Have questions? Ask us!

Employing in Angola

At a glance

Employment in Angola

While Angola has a large labour force, the workforce is mainly unskilled and the labour market is heavily restrictive for example fixed-term employment contracts are disallowed by law and the legislated minimum wage is among the highest in Africa.

Read more

Payroll & Tax in Angola

Foreign companies operating in Angola may find it challenging to deal with the complexities of the country’s tax system. The primary concerns for a foreign company that needs to comply with tax laws in Angola are: Individual income tax (IIT) for employees in Angola, social security costs, Consumption Tax, withholding tax, business tax and permanent establishment concerns.

Read more

Immigration / Work Permits in Angola

Foreign nationals wishing to work in Angola are required to obtain a work permit. Generally, companies are subject to a maximum quota of 30% foreign nationals per company.

Read more

Incorporation

here are three types of business forms available to foreign companies in Angola. Each of these business forms has distinct advantages and disadvantages, as well as differing scope of business activities, registration requirements and minimum capital requirements. In most cases it will depend on the degree of commitment a company has to Angola and the planned business activity.

When setting up a company in Angola, you have the following options:-

  • Limited liability company
  • Branch office
  • Representative office

This article provides a general guideline for foreign businesses on entering Angola for business purposes. In particular, it looks at common pathways to establishing a business presence in Angola, generally through a corporation or branch office. In addition, various economic, tax and regulatory factors are provided throughout as a source of useful information to assist those who will enter the Angolan economy. The guide also looks at some immigration requirements such as obtaining appropriate visa status.

Data is based on the time of writing, November 2015 or closest available dates.

Read more

GEO Solutions or DIY Employment in Angola?

GEO Solutions or DIY Employment

Companies entering Angola must make a decision whether to use their own resources for a Do-It-Yourself (DIY) approach, or to use a Global Employment Organization to handle payroll and employment responsibilities. A GEO or Angola Employer of Record solution makes it faster, easier and cheaper to deploy staff if they don’t have a Angolan entity established that can run payroll.

A DIY approach will typically take 6-9 months until there is a properly incorporated WFOE ready to run payroll and cost up to 6 figures if registered capital is required. Shield GEO can deploy foreign staff in 4-6 weeks and local staff in 48 hours. Additionally Shield GEO is responsible for all compliance issues related to the employment.

Using Shield GEO Employer of Record Services in Angola

Payroll Angola
Management Fee for Employer of Record Services / Monthly Payroll Costs

Please contact us for a quote

Notes

Shield GEO pays the employee on a monthly basis, typically on the last working day of the month although we can adapt to your preferred schedule. Income tax and social security (where applicable) are deducted at source and paid to the local tax authorities.

 
Grossed 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%.

Tax Returns Supplied

Yes

Corporate Tax Requirements

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.

Employers Social Security and statutory contributions

Employers are required to contribute 8% of the employee’s gross monthly remuneration. For more details, please refer to the section on Employment.

Employees Social Security and statutory contributions

Employees are required to contribute 3% of the employee’s gross monthly remuneration. For more details, please refer to the section on Employment.

Corporate Income Tax Rate

The current corporate income tax (known as industrial tax in Angola) rate is 30%.

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.

 

Work Permits
Business Visas
Others
+1 877 457 7691
Chat Now
  • Twitter
  • Linkedin

Subscribe

to our monthly Global Mobility newsletter