Angola

Registrations and Establishing an Entity

To operate legally in Angola, a company must establish a local presence either by registering a branch or incorporating a local subsidiary. A work visa is only issued to employees of entities that are registered in Angola. For foreign entities planning long-term operations (over 90 days in a 12-month period), a local legal structure is mandatory. The process includes approvals from the Central Company Name Registry and AIPEX, followed by tax, commercial, and social security registrations. All registration documents must be in Portuguese, notarised, and certified by the Angolan embassy.

Banking

It is mandatory to use an in-country Angolan bank account for making salary and authority payments. Standard banking hours are 08:00–12:30 and 14:00–15:00 on weekdays, with some branches also open Saturday mornings.

Working Week

The official working week is Monday to Friday, with a maximum of 44 hours. Offices generally operate from 08:00 to 17:00.

Employment Law

Holiday Accrual

Employees receive 50% of their base salary as a holiday bonus and another 50% for the month of December as a Christmas bonus. These terms may be improved by collective or individual contracts.

Maternity Leave

Mothers are entitled to 90 days of paid maternity leave, fully funded by the employer. Employers may request reimbursement from social security within 120 days. An additional 4-week unpaid leave can be requested.

Paternity Leave

Fathers are entitled to 7 consecutive or non-consecutive unpaid working days.

Sick Leave

Sick leave entitlements depend on the employer’s work insurance policy.

National Service

Angola mandates conscription of two years for males aged 20–45.

Tax & Social Security

The tax year follows the calendar year.

Income Tax

Income tax for individuals (Group A) is progressive, ranging from 0% to 25%.

• 0% up to AOA 100,000
• Gradually increasing to 25% for income above AOA 10,000,001

Self-employed professionals (Group B) are taxed at 6.5% or 25%, depending on whether withholding applies. Group C taxpayers are subject to a minimum profit table or 6.5% or 10% depending on turnover and activity.

Social Security

Mandatory for Angolan residents and nationals.

• Employee contribution: 3%
• Employer contribution: 8%

Total: 11%

Expatriates may be exempt if covered by a home-country scheme. Contributions are due by the 10th of the following month.

Payroll

Payslips must be in Portuguese and issued in hard copy format. Online payslips are not permitted.

Reports

Payroll records must be retained for at least 5 years. PIT must be submitted monthly, with annual returns (Mod2) due by the last working day of February.

Reporting

Payroll is reported via monthly withholding tax submissions and annual tax declarations filed online through the Ministry of Finance portal.

New Employees

Employers must register all new employees within 30 days of employment commencement. Required documents include ID/passport, work visa, SS card (if applicable), and taxpayer card. Expatriates need a registered local labour contract, subject to a 5% registration fee.

Leavers

Final pay is included in the last payslip, and deregistration from social security is mandatory.

Employee Benefits

Benefits such as company cars or mileage allowances are only considered part of income if contractually included. Otherwise, these are treated as employer costs.

Expenses

General expenses are only included in payroll if considered part of remuneration. Work-related reimbursements are processed separately.

A work visa is valid for 12 months and may be renewed in line with the employment contract. It is occupation- and employer-specific. Dependents must apply for temporary stay visas. Visas must be used within 60 days of issue.

Angola-Specific Updates (2025)

• Minimum Wage: AOA 70,000/month, increasing to AOA 100,000/month from 16 September 2025.
• Micro-Entities Minimum Wage: AOA 50,000/month.
• Special Contribution on FX Operations: 10% for corporations, 2.5% for individuals.
  
  

VAT Adjustments:

5% VAT on industrial equipment with approval.

Further Information

For more information, or assistance with Angola Tax enquiries please contact: gi@activpayroll.com

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.