Global

Details

  • Service: Tax, Global Mobility Services
  • Type: Business and industry issue, Regulatory update
  • Date: 1/1/2014

Angola 

Individuals are subject to taxation on personal income tax on their Angolan source income obtained, irrespective of their place of residence. Income tax is levied at progressive rates over the individual’s annual taxable income.


Key message

Extended business travellers are likely to be taxed on Angolan source income.


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Income tax

Liability for income tax

  • According to the Angolan tax law, a person’s liability to tax in Angola is determined by the source of his/her income, irrespective of his/her place of residence.
  • Employment income tax is due on any income resulting from personal services rendered in Angola, by employed or self-employed individuals, who are directly or indirectly paid by an Angolan based entity, irrespective of the residence status of the individual.
  • Employment income is subject to monthly withholding tax to be made by the employer and paid to the tax authorities on a monthly basis.

Tax trigger points

  • There is no minimum number of days rule that exempts the employee from the requirements to pay tax in Angola.

Types of taxable income

  • For extended business travellers, the types of income that are generally subject to tax are employment income, business and professional income, investment income and capital gains (although some exemptions may apply on interest and capital gains).

Tax rates

  • Employees are subject to personal income tax at the progressive rates up to a maximum rate of 17 percent.
  • Independent professionals are subject to tax at a flat rate of 15 percent on 70 percent of total income received or at a flat rate of 20 percent if they have organized accounting records.

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Liability for social security

  • According to Angolan Social Security legislation, all employees are required to register with the National Social Security Institute and contribute on a monthly basis to it, unless they can prove that they contribute to the social security scheme of their home country.
  • Subject to this condition, the employee and the employer must contribute 3 percent and 8 percent, of the employee’s gross salary, respectively.

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Compliance obligations

Employee compliance obligations

  • Employment income tax is withheld by the employer on salaries paid to employees. As the withholdings correspond to the final taxes due in Angola, the employee has no reporting obligation herein.

Employer reporting and withholding requirements

  • The employer is required to withhold tax on the salaries and wages of their employees on a monthly basis.
  • The employer is also required to report the income paid and tax withheld to the employee to the tax authorities.

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Other issues

Double taxation treaties

  • Angola has not concluded, up to now, any double tax agreement.

Permanent establishment implications

  • There is potential that a permanent establishment could be created as a result of extended business travel, but this would be dependent on the type of services performed and the level of authority the employee has.

Indirect taxes

  • There is no “value added tax” in Angola. However, a consumption tax applies on supplies and imports of goods and services within the Angolan tax territory.

Transfer pricing

  • Angola has a transfer pricing regime.

Work permit/visa requirements

  • A visa must be applied for before the individual enters Angola. The type of visa required will depend on the purpose of the individual’s entry into Angola.

Local data privacy requirements

  • Angola has data privacy laws.

Exchange control

  • All foreign exchange transactions are subject to comply with the exchange control regulations imposed by the national bank. Under such regulations there are limitations on the amount of money that can be transferred out of Angola.

Non deductible costs for assignees

  • Not applicable.

Other

  • Not applicable.
 

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Contact

Jorge Taínha

Tax Partner

KPMG in Portugal

+599 9732 5405

Thinking Beyond Borders