Tax rates in Angola

Tax Rates

Consumption Taxes

Nature of the Tax: Value Added Tax (VAT)
Until the end of 2020, a transitional regime has been in force, during which:
•    only companies registered in the Large Taxpayers’ Tax Office are subject to the general VAT regime
•    companies not included in the list of large taxpayers but with a turnover or imports of goods higher than an amount of approx. USD 250,000 will be subject to a simplified taxation regime, and
•    the remaining companies will not be considered taxpayers for VAT purposes (non-taxation regime).
However, from 2021, the transitory VAT regime was eliminated and entities moved mandatorily to the general VAT regime. A simplified VAT regime may also apply.
Tax Rate: 14%
Reduced Tax Rate: Exempt supplies include: medication and other related products for therapeutic and prophylactic ends; wheelchair and similar vehicles destined for people with disabilities as well as braille machines and other gadgets used to correct learning disabilities; books; leasing and letting of immovable property for housing purposes (excluding the accommodation services provided by hotels and entities with similar activity); collective public transportation services; banking and financial operations carried out by banking financial institutions and non-banking financial institutions, including the financial leasing; insurance activities; supply of fuels according to Annex II of the VAT Code.
Exports are zero-rated.
A reduced rate of 5% applies to certain food products and agricultural inputs. For the items listed in Annex I of OGE 2022, the reduced rate stands at 7% (e.g. milk, beans, rice, water, meat, fish, eggs, soap, and other agricultural inputs).
Other Consumption Taxes: Several products are subject to excise duties, including sugar and alcoholic beverages; tobacco and its derivatives; fireworks; oil derivatives; jewellery and goldsmith articles; aircraft and pleasure craft; firearms; art objects, collages, and antiques; petroleum products; vehicles; plastic bags and straws; tires. Rates vary between 2%, 5%, 19%, 25% and 30%, depending on the product.

Corporate Taxes

Company Tax: Taxpayers paying corporate tax are divided into 2 groups. The standard rate is 25%
Tax Rate For Foreign Companies: Tax residents are taxed on worldwide profits. Non-resident firms are only taxed on their Angola-sourced income. Strategic investment projects from foreign companies may be eligible for tax incentives under the Private Investment Law (e.g. reduction of the corporate tax rate by 20% for two years). Exemptions from corporate income tax are provided for non-resident shipping and airline operators.
Capital Gains Taxation: Capital gains obtained by resident companies are included in taxable income and taxed at the standard flat rate of 25%. Capital gains derived from the sale of shares are not liable to corporate income tax, but are subject to investment income tax (generally at 10%, conditions apply).
Main Allowable Deductions and Tax Credits: Amortisation of tangible and intangible assets is tax-deductible at rates ranging from 4% to 33.33%. Depreciations that exceed the allowed rates are not immediately tax-deductible; however, they may be deducted in subsequent years. Depreciation rates are increased by 25% for companies operating on two shifts and 50% for companies operating on continuous production.
Goodwill cannot be amortised for tax purposes. Interest expenses are tax-deductible (interest on shareholder loans is deductible up to the limit that would result from the annual average interest rate established by the Angolan Central Bank). Bad debts are deductible if they result from the bankruptcy or insolvency of the debtor. The deductibility of donations to charitable organisations depends on their compliance with the Angolan law on patronage. Donations that are not covered by the Patronage Law are subject to autonomous taxation at a rate of 15%. Fines are not tax-deductible, unlike indirect taxes.
Expenses for which there is no valid supporting documentation whose occurrence and nature are not materially verifiable are subject to a standalone tax at rates varying between 30% and 50%.
Tax losses can be carried forward for up to five years. The carryback of losses is not permitted. Payments to foreign affiliates are deductible if they respect the arm's-length principle.
Other Corporate Taxes: Stamp duties ranging generally from 0.1% to 1% are levied on virtually all transactions, including real estate, insurance and corporate acts, except, among others, those relating to a loan agreement.
A property tax (IPU) is levied on income from real estate. The rate is 25% for rental income; however, it only applies to 60% of income, which results in an effective rate of 15%. For real estate that is not rented, the tax only applies at a rate of 0.5% if the value of the property exceeds 6 million AOA (plus AOA 5,000 for a value between AOA 5 and 6 million). Property transfer taxes (SISA) amount to 2% of the higher of (i) the selling price or (ii) the property value registered for tax purposes.
Social security contributions payable by the employer amount to 8% of the salary and cover the health insurance and the pension plan.
An investment income tax of 15% applies to standard interest gains (credit, loan; 10% for dividends and repatriation of profits; bond interest; interest from shareholder loans; capital gains; royalties; 5% for interest and capital gains on bonds, securities, or other financial instruments and dividends and capital gains on shares when traded in a regulated market).
Other Domestic Resources: Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

	Angola	Sub-Saharan Africa	United States	Germany
Number of Payments of Taxes per Year	31.0	36.6	10.6	9.0
Time Taken For Administrative Formalities (Hours)	287.0	284.8	175.0	218.0
Total Share of Taxes (% of Profit)	49.1	47.3	36.6	48.8

Source: Doing Business, Latest available data.

Individual Taxes

Tax Rate

Income tax (in AOA)	Progressive rates from 0% to 17%
Up to 70,000	0%
Between 70,001 and 100,000	3,000 + 10% upon the excess of 70,000
Between 100,001 and 150,000	6,000 + 13% upon the excess of 100,000
Between 150,001 and 200,000	12,500 + 16% upon the excess of 150,000
Between 200,001 and 300,000	31,250 + 18% upon the excess of 200,000
Between 300,001 and 500,000	49,250 + 19% upon the excess of 300,000
Between 500,001 and 1,000,000	87,250 + 20% upon the excess of 500,000
Between 1,000,001 and 1,500,000	187,250 + 21% upon the excess of 1,000,000
Between 1,500,001 and 2,000,000	292,250 + 22% upon the excess of 1,500,000
Between 2,000,001 and 2,500,000	402,250 + 23% upon the excess of 2,000,000
Between 2,500,001 and 5,000,000	517,250 + 24% upon the excess of 2,500,000
Between 5,000,001 and 10,000,000	1,117,250 + 24.5% upon the excess of 5,000,000
Above 10,000,001	2,342,250 + 25% upon the excess of 10,000,000
Self-employed workers	25% Fees paid to self-employed individuals are subject to a 6.5 % withholding tax when the payer has organized or simplified accounting models.
Individuals carrying out industrial or commercial activitiy	25% (applicable to profits established in the minimum profits table), 6.5% (applicable to the turnover if it exceeds four times the maximum value established in the minimum profits table)

Allowable Deductions and Tax Credits: Social security contributions are deductible. Self-employed individuals can be eligible for tax deduction for their business-related expenses, within certain limits; whereas business deductions are allowed for employees.
Special Expatriate Tax Regime: Residents are taxed on their global income, whereas non-residents are taxed at the same rates as residents only on their Angola-sourced income.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: The double taxation treaty between Angola and Portugal came into force in 2019.

The treaties signed with the United Arab Emirates, China and Cabo Verde did not come into force yet.
Withholding Taxes: 10% for dividends (5% for dividends on shares when traded in a regulated market); 15% for interest (10% for bond interest and interest from shareholder loans, 5% for interest on financial instruments issued by a company that trade in a regulated market); and 10% for royalties. Payment of services is usually subject to a withholding tax of 6.5%. Educational, medical and transport services are exempt.

Sources of Fiscal Information

Tax Authorities: Overview of Angola's tax measures in response to Covid-19
General Tax Administration
Other Domestic Resources: Ministry of Finance - Tax legislation
AIPEX - Angola's Private Investment and Export Promotion Agency

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