Business Environment

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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

Accounting Rules

Tax Year
The tax year runs from 1 January to 31 December.
Accounting Standards
All companies must prepare their financial statements in accordance with the Angolan Accounting Law and the Angolan General Accounting Plan (PGCA).
Accounting Regulation Bodies
Ministry of Finance
Accounting Reports
The company's financial statement must include a balance sheet, income statement, a cash flow statement, notes to the financial statement and an explanatory note on the cash flow statement (optional).
Publication Requirements
All companies must prepare their financial statements annually and submit them to the Commercial Register.
Professional Accountancy Bodies
Ordem dos Contabilistas e dos Peritos Contabilistas de Angola , The Angola Accountants and Chartered Accountants  Order
Certification and Auditing
Companies need to hire a certified auditor. To contact an external auditor you can visit the following sites: Ernst & Young, PriceWaterHouseCoopers, Deloitte, KPMG, UHY.
Accounting News

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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: basic basket products, including products such as milk, beans, rice, wheat flour and maize, food oil, sugar cane and soap; agricultural inputs, including goods such as horses, live animals (bovine, swine, ovine and caprine animals), poultry, seeds, wheat, rye, barley, oat, corn, fertilizers, farming tools, barbed wire, tractors.
Other Consumption Taxes
Several products are subject to excise duties, including: sugar and alcoholic beverages; tobacco and its derivatives; fireworks; 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.

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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%). 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 (except interest on shareholder loans). 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 up to five years. The carryback of losses is not permitted.
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 5 million AOA. 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).

A special contribution of 10% applies to payments due to non-residents related totechnical assistance and management contracts.

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.

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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.

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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.

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Intellectual Property

National Organisations
IAPI, Instituto Angolano da Propriedade Industrial, Angolan Institute of Industrial Property, Ministry of Industry

INIC, National institute for the cultural industries, National direction for entertainment and Author's rights, Ministry of Culture.

International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
 

National Regulation and International Agreements

 
Type of property and law Validity International Agreements Signed
Patent
 
Law No. 3/92 on Industrial Property of February 28, 1992
15 years (non-renewable) from the registration of the patent Patent Cooperation Treaty (PCT)
Trademark
 
Law No. 3/92 on Industrial Property of February 28, 1992
10 years (renewable) from the registration date of the trademark
Design
 
Law No. 3/92 on Industrial Property of February 28, 1992
5 years (renewable) from the registration date of the design  
Copyright
 
Law No. 4/90 of March 10, 1990 on Author's Rights
During the author's lifetime and 50 years after his death (25 years in the case of photographic works and applied arts)
Industrial Models
 
Law No. 3/92 on Industrial Property of February 28, 1992
5 years (renewable) from the registration date of the model  

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Legal Framework

Independence of Justice
No
Equal Treatment of Nationals and Foreigners
Foreigners are not discriminated against in any way but the Angolan legal system is not always impartial due to political influences.
The Language of Justice
Portuguese
Recourse to an Interpreter
The Angola Constitution guarantees the right to communicate in a language one understands, including via an interpreter.
Sources of the Law and Legal Similarities
The legal system is based on the Portuguese civil law and on customs law adapted to the local political pluralism.
Checking National Laws Online
Lexmundi
The Goverment of Angola

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Standards

National Standards Organisations
IANORQ, Angolan Institute of Standardization and Quality
Integration in the International Standards Network
Angola is a corresponding member of the ISO, and member of the Southern African Development Community Cooperation in Accreditation Service (SADCAS).
Classification of Standards
The Angolan system of standards is weak.
Certification Organisations
Det Norske Veritas (DNV)

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Business Practices

General Information
Commisceo Global Guide - Angola
Business Practices in Angola - Communicaid
Opening Hours and Days
Shops are generally open Monday to Friday from 8am-9am to 6pm-7pm; and on Saturdays 8 am-9 am to 12:30 pm.

The offices are generally open Monday through Thursday from 7:30am to 12:30pm and from 2:30pm to 6:30pm, and on Friday from 2:30pm to 5:30pm. Some offices are open on Saturdays from 8:30am to 12:30pm.

Banks are open from 8:45am to 4pm from Monday to Friday and are closed on Saturday and Sunday.
 

Public Holidays

New Year 1 January
Colonial Repression Martyrs' Day 4 January
Day of the Armed Struggle 4 February
International Women's Day 8 March
Day of Peace and Reconciliation 4 April
Good Friday 18 April (varies)
Easter Monday 21 April (varies)
Labour Day 1 May
Africa's Day 21 May
International Children's Day 1 June
National Heroes Day 17 September
Independence Day 11 November
Christmas 25 December
Boxing Day 26 December
 
Holiday Compensation
Yes
 

Periods When Companies Usually Close

Annual holiday 3 weeks between June and September
Christmas and New Year 1 week
Carnaval variable
 

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Latest Update: April 2022