| Chargeable Income (AOA) | Tax Rate |
| 0 to 25,000 | 0% |
| 25,001 to 30,000 | 5% |
| 30,001 to 35,000 | 6% |
| 35,001 to 40,000 | 7% |
| 40,001 to 45,000 | 8% |
| 45,001 to 50,000 | 9% |
| 50,001 to 70,000 | 10% |
| 70,001 to 90,000 | 11% |
| 90,001 to 110,000 | 12% |
| 110,001 to 140,000 | 13% |
| 140,001 to 170,000 | 14% |
| 170,001 to 200,000 | 15% |
| 200,000 to 230,000 | 16% |
| 230,001 above | 17% |
Angola Tax Basis
Individuals are taxed on Angola
source income.
Residence
Residence is not defined in Angolan tax
law, as individuals are taxed, irrespective of their
residence, on Angola source income, wherever paid.
Angola
Filing status
Spouses must file separate returns;
joint filing is not permitted.
Taxable income
Individuals are subject to separate
tax on income from business, employment, investments
and property. Employment income is broadly defined
and includes benefits-in-kind.
Capital gains
Capital gains obtained by an
individual are only taxable when realised as part of
a business activity.
Deductions and allowances
Vacation and severance
pay, accident and illness benefits and the ?13th
month? bonus are excluded from taxable employment
income. Social security deductions are deductible.
Tax Rates
Employment income is taxed at
progressive rates up to a maximum rate of 17%. The
withholding tax on investment income is a final tax
for individuals. Taxable capital gains are included
in business income and taxed at the standard tax
rate of 20% for unincorporated businesses.
Professional fees are subject to withholding tax at
an effective rate of 10.5%.
Other taxes on individuals:
Capital duty
A capital duty of 0.5% is levied on
the contribution of new capital in a company.
Stamp duty
A 1% stamp duty is levied on all
business receipts. Documents and agreements are also
subject to stamp duty at nominal or ad valorem
rates.
Capital acquisitions tax ? Nil
Real property tax
Real estate tax is charged at a
rate of 30% on the taxable income arising from urban
real estate. The law establishes the rules to
calculate the taxable income for purposes of this
tax. The tax is not applied to owner-occupied
buildings used for industrial purposes.
Inheritance/estate tax ? A gift and inheritance tax
applies to gratuitous transfers of property located
in Angola by a resident. The rate is 10% for
transfers between spouses or offspring or parents
for the first AKZ 3 million, and 15% on the excess.
Net wealth/net worth tax
No Social security ? The
employee pays 3% of salary. The employer pays 8%.
Angola Corporate Tax Rates
? The standard rate of Angola corporate tax is 35%
for resident corporations and Angolan PEs of
nonresident companies.
? A reduced corporate tax rate of 20% applies for agriculture and forestry.
? Income from oil is taxed at 50% or 65.75%.
? Tax rate for mining activities is 40%.
Residence
A business is resident if its domicile,
head office or effective management or control is in
Angola.
Basis
A resident company is taxed on its worldwide
income; a nonresident is taxed only on Angola-source
income.
Taxable income
Business income is broadly defined
and includes all earnings and gains from principal
and secondary activities.
Taxation of dividends
For residents, dividends are
included in taxable income and are liable to
taxation at the standard corporate income tax rate,
subject to application of the participation
exemption. Withholding tax imposed on dividends may
be credited against the final tax liability.
Capital gains
Capital gains are taxed as business
income. An inflationary adjustment is deductible
from gains arising from the disposal of assets on
which capital allowances are not available. Rollover
relief is available.
Losses
Tax losses may be carried forward for 3
years. The carryback of losses is not permitted.
Tax Rate
The standard rate of corporate income tax
for residents (including Angolan PEs of nonresident
companies) is 35%. A reduced rate of 20% applies for
agriculture and forestry activities. Rent from urban
property is taxed at 30%. A 40% rate is provided for
mining activities. Income from oil is taxed at 50%
or 65.75% for foreign production sharing agreement
and joint venture partners.
Foreign tax credit
Angola applies the ordinary
foreign tax credit as a unilateral method for the
avoidance of double taxation for resident companies
and Angolan PEs of nonresident companies.
Participation exemption
Dividends received by an
Angola company from another Angola company are
deducted from the taxable profit of the former,
provided the recipient has held at least 25% of the
payer company for at least 2 years (or from the
incorporation date for companies operating less than
2 years).
Holding company regime
No Incentives ? Significant
incentives are available (for up to 15 years) for
foreign and local investors in priority geographic
areas and industries. These can include reduced or
nil rates of corporate tax, withholding tax, customs
duties and the transfer tax on property.
Withholding tax
Dividends ? Capital income tax at a
rate of 10% is withheld on dividends paid to both
residents and nonresidents. Exemptions apply in
certain cases and the rate may be reduced to 2.5% or
0% under an incentive package.
Interest
Capital income tax at a rate of 15% is
withheld on interest paid to both residents and
nonresidents. The rate may be reduced to 2.5% under
an incentive package.
Royalties
Capital income tax at a rate of 10% is
withheld on royalties paid to both residents and
nonresidents. The rate may be reduced to 2.5% or 0%
under an incentive package.
Other
Tax is withheld on payments for most types
of services provided to Angola residents. The
withholding tax rate is 3.5% for services related to
immovable property and 5.25% for other services.
For residents, the tax withheld on payments received
is considered as a payment on account of the tax due
at year end.
Other taxes on corporations
Capital duty
A capital duty of 0.5% is levied on
the contribution of new capital in a company.
Real property tax
Real estate tax is charged at a
rate of 30% on the taxable income arising from urban
real estate. The law establishes the rules to
calculate the taxable income for purposes of this
tax. The tax is not applied to owner-occupied
buildings used for industrial purposes.
Social security
The employee pays 3% of salary.
The employer pays 8%.
Stamp duty
Stamp duty applies to many acts,
contracts, documents, etc., at nominal or ad valorem
rates. A 1% stamp duty is levied on the monthly
turnover of companies.
Property Transfer tax
Property transfer tax is applicable to transfers of real estate (buildings and land) at a rate of 10%. The tax is due by the acquirer.
Angola Income Tax Rate for Individual Tax Payers (Proposed)
In Angola lowest Individual Tax Rate is 5% and Highest Rate is 17%
| Chargeable Income (AOA) | Tax Rate |
| 0 to 25,000 | 0% |
| 25,001 to 30,000 | 5% |
| 30,001 to 35,000 | 6% |
| 35,001 to 40,000 | 7% |
| 40,001 to 45,000 | 8% |
| 45,001 to 50,000 | 9% |
| 50,001 to 70,000 | 10% |
| 70,001 to 90,000 | 11% |
| 90,001 to 110,000 | 12% |
| 110,001 to 140,000 | 13% |
| 140,001 to 170,000 | 14% |
| 170,001 to 200,000 | 15% |
| 200,000 to 230,000 | 16% |
| 230,001 above | 17% |
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).
Corporate Tax Rate in Angola is 30% for 2004 and 25% for 2005
Capital gains derived from the disposal of business assets of
self-employed individuals are included in operational profits
and taxed at the regular Industrial Tax (corporate income tax)
rate of 35%. Capital gains from the disposal of securities,
other than those subject to Personal Income Tax or Industrial
Tax, are taxed at a rate of 10% under the Investment Income Tax.
Capital losses may not be carried forward or back. However,
under the Industrial Tax, tax losses may be carried forward for
three years.
Other Taxes in Angola
Inheritance and gift tax
Inheritance and gift tax is payable by heirs and donees. This
tax is levied on gratuitous transfers of movable and immovable
assets and rights located or transferred in Angola. Tax rates
range from 10% to 30%, depending on the value of the estate or
the gift and on the relationship of the heir or donee to the
deceased person or donor.
Property tax
Property tax is levied at a rate of 25% or 0.5% on the official
assessment value of real property, which is determined,
respectively, based on 60% of the charged rent or on the
patrimonial value of the property.
Property transfer tax
Property transfer tax is levied at rate of 2% with respect to transfers of immovable property, including long-term leases (20 years or more).
Social Security
Salaries and additional remuneration specified under law are
subject to social security contributions. No ceiling applies to
the amount of remuneration subject to social security
contributions. The rates of the contributions are 8% for
employers and 3% for employees.
Employees working transitorily in Angola are not required to
make social security contributions if they can prove that they
are covered by the social security system in another country.
Self-employed persons are subject to social security
contributions based on a predefined monthly notional salary. The
rate of the contributions is 8%, but it may be increased to 11%
if additional benefits are covered.
The fiscal year in Angola is the calendar year.
Self-employed individuals must file returns (Form M/1) in
January following the tax year-end and are notified of their
final tax liability. Income taxes on employees are withheld by
the employer under a Pay-As-You-Earn (PAYE) system, and
employees are not required to file returns.
Tax on income from capital is generally withheld by the payer.
Otherwise, the recipient is responsible for paying the tax.
Landlords must also file Urban Property Tax Form M/1 in January.
Payments (whenever the rents are not subject to withholding tax)
must be made in two installments, which are payable in January
and July. Alternatively, a request may be presented to the tax
administration to make the payments in four installments, which
are payable in January, April, July and October.