Angola Income Tax RatesAngola income tax rates for individuals (resident and non-resident) are levied on a sliding scale at rates which vary from 0% to 15%.
Taxable income bracket (Angolan Kwanza) / Tax rate on income in bracket (%)
AOA 0 - 8,500 No tax
AOA 8,501 - 11,000 2% of the amount exceeding AOA 8,500
AOA 11,001 - 16,000 AOA 50 + 4% of the amount exceeding AOA 11,000
AOA 16,001 - 21,000 AOA 250 + 6% of the amount exceeding AOA 16,000
AOA 21,001 - 26,000 AOA 550 + 8% of the amount exceeding AOA 21,000
AOA 26,001 - 36,000 AOA 950 + 10% of the amount exceeding AOA 26,000
AOA 36,001 - 56,000 AOA 1,950 + 12.5% of the amount exceeding AOA 36,000
AOA 56,001 - 76,000 AOA 4,450 + 14% of the amount exceeding AOA 56,000
AOA 76,001 and above AOA 7,250 + 15% of the amount exceeding AOA 76,000
All individuals receiving employment income for duties performed in Angola are subject to income tax. Personal income tax will be payable by all Angolan residents and non-residents on all the income obtained from an activity in Angola.
Angola Income Tax for Independent Professionals: Tax rates levied on the remuneration derived by independent professionals are subject to a personal tax income tax rate at a flat rate of 15% on 70% of their total income.
Angola Income Tax for Non-residents: Non-residents are liable for tax on income earned in Angola. They are not liable for tax on income brought into Angola or received from a source outside Angola.
Angola Corporate Tax Rates- The standard rate of Angola corporate tax is 35% for resident corporations and Angolan PEs of nonresident companies.
- A reduced corporate tax rate of 20% applies for agriculture and forestry.
- Income from oil is taxed at 50% or 65.75%.
- Tax rate for mining activities is 40%.
All the income obtained by an Angola company operating overseas will be fully taxable. Taxpayers paying corporate tax are divided into 3 groups of which Group A is the most important:
Group A
Includes joint stock companies, public companies with capital greater than 35 UCFs, financial and insurance institutions, Angolan companies operating abroad, foreign entities having a permanent establishment in Angola and other taxpayers that have an average turnover in the last three years over 70 UCFs.
A UCF is a reference value used to establish a taxpayer's tax liability. The UCF is periodically adjusted by the Minister of Finance based on oil prices, exchange rate against the US Dollar and the consumer price index.
Group B
This group comprises the taxpayers that do not fall under Groups A or C, as well as those who carry out a one-off activity of a commercial or industrial nature.
Group C
Comprises any individual that fulfils the following conditions:
- is included in a trade list
- does not keep a set of accounts
- works for himself and does not have more than three employees or collaborators
- does not make use of more than two vehicles and
- whose annual gross turnover is not exceeding 13 UCFs.
The tax rate applicable to Groups A and C is 35%. The Group B tax rate is 25% (levied on gross turnover).
Petroleum Industry Tax RegimeOil companies in Angola are subject to a specific tax regime.
Petroleum Income Tax (PIT)Tax base: PIT is levied on the income obtained from the exercise of petroleum transactions and any other income derived from other activities of a non-commercial or industrial nature.
Tax rate :
. 65.75% - in relation to a joint venture agreement ("Associa¸ão em Participa¸ão")
. 50% - for a cost share agreement.
Petroleum Transaction Tax (PTT): PTT is due on all the income derived from petroleum transactions carried out under a joint venture agreement. The tax rate is 70%.
Surface: Surface fees are calculated based on production areas at a rate of $300 per square kilometre per year.
Production Royalty: This is due on non-PSA (Associa¸ão em Participa¸ão) total hydrocarbons production less hydrocarbons used in filed operations at a rate of 20% with possible reduction to 10%.
Mining Industry TaxationMining companies are subject to a specific taxation regime.
Mining Corporate Income TaxThe tax base is the same as corporate income tax with specific adjustments, such as depreciation. The tax rate is 40% and is payable in the same manner as corporate income tax.
Mining Surface Fee: This fee is due based on the surface area licensed during the prospecting and exploration periods. The tax rate varies between US$1/Km2 to US$4/Km2.
Mining royalty: This is charged ad valorem on the market value of the annual mineral ore output at various rates between 2% and 5%.
Dividends: Companies are generally subject to tax on the gross amount of dividends received. Dividends received from Angolan companies subject to industrial tax are exempt from tax if, at the time of the distribution, the recipient owns at least 25% of the capital of the paying company and has held the shares for at least two years or since the incorporation of this company. Whenever the dividends are distributed by a local company and the conditions mentioned above are not foreseen, the tax rate is 10%. Dividends received from a foreign company are considered to be normal business income and taxed at an effective rate of 35%.
Foreign tax relief: Foreign-sourced income is included in the taxable income. No relief is granted for foreign taxes paid by an Angola taxpayer subject to earned income tax. Tax credits are available for overseas taxes incurred in certain circumstances.
Angola Sales tax / Value added tax (VAT) RatesThe standard rate of VAT in Angola is 10%.
This tax is levied on the supply of goods and services as well as on the import of goods into Angola. The tax rate ranges from 2% to 30%, depending on the goods or service.
The standard rate of VAT is 10%. A reduced 2% applies to foods and medical supplies. Increased rates of 20% and 30% apply to certain luxury items.
| 
