; For products sold by an authorized entity, the sales receipt, the copies of the certificate of origin, and the transit guide. 

c)   The buyer; the transit certificate and transit permit/certificate.

d)   Processing units for products being processed or deposited in the yards of the processing units. 

For a consignment moving within the same locality (intra-provincial trade) from one operator to the other for sale, processing, or using the following documents are required: a consignment note or equivalent document accompanied by copies of the certificate of origin and waybill are required. 

The inspectorate office can retain these documents until full clarification is reached whenever illegality is suspected. 

Decree No. 171/18 Article 150 (transport of logs and sawn wood) of the Forests and basic wildlife law provides that 1) the inter-provincial transport of the timber in log form is prohibited 2) intra-provincial transport of Round wood in containers and tipper trucks are also prohibited. Inter-provincial transport of Round wood is to be carried out on vehicles with a platform box with side braces or stanchions following the models set out in Annex VII or on lorries adapted for transporting timber round form as provided in the regulation.

Article 151 (forest product warehouses) make provision for forest product warehouses located in nearby zones of production and circulation of forest products with infrastructures and services intended for the reception of forest products, in particular, timber from logging areas and semi-processed units for checks and internal and external marketing by the various forest operators. The article clarifies that no forest products intended for sale or marketing can be displayed without first passing through one of the warehouses existing in the country for checks by the Forestry Development Institute (IDF), the Tax Police, the General Tax Administration, Commerce, and Commercial Banking.

Article 144 (general restrictions) of the regulation gives the sources of timber which can be transported, stored, transferred, marketed, or displayed for sale as forest products from (a) Annual Forest Exploitation Licenses granted following terms of the forest regulation, (b) forestry concessions granted following the forest regulation, (c) established commercial and industrial plantations following the terms of the forest regulation, (d) community forest plantations established by the terms of the forest regulation, (e) from sales made by the state as a result of seizures of infringement of the provisions of this Regulation. The article further states that the possession, import, export, reproduction, and /or transit in the national territory of genetically modified forested species and their parts or products is not allowed except under the authorization of the IDF.

Section I0 Internal Transit, Article 145 (Required Certificate of Origin and Transit Guide) of the forest regulation states that 1) no forest products from farms in natural forest or plantations can be transported within the national territory, by any land or waterway, without their certificates of origin and transit guide based on the operating license or in the forest concession contract. The certificate of origin must be issued and signed by the Head of the IDF Provincial Department, where Annual Forest Harvesting is carried out. Transit permit shall be completed and signed by the holders of forest concession contracts, annual logging, and plantation operations and checked by: a) resident inspector, in the case of forest concession contracts and harvesting of forest plantations; b) head of the Provincial Department of the IDF of the area where the exploration takes place and in his absence, by the Chief of Technical and Supervisory Section, in the case of Annual Forest Exploration Licenses. 

Forest products coming from outside Angola and passing through the national territory to other countries are to have a certificate of origin and a phytosanitary certificate issued by the competent authorities of the country of origin.

Article 168 (infringements and sanctions) details the sanction related to the infringements.

The Industrial Tax Code (Law 19/14 of October 22, 2014), Article 50º of the application for tax years from 2014 onwards, and as amendments on the Industrial Tax Code – Law no. 4/19, of 18 April call for the obligation of documentation applicable to tax years and transactions beginning or occurring on or after 1 January 2013 . Taxpayers will have to justify arm's length pricing in the cases of commercial transactions of the taxpayer with other “special relations” entities, regardless of whether these transactions are subject to industrial tax. This concerns domestic and cross-border transactions. The rules generally cover commercial transactions, including any transaction of goods, rights, or services, including financial transactions.

Decree no. 147/13 states that an entity-specific transfer pricing file would have to be prepared and submitted to the tax administration within six months of the end of the tax year. This transfer-pricing file must be prepared annually and must detail the relationships and prices established by the large taxpayers with the companies and entities with which they have “special relations.” The entity-specific transfer pricing file must contain:

•   describes the taxpayer and the group structure

•   describes the industry/sector

•   identifies the related entities with which the taxpayer has carried out transactions and characterise the special relationship existing between them

•   describe and quantify the related transactions by nature of the transaction and by counterparties

•   analyse the split of functions and risks of each transaction between the involved parties

•   select the transfer pricing method to validate the terms and conditions applied, and

•   present the transfer pricing economic analyses to validate each transaction. 

Article 152 (1d) (export of forest products) of the Presidential Decree No. 171/18 of 23 July 2018 (approving the forestry regulation) make provisions for the application to the Forestry Development Institute (IDF) Director-General, requesting the phytosanitary and exports of forest license to include sales invoice to the buyer based on reference minimums prices. The forest regulation defines minimum reference prices as the reference price for exported timber calculated based on the average prices practiced in the main international markets. The export will not be allowed for products below the minimum reference price.

The Angolan Customs Code, approved by Decree-Law No. 5/06 of 4 October, sets the customs requirements for general imports and exports, including timber, complemented by sector-specific requirements. For all exports and imports, the law requires original Air Waybill (AWB)/ Bill of Lading (BL), original commercial invoice (listing HTS codes for each item), Packing list, Angolan Loading Certificate issued in the country of shipment, Import License, Phytosanitary Certificate issued by the relevant ministry and in the case of timber by the Ministry of Agriculture and Forestry.

Article 87(2) of the Forests and Wildlife Basic Law (Law no. 6/17 of 24 January 2017) clearly states that the export of forest products is only allowed upon presentation of the Annual Forest Harvesting License, Certificate of Origin, Transit permit/Certificate, and Phytosanitary Certificate. Item 3 of the same article requires import of forest products to obtain authorization from the Ministry of Agriculture and Forestry upon presentation of proforma invoices covering the product, Phytosanitary Certificate, and model certificate of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) issued at the source of import.

Decree No. 171/18 Article 152 (exporting forest products) of the regulation outlines the required process for exporting forest products. The process begins with an application by the harvesting company/expert to the Forestry Development Institute (IDF) general director, requesting Phytosanitary Certificate, and Export certificate for forest products as well as the foreign exchange declaration form in the specified format given in the regulation, including the following documents: 

a)   Copy of the Certificate of Origin of the product to be exported, accompanied by Transit Permit/Certificate and in case of harvesting rights holders; 

b)   Commercial Invoice issued by a company or operator recognized by the IDF in the case of wood purchased from third parties; 

c)   Specification list containing dimensions and volume of wood pieces; 

d)   Commercial invoice to a buyer based on minimum price reference 

e)   Declaration of phytosanitary treatment of wood issued by a company accredited by the IDF; 

f)   Declaration of the non-tax debtor; 

g)   Declaration of registration at exhibitions and imports 

h)   Bank Payment for receipt corresponds to the invoice issued by a bank outside the country in favor of a bank of exporter account domiciled in Angola. 

The export of endemic or classified forest species as vulnerable requires permission from the IDF.

Article 144 (general restrictions) of the regulation gives the sources of timber which can be transported, stored, transferred, marketed, or displayed for sale as forest products from (a) annual operating licenses granted following terms of the forest regulation, b) forestry concessions granted following the forest regulation and c) established commercial and industrial plantations following the terms of the forest regulation, (d) community forest plantations established by the terms of the forest regulation, e) from sales made by the state as a result of seizures of infringement of the provisions of this regulation. The article further states that the possession, importation, exportation, reproduction, and/or transit in the national territory of genetically forested species and their parts or products is not allowed except under the authorization of the IDF. Article 144 (general restrictions) prohibits the possession, import, export, reproduction, and/or transit in the national territory of genetically modified forested species as well as their parts or products, except under the authorization of the IDF.

Registration of importers/exporters

The Presidential Decree 74/17, 2017, art 4 sets out the registration for the application for Exporters and Importers Registration (REI). Importers and exporters register their REI to the Ministry of Commerce (i.e., REI Registration). REI registration requires a) an ID, b) business registration, and c) proof of payment for REI application, The NIF (Tax ID). 

When issued, export registration certification is to be renewed every year and therefore should always be valid before an entity can export. Freight forwarders complete export documentation, and when approved (validation at the external trade department), it then goes to the customs division of the General Tax Administration and National Bank (for the payment of the letters of credit). Validation includes checks to ensure the exported forest products meet the reference pricing for timber against transfer pricing. The criminal investigation agency also does the checks at the Ministry of trade. Angolan import duty rates were adjusted in August 2018 by Presidential Decree no. 03/18 May 2018. The Presidential Legislative Decree No. 3/18 of May 09 approves the customs tariff of Import and Export Rights. The Rectification no. 17-18 Customs Tariff gives the details of custom tariff.