Tax Figures
Corporate Income Tax
The current corporate income tax (known as industrial tax in Angola) rate is 30%.
The Angolan tax year follows the calendar year.
The annual corporate income tax returns are due by the last day of May or April, respectively, following the year to which the income relates. Tax is paid in four instalments. The first three correspond to advance payments based on the expected tax to be paid or, if unknown at that date, 75% of the taxable income computed on the previous year multiplied by the tax rate (30%). The instalments are paid in January, February, and March. The final tax must be settled by the last day of the month of April or May of the current year, depending on the group the taxpayer is classified in.
Income Tax Rate
- 0 – Kz 25,000: 0%
- Kz 25,001 – 30,000: 5%
- Kz 30,001 – 35,000: 6%
- Kz 35,001 – 40,000: 7%
- Kz 40,001 – 45,000: 8%
- Kz 45,001 – 50,000: 9%
- Kz 50,001 – 70,000: 10%
- Kz 70,001 – 90.000: 11%
- Kz 90,001 – 110,000: 12%
- Kz 110,001 – 140,000: 13%
- Kz 140,001 – 170,000: 14%
- Kz 170,001 – 200,000: 15%
- Kz 200,001 – 230,000: 16%
- Above Kz 230,000: 17%
The following rates are only applicable to employment income.
Individual business owners receiving salary income are taxed at a flat rate of 20%.
Income from self-employment is taxed at a rate of 15% (levied on 70% of gross income). The effective tax rate is 10.5%.
Payroll Tax
None
Sales Tax
Consumption tax is due on imported or locally produced goods at rates varying from 2% up to 30%. Consumption tax also applies on some services (e.g. telecommunications, utilities) with rates ranging from 5 – 10%.
Withholding Tax
Angola levies withholding tax (WHT) on payments for services provided to resident and non-resident entities at the rate of 6.5%. For Angolan taxpayers, this is regarded as an advance payment of the corporate income tax (CIT) due at the year-end; the deduction of these WHTs against tax CIT payable is now to be limited to a period of five years. For non-resident companies, this is a final tax. Services that are not subject to withholding are now expressly foreseen.
With the introduction of the Investment income tax (Imposto sobre a Aplicação de Capitais or IAC), Angola now does not have a separate WHT for dividends, interest, and royalties. The IAC rate is 15%, except for certain income, for which the rate is 10% or 5%. The tax rate is 10% for the following income:
- Dividends and repatriation of profits.
- Capital remuneration of members of ‘cooperatives’.
- Bond interest.
- Interest from shareholders’ loans. (Note: Interest on bonds, securities, or other financial instruments issued by any company, Treasury Bills and Treasury Bonds, and Central Bank Securities, as well as accrued interest on these securities, when the securities have been admitted to trade on a regulated market and have been issued with a maturity equal to or in excess of three years are taxed at a rate of 5%).
- Royalties.
Other Tax
- Stamp duty: Stamp duty is levied on several acts, contracts, transactions, documents, securities, and other operations listed in the Stamp Duty Code. Ranges from 0.001% to 0.4%, depending on the instrument.
- Urban Property tax: Urban property tax is levied on rental income earned by individuals or companies owning real estate assets. An effective rate of 15% (25% over 60% of the taxable amount of rents received by the landlord, with the remaining 40% considered as maintenance costs of the property).
- Property transfer tax: 2% tax rate on the acquisition amount is levied on the acquisition of properties located in Angola that must be paid by the purchaser.
- Inheritance and donation tax: Levied at rates between 10–30% depending on the value of goods donated or inherited.
Time to prepare and Pay Taxes
287 Hours
Employers Social Security and statutory contributions
Employers are required to contribute 8% of the employee’s gross monthly remuneration.
Employees Social Security and statutory contributions
Employees are required to contribute 3% of the employee’s gross monthly remuneration.
Payroll
Remote Payroll
A remote payroll in Angola is where a foreign company, i.e. a non-resident company, payrolls a resident employee in Angola. This applies to both local and foreign employees. One option for a non-resident company to payroll its employees (local and foreign) in Angola is to use a fully outsourced service like a GEO or PEO which will employ and payroll the staff on their behalf.
Local Payroll Administration
In some cases, a company will register their business in Angola under one of the forms available but prefer to have another company administer its payroll. This can be accomplished through a payroll provider. It is important to note that the company, as the Employer of Record, is still fully responsible for compliance with employment, immigration, tax and payroll regulations. But the payroll calculations, payments and filings can all be outsourced to the payroll provider.
Internal Payroll
Larger companies with a commitment to Angola may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete the incorporation, register the business and then hire the necessary staff. There will be a need for in country human resources personnel who have the background needed to manage an Angolan payroll and can fulfil all tax, withholding tax and payroll requirements.
Currency
Angolan kwanza, Kz, AOA
