Angola is a resource-rich country with a young labor force and an economy dominated by oil, gas, and minerals.  The government has pursued recent reforms (including a new labour law in 2024 and a proposed reformed personal income tax that takes effect in January 2026) to modernize employment and tax rules. Angola has a progressive payroll and income tax system for individuals, with mandatory social security contributions for employees and employers. These taxes are governed primarily by:

  • The Personal Income Tax Code (Imposto sobre o Rendimento do Trabalho, or IRT)
  • Regulations enforced by the General Tax Administration (Administração Geral Tributária), or AGT, and the National Social Security Institute (INSS)

Payroll tax in Angola covers pensions, health, unemployment, and other social benefits, and is withheld from pay and remitted to the government social funds. Employers in Angola must understand this system before hiring to stay compliant and avoid hefty penalties.  In this complete guide, we will explain all you need to know about payroll and income tax in Angola.

What Is Payroll Tax in Angola?

In Angola, “payroll tax” is not a separate tax line item but refers to mandatory contributions tied to employment.  The main payroll deductions are Social Security contributions under the INSS and related funds.  Employers and employees both pay into these funds.  By law, the employer contributes 8% of an employee’s salary, and the employee contributes 3%.  These contributions fund family allowances, pensions, unemployment benefits, and health insurance for workers and their dependents.  

In practice, the employer withholds the 3% employee portion directly from wages and remits the full 11% to the authorities. Employees in Angola do not pay a separate payroll tax beyond these contributions. 

Example Breakdown

Here’s a breakdown of the social security contributions (INSS) based on a monthly salary of one hundred thousand Angolan Kwanza (AOA 100,000). These are typical deductions made by both the employer and the employee:

Contribution Type
Rate
Amount (AOA)
Employer INSS Contribution
8%
8,000
Employee INSS Withholding
3%
3,000

You can quickly estimate payroll costs with our Free Global Payroll Calculator.

Employer and Employee Responsibilities

Both parties have clear responsibilities: 

  • Employers must register workers with the Social Security and tax authorities
  • Employers must withhold the employee share from each payroll, add the employer share, and remit the combined payment every month
  • Employees only need to authorize the withholding through normal payroll (they do not file individual returns on these wages) 
  • At year’s end, employers also submit a summary return to the tax office listing all wages paid and INSS/Personal Income Tax (PIT) withheld for each employee

All payroll taxes are calculated on the “pre-tax” salary, including cash wages and most benefits in kind (subject to minor exceptions like approved employer benefits).

For more details on hiring and payroll logistics, see our Recruitment Agency. 

Retired employees who return to work pay an 8% employee rate instead of 3%.  Apart from that special case, the above rates are flat across sectors.  There are no higher payroll tax rates because of industry (outside special provisions in labor law).  All private-sector firms follow the same 8%/3% split. Public-sector or petroleum-sector employees may contribute to separate government-administered funds, but full-time Angolan employees under local contracts use the INSS system.

Employers unsure about compliance often use an Angola Employer of Record service to manage payroll, tax filings, and contributions on their behalf.

Angola Personal Income Tax (PIT)

Angola’s PIT system is structured around income categories—Groups A, B, and C, each with specific rules, rates, and withholding obligations. Angola only taxes personal income generated within the country, regardless of whether the individual is a resident or non-resident. 

Group A

Group A applies to individuals earning income from employment. If you’re hiring full-time or part-time employees in Angola, their salaries fall under this category.

Tax rates for Group use a progressive tax system, with rates from 0% to 25%, based on monthly income:

Salary Range (AOA)
Tax Calculation
Up to 100,000
Exempt (0%)
100,001 – 150,000
13% on amount above 100,000
150,001 – 200,000
12,500 + 16% on amount above 150,000
200,001 – 300,000
31,250 + 18% on amount above 200,000
300,001 – 500,000
49,250 + 19% on amount above 300,000
500,001 – 1,000,000
87,250 + 20% on amount above 500,000
1,000,001 – 1,500,000
187,249 + 21% on amount above 1,000,000
1,500,001 – 2,000,000
292,249 + 22% on amount above 1,500,000
2,000,001 – 2,500,000
402,249 + 23% on amount above 2,000,000
2,500,001 – 5,000,000
517,249 + 24% on amount above 2,500,000
5,000,001 – 10,000,000
1,117,249 + 24.5% on amount above 5,000,000
Over 10,000,000
2,342,248 + 25% on amount above 10,000,000
*This table is based on the 2024 PIT code.

Group B

Group B covers freelancers, independent contractors, and other self-employed workers.

Two Tax Regimes Based on Payer Status:

  • 6.5% Withholding Tax (WHT): If the payer is a company or individual with organised or simplified accounting, the income is taxed at 6.5% on the gross amount, withheld at the source.
  • 25% Tax Rate: If the payer has no organised accounting, the taxpayer is responsible for declaring and paying tax based on available records.
    • No cost deductions are allowed without formal accounting
    • Up to 30% of expenses can be deducted if the taxpayer maintains proper books or a simplified accounting model.

Group C

Group C applies to individuals engaged in commercial or industrial activities listed in the table of minimum profits, such as shop owners or market vendors. The Table of Minimum Profits is an annex to the PIT Code. It includes retail, small-scale manufacturing, and services, along with corresponding minimum profit thresholds. These thresholds are used to calculate tax liabilities for Group C taxpayers. 

Tax Regimes for Group C

  • Organised Accounting: Taxable income is determined at 25%
  • No Organised Accounting: Tax is based on either:
    • Deemed profits from the Minimum Profits Table, or
    • Turnover, if it exceeds 4x the maximum amount set in the Table.
    • If annual turnover is equal to or below AOA 10 million, a 6.5% rate applies.

For Non-Resident Professionals

Business or professional income earned by non-residents is also taxed at a final WHT rate of 6.5%.

Summary of Withholding Tax Rates

Group
Taxpayer Status / Payer Type
Tax Rate
Group A
Employment income
0% – 25% (Progressive per PIT table)
Group B
Paid by company/individual with accounting
6.5% (Flat rate)
 
No accounting, tax on declared income
25% (Flat rate)
Group C
Turnover ≤ AOA 10 million (not subject to WHT)
6.5%
 
Organized accounting (not subject to WHT)
25%
 
Non-resident providing professional services
6.5%

Angolan employees see a high tax-exempt band and a moderate top rate (25%), making the payroll tax burden on salary relatively low to mid-range. Also, expatriates working in Angola under local contracts are taxed the same as residents.  

Employers must prepare an annual PIT reconciliation (Modelo 2 return) by late February, reporting total wages and PIT withheld for all staff.

Explore our full guide on average salaries and employee benefits to better understand compensation expectations.

Industry-Specific Tax Rates

Beyond income and payroll, Angolan tax law also addresses other income types in the form of corporate taxes.  Capital gains (such as profits from selling securities or real estate) are generally taxed under the Investment Income Tax.  For individuals, selling shares or property triggers a 10% tax on the gain, plus any applicable stamp duties.

Business and investment income earned through a company is taxed under the Corporate Income Tax (CIT) system.  Angola’s standard CIT rate is 25% on profits.  Thus, a local company or permanent establishment pays 25% on its net income.  This CIT rate also applies to businesses owned by foreigners operating in Angola. Special sectors like oil and mining have their own royalty and tax regimes on production, but their corporate profit tax remains 25%.

Angola also imposes stamp and transfer taxes on certain transactions (for example, a 5% real estate transfer tax on property sales).  These are not payroll taxes but are worth noting for completeness. Depending on the familial relationship, inheritance and gift taxes range from 0.5 to 2%. 

Incoming Reformed PIT Code

On 1 April 2025, Angola’s draft Personal Income Tax Code (IRPS) was released. The IRPS will replace multiple existing tax laws with a single framework covering all individual income.

Effective 1 January 2026, the reform will:

  • Subject residents and non-residents to IRPS, with residents taxed on worldwide income and non-residents on Angolan-source income.
  • Assess tax residency by presence in Angola for more than 90 days (consecutive or not) in any 12 months.
  • Classify taxable income into five categories instead of three: 
    • Employment income (Category A), now including benefits-in-kind
    • Business and professional income (Category B)
    • Investment income (Category C)
    • Real estate income (Category D)
    • Wealth increases, including capital gains (Category E)
  • Treat withholding at source as payment on account, with final tax calculated annually at marginal rates up to 25% (investment income taxed at 10% or 15%).
  • Allow residents to claim credits for foreign tax paid in jurisdictions with double-taxation treaties (Portugal, China, UAE).
  • Require most individuals (except those with single-employer salary only) to file an annual income tax return.

Simplify Payroll and Income Tax with RemotePeople

Angola’s tax reform reshapes personal income tax, impacts residency rules, payroll structures, and global mobility. Employers must therefore reassess contracts and benefits. Our Employer of Record service simplifies compliance by helping global teams align with evolving local laws.