Bank loans and income taxes

Getting a bank loan and tax declarations

Bank loans and income taxes

Although the banking system is growing rapidly in Angola, there is actually no stock market and as you can imagine, access to financial services is therefore limited.

Loans

Getting a bank loan in Angola will prove rather difficult and should not be heavily relied upon as a source of money. This is not because the banks in Angola are strict with regards to loaning money, but because usually, access to credit is restricted by availability and not because of the cost of credit.

Interest rates depend on each bank and type of loan that you are applying for but usually vary between 18% - 24% for loans paid in Kwanzas and 12% - 14% for loans paid in US dollars.

You should check with your selected bank which documents you will need to bring with you. As with most bank loans, expect to provide proof of a strong credit rating, reason for requesting a loan and documents proving that you are a resident in Angola.

Income tax in Angola

You will be required to pay income tax on any salary earned in Angola, regardless of your residency status. It is paid directly and your employer will deduct the amount from your monthly pay packet. There are currently no tax treaties in place between Angola and other countries. The Angolan tax guide for 2012  will help you with detailed tax information.

The tax rate varies between 5-17% depending on the income group that you belong to. If you are earning above Kz230,001, which is the highest income group, you will be subject to a 17% tax. Earnings upto Kz25,000 are exempt from income tax.

Independent workers are charged a flat rate of 15% on 70% of their total income. Be aware that a tax declaration must be completed annually so do consult your employer about this.

Further reading

Does this article help?

Do you have any comments, updates or questions on this topic? Ask them here: