Angola’s income tax system is designed to be deducted monthly from salaries by your employer. A yearly tax declaration is mandatory as well, so it may suit expats to consult a tax advisor that specialises in the local system.
All income earned in Angola will be taxed and anything earnt abroad will not be subject to income tax. The exception is if a company operating overseas is registered in Angola, income tax (industrial tax) is applicable.
Income tax is calculated on a scale from 5% to 17% of monthly earnings. The typical expat salary will almost certainly fall into the highest band (above Kz230,001). For information on taxes in Angola , including income tax, follow the link.
Expats are advised to ask their prospective employer about tax equalisation clauses or ‘hypo-tax’ agreements to be included as part of their work contract. These conditions work to balance the rate of tax paid in Angola with the rate employees would pay in their home country.
The taxes on some necessities (vehicles, housing etc), combined with the extremely high cost of living make managing your income in Angola a priority.