Social security contributions
Individuals are liable to social security contributions on their gross income at rates of 3% and 8% due by the employee and the employer, respectively.
Taxable income includes the salary base and the following compensation items when paid in cash and in accordance with the most recent interpretation of the National Institute for Social Security (INSS):
- Night and shift allowance.
- Indemnities for employment termination agreement.
- Participation in company profits.
- Exemption of time schedule allowance.
Other allowances are also subject to contribution if they increase the employee's wealth and are not aimed to compensate a specific expense.
Somewhat differently from earlier interpretation, the INSS has the position that the following allowances are not liable to social security contributions:
- Holiday allowance.
- Christmas allowance.
- Housing allowance.
- Transport allowance.
- Food allowance.
- Any benefit in kind.
The contributions are intended to cover family, pension, and unemployment protection.
Foreign citizens working in Angola (without a residence permit) may be excluded from social security in Angola, provided that they prove that they are covered by their home country's social security system.
There is currently no value-added tax (VAT) or sales tax in Angola. However, a consumption tax exists, which is similar to that of an excise duty. Note that a VAT regime and excise duty will enter into effect on 1 July 2019. See Other taxes in the Corporate tax summary for more information.
Real estate income tax (IPU) is levied on rental income earned by individuals or companies owning real estate assets. It is based on actual rental income when the assets are leased and on the assets’ registered value when the assets are not leased. See Other taxes in the Corporate tax summary for more information.