Angola: Non-Taxable Amounts in Payroll

Recently, a client requested support from Praxima in order to understand which elements of remuneration are excluded from taxable income. The applicable provisions are set out in Article 2 of Law No. 28/20, which amended the Labour Income Tax Code in 2020.

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Non-Taxable Amounts

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Only the following items are classified as non-taxable:

• Social benefits paid by the National Institute of Social Security within compulsory social protection
• Family allowance paid by the employer, limited to 5% of the employee’s basic monthly salary (excluding public service workers)
• Social security contributions
• Salaries and remuneration up to AKz 100,000 for occasional national agricultural workers and Angolan domestic workers employed by private individuals or households and registered with Social Security
• Subsidies granted by law to national citizens with motor, sensory, or mental disabilities
• Daily, representation, and travel allowances for State employees within legislated limits
• Food allowances for dependent workers (not included above), capped at AKz 30,000 per month
• Reimbursement of documented business expenses in line with the Industrial Tax Code
• Transport allowances for dependent workers (not included above), capped at AKz 30,000 per month