Angola: New Personal Income Tax Code (IRPS) – 1 January 2027

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On 25 June 2026, Angola ‘s National Assembly approved, in its final global vote, the new Personal Income Tax Code (Código do Imposto sobre o Rendimento das Pessoas Singulares – IRPS).

The Code replaces the current scheduler model, under which each type of income is taxed under a separate law, with a single progressive tax on the income of individuals. It replaces the Employment Income Tax (IRT) and brings capital income, rental income and certain Stamp Duty items into the same tax.

Income will be taxed under five categories: employment (A), business and professional (B), capital (C), property (D) and increases in net worth (E). The Code is scheduled to enter into force on 1 January 2027, with full aggregation of income from 1 January 2028.

Legislative Status

Approval by the National Assembly completes the parliamentary process. The law must still be promulgated by the President and published in the Diário da República (Official Gazette) before it becomes binding.

As of the date of this alert, the Code has not yet been published in the Diário da República. Until it is published and enters into force, the current IRT rules continue to apply, including for all 2026 payroll.

The details in this alert are based on the revised draft law of 16 January 2026 and on statements by the Ministry of Finance and the General Tax Administration (AGT). They may change in the published text.

Key Dates

1 April 2025: Draft IRPS Code released for public consultation by the General Tax Administration (AGT).
16 January 2026: Revised IRPS proposal (Proposta de Lei) published.
19 March 2026: Proposal approved in the general vote (na generalidade): 109 votes in favour, 68 abstentions.
25 June 2026: IRPS Code approved in the final global vote.
Pending: Promulgation by the President and publication in the Diário da República.
1 January 2027: Expected entry into force. Income earned in 2027 is taxed separately by category.
1 January 2028: Full aggregation of income applies.
15 March 2028: First annual IRPS returns due, covering 2027 income.
31 March 2028: Payment deadline for tax due on 2027 income, payable in up to six monthly installments.

What’s Changing for Employment Income

The table compares the current IRT rules with the IRPS as approved. Legal references for the current rules are listed below the table.

Area	Before (IRT)	After (IRPS)	Payroll Impact
Tax scope	Income from services rendered to persons or entities in Angola, whether or not the employee is resident	Residents: worldwide income. Non-residents: Angola-source income only	Employee tax residency status must be captured
Tax residency	More than 90 days in Angola, or a dwelling held on 31 December as habitual residence	More than 183 days in Angola in any 12-month period, or a dwelling held as habitual residence	Days of presence to be tracked for mobile and expatriate staff
Tax bands	11 bands: 0% up to AOA 150,000, then 16% to 25%	6 progressive bands with wider intervals; the AGT has indicated a top rate of 30% on annual income above AOA 240 million	New withholding tables from January 2027 payroll; a higher top rate increases the cost of grossed-up and tax-equalised packages
Exempt income	Monthly income up to AOA 150,000	Monthly income up to AOA 150,000, exempt from tax and filing	No change to the exemption threshold
Meal and transport allowances	Non-taxable up to AOA 30,000 per month each	Non-taxable up to AOA 43,000 per month each	Update non-taxable caps on allowance pay codes
Specific exemptions	Disability or war injury of 50% or more; former combatants, veterans and war disabled registered with the supervising ministry	Exemption proposed for persons with a disability of 50% or more maintained; scope of the veterans’ exemption	Exemption flags and supporting documents to be held on employee records
Benefits in kind	Taxable; valued at the cost borne by the employer	Specific valuation rules for employer-provided housing, vehicles, low-interest loans and share plans	Benefit valuation and pay code mapping to be reviewed
Personal deductions	None; only social security contributions and non-taxable items are deducted	Education, health and housing rent expenses, supported by electronic invoices; the AGT has indicated a ceiling of AOA 1.2 million per year	Employees must retain electronic invoices; how deductions reach employees who do not file a return (payroll or AGT refund) is to be confirmed
Withholding	Final; assessed monthly by the employer	Final for employees with one employer and employment income only; an advance payment where income is aggregated	Single-employer withholding remains final
Annual return	Not required for employees; annual returns apply only to Groups B and C	Due by 15 March of the following year; employees with one employer and employment income only are exempt	First returns due by 15 March 2028 for 2027 income
Employer annual declaration (Modelo 2)	During February, per employee: name, address, tax number, social security number, income paid and tax withheld	By 15 March (draft)	Reporting calendar and file layout to be updated

Current rules: IRT Code (Law No. 18/14, as amended by Law No. 28/20): scope Art. 4; allowances Art. 2(1)(k) and (n); exemptions Art. 5(1)(d) and (f); deductions Art. 7(2); gross-up Art. 7(3); withholding Art. 10(1); annual return and Modelo 2 Art. 12; benefits in kind Art. 14. Tax bands and exemption: Law No. 14/25 (2026 State Budget). Residency: General Tax Code.

Understanding Income Aggregation

Aggregation (englobamento) means combining an individual’s income from all categories and taxing the total on a single progressive scale. Tax already withheld is credited against the final liability.

It is mandatory for individuals with income in more than one category or from more than one employer. It does not apply to non-residents.

2027 Transition Year and 2028 Full Regime

2027: The IRPS applies to income earned from 1 January 2027, but each category of income is taxed separately and the general aggregation rule does not apply. Employers withhold IRPS monthly under the new tables, and taxpayers should keep their tax documents from the start of the year. The first annual return, covering 2027 income, is filed in 2028.
From 1 January 2028: Aggregation applies in full. At the end of each year, individuals within its scope combine their income, determine the tax due and deduct the tax already withheld.

For employees with a single employer and no other income, the position does not change: monthly withholding remains final and no return is required.

Employee Profile	2027 (Transition Year)	From 2028 (Full Regime)	Annual Return
One employer, employment income only	Monthly IRPS withholding; withholding is final	No change from 2027	Not required
More than one employer	Each employer withholds IRPS monthly	Income from all employers is aggregated; withholding becomes an advance payment	Required (position for 2027 income to be confirmed)
Employment income plus other income (rental, investment or foreign)	Each category of income is taxed separately	All income is aggregated and taxed on a single progressive scale	Required

Impact on Employers

Payroll configuration: Prepare new withholding tables for the January 2027 payroll and update the non-taxable caps for meal and transport allowances. Benefit-in-kind items, particularly housing, vehicles and employee loans, should be reviewed against the new valuation rules.
Employee data: Employers with globally mobile or expatriate staff should capture tax residency data, including days of presence in Angola. Employee records should identify employees entitled to a specific exemption.
Net-pay arrangements: The current IRT Code already prohibits employers from bearing an employee’s tax, and the draft IRPS Code carries this forward. Net-pay and tax-equalised packages should be reviewed, particularly for expatriates.
Reporting: Monthly IRPS withheld must be remitted by the last working day of the month following payment, and remuneration maps must continue to be submitted to the tax authority. The employer’s annual declaration (Modelo 2) is expected to be due by 15 March, subject to the final text.
Employee communication: Employees with more than one employer, or with income in other categories, will be required to file an annual return. Employers should inform employees of the new filing obligations and the need to retain electronic invoices for deductible expenses.

Pending Confirmation

The following will be confirmed on publication of the Code and issue of AGT guidance: the limits and rates of the six tax bands, the 2027 withholding tables, benefit-in-kind valuation rules, deduction limits, and updated forms and e-filing specifications.