Corporate - Deductions

Last reviewed - 25 June 2024


Depreciation should be computed using the straight-line method; any other method must be approved by the tax authorities.

The tax depreciation rates should respect the limits imposed by Presidential Decree No. 207/15, of 5 November 2015, and Decree No. 755/72, of 26 October 1972, altered by Decree No. 57/74, of 24 January 1974.

The table below summarises some examples of the depreciation tax rates.

Type of asset Rate (%)
Office buildings 4
Industrial buildings 4
Computers 33.33
Furniture Between 12.5 and 25
Software 20
Light passenger vehicles 25

An intensive operating regime is foreseen allowing accelerated depreciation. The depreciation rate can be increased by 25% in the case of production on two shifts and by 50% in the case of continuous production.


Amortisation of goodwill is not deductible for CIT purposes.

Interest expenses

Interest costs are generally deductible for CIT purposes. Interest arising from shareholder loans may be deductible for tax purposes up to the limit that would result from the annual average interest rate established by the Angolan Central Bank.

Bad debt

Write-off of bad debts may only be deducted for CIT purposes to the extent they result from the execution, bankruptcy, or insolvency of the debtor and they are duly supported with public certificates.


The following provisions are accepted as tax deductible:

  • Those related to contingencies and liabilities resulting from lawsuits for facts that would determine their inclusion as costs deductible for tax purposes.
  • Those related to bad debts, when the risk of non-recovery is considered to be justified, and subject to certain tax limits.
  • Those related to inventory depreciation within certain tax limits.
  • Those respecting the limits and rules imposed by the Insurance Supervision Institute for insurance companies, as well as the Central Bank for Financial Institutions.

In relation to doubtful debts, the regime:

  • Limits the provision’s deductibility to credits in which the risk of collection is considered duly justified. According to the tax law, the recovery risk is justified whenever:
    • The debtor is in insolvency, recovery proceedings, and enforcement procedure.
    • The credit was claimed in court.
    • The credit is overdue for more than six months and there is proof of collection diligences.
  • Excludes from tax deductibility the provisions of credits covered by insurance, over shareholders and subsidiaries (at least 10% share), and over the state and public companies.

In relation to the losses incurred with inventories, the regime:

  • Foresees different tax limits, depending on the sector of activity.
  • Imposes that the provision is calculated by the difference between the stock’s market price and its acquisition cost.
  • Foresees a special regime for taxpayers engaged in editorial activities.

Charitable contributions

Donations are only deductible for CIT purposes if fully compliant with the Patronage Law. The requirements imposed by this law are very restrictive.

The donations granted outside the scope of Patronage Law are also subject to autonomous taxation at a rate of 15%.

Fines and penalties

Fines and penalties are not deductible costs for tax purposes.


Certain taxes are non-deductible for CIT purposes, namely the CIT itself, PIT, IIT, property tax, or taxes paid on behalf of third parties (e.g. PIT borne on behalf of the employees).

Autonomous taxation

Confidential expenses are subject to autonomous taxation at rates of 30% and 50%. The donations granted outside the scope of Patronage Law are also subject to autonomous taxation at a rate of 15%.

The amount of autonomous taxation should be added to the taxable income in the case of donations and added to the tax due in the case of confidential expenses.

Net operating losses

Tax losses can be carried forward for five years.

Carryback of losses is not allowed.

Payments to foreign affiliates

Payments to foreign affiliates are accepted for tax purposes, although the arm’s-length principle should be complied with.