GROW YOUR BUSINESS IN ANGOLA

Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost

  • Full Payroll Outsourcing
     

  • Hybrid Payroll Outsource
     

  • International Payment Management
     

  • Local Filing
     

  • Social Security Filing
     

  • Interact with Local Authorities
     

  • Human Resources Management System
     

  • Integration with all Accounting and Third Party

    Software

Praxima Services Include

Benefits of outsourcing to Praxima

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Local Tax Compliance

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Secure Data Transferring

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Responsive Administrators

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Increase Productivity

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Industry Experts

Running Your Payroll

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Focus on Your

Core Business

Outsource your Angolan payroll to Praxima

Angola Payrolls

In Angola, companies are required to ensure that their payroll complies with the county's tax rules such as payin the Individual Income Taxes, Social Security, Consumption Taxes, Withholding Taxes and more.  Income taxes are levied on a sliding scale from 5% - 17% on all income earned locally.  Foreign earnings are exempted from tax, unless the company has a registered entity in Angola.  All payments to employees must be made from an In-Country bank account. 

TAX RATES  |  2022

 

AOA:                                  Tax Rates:                       

0 - 70,000                         Exempt               

70,001 - 100,000             3,000 + 10% upon the excess of 70,000           

100,001 - 150,000           6,000 + 13% upon the excess of 100,000  

150,001 - 200,000           12,500 + 16% upon the excess of 150,000   

200,001 - 300,000           31,250 + 18% upon the excess of 200,000   

300,001 - 500,000           49,250 + 19% upon the excess of 300,000      

500,001 - 1,000,000        87,250 + 20% upon the excess of 500,000    

1,000,001 - 1,500,000     187,250 + 21% upon the excess of 1,000,000    

1,500,001 - 2,000,000     292,250 + 22% upon the excess of 1,500,000

2,000,001 - 2,500,000     402,250 + 23% upon the excess of 2,000,000

2,500,001 - 5,000,000     517,250 + 24% upon the excess of 2,500,000

5,000,001 - 10,000,000   1,117,250 + 24.5% upon the excess of 5,000,000

Above 10,000,001            2,342,250 + 25% upon the excess of 10,000,000     

STATUTORY FILING  |  2022   

    

The employer is responsible for withholding the taxes on their employee's monthly remuneration. 

Taxes are payable simultaneously with the return filing, which deadline is by the end of the following month.  Submissions are done in person at the Revenue office. 

SOCIAL SECURITY  |  2022

Both the employer and employee contributes on a monthly basis to the National Social Security Institute (INSS).  The employee contributes 3% of their Gross Salary monthly while the employer is required to contribute 8% of the employees' gross salary.  The employer must withhold the contribution due from the employee monthly and submit a total of 11% to the Angolan Social Security Authority on the 10th day of the following month. 

 

Expatriates that are included into a local payroll must register their local labour contract with the MAPTSS (Ministério da Administraҫão Pública, Trabalho e Seguranҫa Social)  Expatriates are furthermore exempted from Social Security, assuming that they have a similar cover in their home country.  

Tax Residents

Residency in Angola is irrelevant for tax purposes, as the only ccriteria considered is the source of the income.  Only the income earned in Angola is subject to personal income tax.  However, should an employee from a foreing entity renders services in Angola for a period longer than 90 days, permanent establishment will be triggered and the foreign entity will become subject to all Angolan taxation.  

Taxable Income

Income taxes are levied on a sliding scale from 10% to 25%.  The only income subject to taxation in Angola is the income sourced in Angola.  
 
Foreign earnings are exempted from tax, unless the company has a registered entity in Angola.    Self-employed workers are taxed at 15% flat.  Personal Income Taxes are to be paid at the end of the following month in which the remuneration was paid.  
 
A taxable income is calculated by deducting the Social Security contributions and the remuneration components exempted from PIT from the gross earnings. 

Exempt Income

The following payments are excluded from tax:
 

  1. Social benefits paid by Social Security for mandatory social protection.  

  2. Family allowance paid by the employer up to a limit of 5% fo the employee's monthly salary.

  3. Contributions to the Social Security.

  4. Housing allowance up to 50% of the rent, provided that the employee files a copy of the rental agreement within 15 days of signature at the Tax Oiffice.  

  5. The maximum severance payments as per the local labour legislation made to the employees at termination of the employment contract.  

  6. Meal and transport allowances at a maximum of AKZ 30,000 paid to the employees.

  7. Reimbursement of any business expenses incurred by the employee of all entities subject to industrial tax.  

  8. Holiday and Christmas allowances.

Your HRMS is Standard 

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Employee Self-service

Payslip and tax certificate retrieval. Updating of personal particulars. Leave request and balance enquiries

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Records

Employee documents folder. Training records. Heath & Safety records. Disiplinary records. Qualifications, resume and hiring records.

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Work Flow

Workflow with different approval levels. Full work flow functionality for leave requests, expense and time-sheets

PAYMENTS, REPORTING & FILING

  • Direct payment into employee bank accounts. Emailed password protected pay slips.

  • Payment of taxes, benefit providers and other creditors.

  • Filing of returns to the authorities.

  • Generation and filing of statutory reports.

  • General ledger and 100's of customisable reports.

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