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Payroll & Tax in Angola

Angola payroll & taxation

Shield GEO is not operating in Angola at this time. However, feel free to contact us and we’ll do our best to assist you with your employment needs or connect you with a trusted partner.

Your Payroll Options in Angola

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.

Fully Outsourced Payroll & Employment

Shield GEO does not operate in Angola.

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Setting up payroll in Angola

Information Explanation
Currency ?

Angolan kwanza, Kz, AOA

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.

Tax Figures

Information Explanation
Corporate Income Tax ?

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

Income Tax Rate ?
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%.

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.

 

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.

Angola

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