The PIT Code foresees, with the respective specificities, the segmentation of income into Groups, namely:
- Group A: Generally applicable to the income earned by employees.
- Group B: Income earned by self-employed workers.
- Group C: Income earned by individuals carrying out an industrial or commercial activity listed in the minimum profits table in force, attached to the PIT Code.
Personal income tax rates
Group B and Group C taxpayers are subject to PIT in line with the regime provided for business and professional income.
The PIT Code provides two regimes of taxation of income derived by Group B taxpayers, and the withholding tax rules depend on the payer's status:
(1) when the income is paid by companies, or individuals who have a simplified accounting or a general accounting model/organized accounting, the taxable amount corresponds to the value of the service and is subject to withholding tax at a rate of 6.5% (15% if payable to non-resident entities);
(2) when the income is paid by entities that do not meet the requirements mentioned in (1) above, the taxable income is determined by the service provided based on his accounting records or based on the available records of purchases, sales and services rendered, or based on the data available by the tax authorities according to the specific rules applicable to taxpayers of Group B and subject to a 25% tax rate. Taxpayers maintaining an accounting books and records, simplified accounting model or purchase and sale or services provided registration book are allowed to deduct up to 30% of incurred expenses in the computation of taxable income. Taxpayers of Group B with no organized nor simplified accounting models are not entitled to deduct costs and the tax is levied over all income.
For Group C taxpayers with organized accounting, the taxable income (not subject to withholding tax) should be determined, with the necessary adjustments, in similar terms as the ones applicable to taxpayers subject to the general CIT regime. Group C taxpayers without organized accounting may determine the taxable income (not subject to withholding tax) according to deemed profits (table of minimum profits) or, when exceeding certain limits, the turnover (sales of goods and services rendered).
|Taxable income||Rate (%)|
Amount of profits not subject to withholding tax assessed through the accounting records of individuals with organized accounting (Groups B and C).
Amount of profits established in the minimum profits table (Group C) or amount of sales of goods and services not subject to withholding tax, when the taxpayer has turnover in excess of four times the maximum value established in the minimum profits table.
Fees paid to self-employed individuals are subject to a 6.5 % withholding tax when the payer has organized or simplified accounting models.
|Business and professional income derived by non-resident professionals are generally subject to a final withholding tax of 15% on the gross amount.||15|
For Group A, there are progressive income tax rates up to 25%, as follows:
|Income (AOA)||Payable tax (AOA)|
|Up to 70,000||Exempt|
|Between 70,001 and 100,000||3,000 + 10% upon the excess of 70,000|
|Between 100,001 and 150,000||6,000 + 13% upon the excess of 100,000|
|Between 150,001 and 200,000||12,500 + 16% upon the excess of 150,000|
|Between 200,001 and 300,000||31,250 + 18% upon the excess of 200,000|
|Between 300,001 and 500,000||49,250 + 19% upon the excess of 300,000|
|Between 500,001 and 1,000,000||87,250 + 20% upon the excess of 500,000|
|Between 1,000,001 and 1,500,000||187,250 + 21% upon the excess of 1,000,000|
|Between 1,500,001 and 2,000,000||292,250 + 22% upon the excess of 1,500,000|
|Between 2,000,001 and 2,500,000||402,250 + 23% upon the excess of 2,000,000|
|Between 2,500,001 and 5,000,000||517,250 + 24% upon the excess of 2,500,000|
|Between 5,000,001 and 10,000,000||1,117,250 + 24.5% upon the excess of 5,000,000|
|More than 10,000,001||2,342,250 + 25% upon the excess of 10,000,000|
Investment Income Tax (IIT)
Individuals are also liable to IIT on interest, dividends, royalties, and other income of a similar nature. See the Taxes on corporate income section in the Corporate tax summary for more information.