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Angola Tax 101

Who is liable to pay tax in Angola 

Residence is not defined in Angolan tax law, as individuals are taxed, irrespective of their residence, on Angola source income, wherever paid. 

Employees are liable for revenue taxes on any Angolan-source employment income. Individuals receiving work-related income and/or business and professional income in Angola are subject to tax if the compensation is paid by an Angolan entity or if the respective cost of such income is allocated to an entity with a head office, residence or permanent establishment in Angola.  

Non-Resident – A non-resident individual is liable to have earned income tax on Angola source income if he renders dependent or independent personal services which are paid directly or indirectly by an Angolan entity. Employment derived by non-residents is subject to a final withholding tax will be withhold at a rate of 10,5 % on the income receive in Angola.  

Expatriates Tax is due by individuals, whether resident or not in Angola, whose income arises from services rendered within/to Angola. There is no concept of “resident” in Angola, for PIT purposes. Employers are subject to the same tax obligations when hiring expatriates or Angolan citizens. There are no taxation differences between expatriates performing a temporary activity in Angola, or expatriates performing long term or even “lifetime” activities in the country. 

Tax Statuses / Types of employment 

  • Standard Employment – the employee is subject to tax using the progressive tax tables. INSS social security is applicable.  
  • Non-Resident – an employee is subject to INSS social security and tax @ fixed rate 10.5%. 
  • Non-Resident @ Progressive Rate – the employee is subject to tax at the progressive rate using the progressive tax tables. The INSS social security must be reduced from taxable income first. 
  • Non-Resident @ Progressive Rate Exempt from INSS – the employee is subject to tax at the progressive rate using the progressive tax tables and exempt from INSS social Security. 
  • Expat: Exempt from INSS – an employee will be subject to tax and exempt from INSS social security. 
  • 50% Disabled and War Veterans – an employee will be subject to INSS social security and exempt from tax. 
  • Group B Managers, Directors, Independent Contractors – an employee is subject to tax @ fixed rate 15%. INSS Social security (tax code INSSEE) is reduced from taxable income first. 
  • Independent Contractors Exempt INSS – an employee is subject to tax @ fixed rate 15% and exempt from INSS social security. 

Taxable Income 

Irrespective of the individuals’ nationality or tax residency status, PIT applies to remuneration, wages, salaries, fees, bonuses, and any other additional remuneration, including benefits in kind. 

 

Taxable Income is divided into the 3 below segments: 

  • Group A:  Generally applicable to the income earned by employees. The progressive personal income tax rates provided in the table above apply, with a maximum rate of 25%.  
  • Group B:  Income earned by self-employed workers.  
  • Group C:  Income earned by individuals carrying out an industrial or commercial activity. 
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