Angola Personal Income Tax Guide 2026

Angola operates a progressive Imposto sobre o Rendimento de Trabalho (IIT) system with rates from 0% to 25% across 5 monthly brackets. The first AOA 100,000 of monthly income is tax-free. The tax is administered by the Administração Geral Tributária (AGT). The tax year follows the calendar year (January to December). Annual returns must be filed by 31 May.

Overview — Administração Geral Tributária (AGT)

The Administração Geral Tributária (AGT) administers all domestic tax collection in Angola including personal income tax, corporate tax, VAT, and other levies. Tax residents are taxed on worldwide income; non-residents are taxed only on Angola-source income. Residency is determined by physical presence of 183 days or more in a calendar year, or having a permanent home in Angola. Employees have tax withheld at source under the IIT system. Self-employed individuals file quarterly estimated returns. The currency is the Angolan Kwanza (AOA).

IIT Tax Brackets 2026 — Monthly Rates

Angola uses a progressive monthly bracket system with 5 bands and a top marginal rate of 25%. For 2026, the monthly IIT brackets are:

0% — on the first AOA 100,000 per month (tax-free threshold)
13% — on monthly income from AOA 100,001 to 180,000
16% — on monthly income from AOA 180,001 to 300,000
20% — on monthly income from AOA 300,001 to 450,000
25% — on monthly income above AOA 450,000

Effective tax rates are modest due to the AOA 100,000 tax-free threshold. A taxpayer earning AOA 500,000/month pays approximately AOA 72,200 in IIT — an effective rate of ~14.4%. The annual tax-free amount is AOA 1,200,000 (AOA 100,000 × 12).

IIT Withholding

Employers must register for IIT with AGT and deduct tax monthly from employee salaries. The employer calculates monthly tax on gross salary, applies the tax-free threshold, deducts INSS employee contribution (5%), and remits the net tax to AGT by the 15th of the following month. Employers file monthly IIT returns via AGT's online portal. Employees receive annual tax deduction summaries for their records. Failure to remit IIT attracts penalties and interest on overdue amounts.

Self-Employed Individuals

Self-employed individuals and sole proprietors are taxed under the same progressive IIT rates as employees, but must file self-assessment returns. Estimated tax is payable in quarterly instalments. The annual return must be filed by 31 May of the following year. Self-employed individuals can deduct allowable business expenses (rent, utilities, raw materials, salaries) to arrive at taxable profit. Proper books of account must be maintained.

FAQs

Do I need to file a return if I pay IIT through my employer?

Yes, all resident individuals must file an annual income tax return with AGT by 31 May, even if all tax was withheld at source. The process is simplified for PAYE-only employees.

Is overtime pay taxable?

Yes, all remuneration including basic salary, overtime, bonuses, commissions, and allowances are taxable as employment income. Certain specified benefits may be exempt.

What happens if my employer does not remit IIT?

The employer is liable for the unpaid tax plus penalties. Employees should verify their tax compliance through AGT's portal and request a Tax Clearance Certificate.

Disclaimer

This guide provides general information about Angolan personal income tax for the 2026 tax year. Tax laws, rates, and regulations may change. Always consult with a qualified Angolan tax advisor or the Administração Geral Tributária for advice specific to your situation. InvestmentKit does not provide tax advice.