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.
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.
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.
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.
Companies can outsource the employment and payroll of their staff in Angola to a GEO, like Shield GEO. This is possible for both foreign workers and Angolan nationals. This is the easiest, fastest and safest way to payroll staff in Angola.
Shield GEO manages all aspects of payroll for workers in Angola, including taxes, withholding, social security payments and other statutory requirements. Shield GEO becomes the Employer of Record and employs the staff on behalf of the client.
Staff are paid monthly with tax and social security deducted at source and paid to local authorities. Shield GEO will invoice the client monthly in advance of the payroll date. The invoice consists of the Total Cost of Employment (Base salary + Employers Statutory Contributions + Additional statutory contributions) and a Management Fee. Shield GEO provides the employees with payslips.
Read more about outsourced payroll and employment through Shield GEO.
Angolan kwanza, Kz, AOA
|Corporate Income Tax ?||
The current corporate income tax (known as industrial tax in Angola) rate is 30%.
|Income Tax Rate ?||
|Payroll Tax ?||
|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:
|Employee Social Security (EE SS)||
Employees are required to contribute 3% of the employee’s gross monthly remuneration. For more details, please refer to the section on Employment.
|Employer Social Security (ER SS)||
Employers are required to contribute 8% of the employee’s gross monthly remuneration. For more details, please refer to the section on Employment.