Tax In Angola

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Angola is complying with the country’s tax system. As well as paying tax in Angola, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. 

How do I calculate my taxable income: 

If you’re working in Angola under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Angola for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Angola, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Angola through PAYE is left with the prospect of doing everything themselves.

Do you know much about Angolan Tax Law? Does Angola have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Angola can range from 5 to 17% percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Angola, we can supply it to you free of charge. 

Using an Umbrella Company for Income Tax : 

Contractors in Angola are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. An Angolan umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Angolan taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Angola tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Angola, many of whom are experts in tax and immigration laws. If you have any questions about tax in Angola, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Angolan work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Angola but without the overhead of directly dealing with the Angolan tax authorities. Get in touch with us today for some reliable advice on tax in Angola!

 

When Do You Need to Lodge Your Tax Return?: 
Self-employed individuals must file returns in March following the end of the fiscal year (31 December). Employees are not required to lodge any tax returns. It is the entity that pays the income that deals with the tax administration.
Tax Filing Deadline : 
End of March for self-employed individuals and end of February for employers.
Can you file it online? : 
Yes, https://www.agt.minfin.gov.ao/
Currency: 
Angola Kwanza (AOA)
Tax-free Threshold in: 
34,450 AOA
Grossed Income: 
Between 34,451 and 35,000
Tax Rate: 
The excess of 34,450
Grossed Income: 
Between 35,001 and 40,000
Tax Rate: 
550 + 7% upon the excess of 35,000
Grossed Income: 
Between 40,001 and 45,000
Tax Rate: 
900 + 8% upon the excess of 40,000
Grossed Income: 
Between 45,001 and 50,000
Tax Rate: 
1,300 + 9% upon the excess of 45,000
Grossed Income: 
Between 50,001 and 70,000
Tax Rate: 
1,750 + 10% upon the excess of 50,000
Grossed Income: 
Between 70,001 and 90,000
Tax Rate: 
3,750 + 11% upon the excess of 70,000
Grossed Income: 
Between 90,001 and 110,000
Tax Rate: 
5,950 + 12% upon the excess of 90,000
Grossed Income: 
Between 110,001 and 140,000
Tax Rate: 
8,350 + 13% upon the excess of 110,000
Grossed Income: 
Between 140,001 and 170,000
Tax Rate: 
12,250 + 14% upon the excess of 140,000
Grossed Income: 
Between 170,001 and 200,000
Tax Rate: 
16,450 + 15% upon the excess of 170,000
Grossed Income: 
Between 200,001 and 230,000
Tax Rate: 
20,950 + 16% upon the excess of 200,000
Grossed Income: 
More than 230,001
Tax Rate: 
25,750 + 17% upon the excess of 230,000
How long does it take to set up: 
36 days
How much does it cost: 
15,820 AOA + fee to obtain a commercial operations permit.
Is it easy? : 
Starting a Business rank: 134. Low rank means that setting up a limited company is difficult.
How to File Taxes in: 

Step 1: Income taxes on employees are withheld under a Pay-as-you-earn system for each month.

Step 2: Employers pay this tax to the tax office through a tax assessment document and receive a revenue collection document which serves as a proof of payment.

Step 3: By the end of February each year, employers submit the proof of payment documents and file an Employment Income Tax annual return (‘Modelo 2’) which discloses:

  1. Number of employees:
  2. Amount of wages and other income paid to each employee during the prior year.
  3. Amount of Employment Income Tax withheld for the employee
Notes: 

There are 3 groups of taxation

  1. Group A: Income earned by dependent employees.
  2. Group B:  Income earned by self-employed workers, company directors, as well as board members.
  3. Group C:  Income earned by individuals carrying out an industrial or commercial activity listed in the minimum profits table.
  • Group A are taxed at progressive rates up to 17% according to the above table.
  • Group B are taxed at a flat rate of 15%. This 15% tax rate is applicable to 70% of the gross income.
  • Group C are taxed at:
    • A flat rate of 30% on the profits established in the minimum profits table and
    • A flat rate of 6.5% on the amount of sales of goods and services when turnover is in excess of 4x the maximum value established in the minimum profits table
Does the 183 day rule apply in: 

Yes

When do you become a tax resident in: 
  • Maintains a residence (i.e. habitual residence) in Angola on 31 December of each fiscal year.
  • Spends more than 183 days, consecutive or not, in Angola in each fiscal year.

Despite an individual being deemed a tax resident in Angola, only the income sourced in Angola is subject to taxation.

Am I taxed on my global income in: 

No. Only income paid by an Angolan entity or by an entity with a head office, residence, or permanent establishment in Angola is subject to taxation. 

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