How can an Umbrella Company Help with Contracting in Angola?
Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.
They’re called Umbrella Companies (or, contractor management companies).
Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.
Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Angola. Even better, most are experts in Angola and expat tax law, meaning they’ll also help you optimise your earnings in Angola.
Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.
Can I Organise My Taxes and Work Permit Myself?
Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Angola.
If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.
Also, are you familiar with the intricacies of the tax system in Angola, as well as your own country’s laws on overseas earnings? If so, good on you!
However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Angola and your home country can seem like full-time work in itself.
A Contractor’s Guide to Taxes in Angola
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 in Angola
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 Filing as a Contractor 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/ |
How to File Taxes in Angola as a Contractor
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:
- Number of employees:
- Amount of wages and other income paid to each employee during the prior year.
- Amount of Employment Income Tax withheld for the employee
Tax Figures in Angola
| Currency | Angola Kwanza (AOA) | ||||||||||||||||||||||||||
| Tax-free Threshold in Angola | 34,450 AOA | ||||||||||||||||||||||||||
| Income Tax Rates |
|
||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Notes | There are 3 groups of taxation
|
Tax Residency in Angola
When do you become a tax resident in Angola
You become a tax resident in Angola when:
- 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.
Does the 183 day rule apply in Angola
Yes
Am I taxed on my global income in Angola
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.
Can you set up your own Limited Company in Angola?
| 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. |
Tax Calculator in Angola
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 in Angola
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 in Angola
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!
A Contractor’s Guide to Work Permits in Angola
Immigration is one of the primary concerns for any contractor hoping to start working in Angola. Permanent employees will find it easy to get their Angolan work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.
The Angolan work permit, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Angola is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
How Does an Umbrella Company Work?
Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.
When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.
While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Angola (which means avoiding fees, fines, or even worse penalties).
How Can We Help You?
There’s a huge variety of Umbrella Companies with different specialities and advantages in Angola. How do you find the right one for your circumstances?
We work closely with Umbrella Companies all throughout Angola and match contractors with the right company for them. If you’ve already secured a contract in Angola, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free).
