Angola | Tax Alert | Amendments to the Personal Income Tax Code
Law no. 28/19, September 25th, amended the regime for vacation and Christmas allowances, which are now included in the taxable income subject to Personal Income Tax (“CIT”). This means that these earnings – not subject to taxation up to this date – are included in the monthly remuneration of the employee, being subject to the applicable progressive tax rates. However, there is no cumulation with the monthly base salary, meaning that the taxation of these allowances is made separately.
Furthermore, this Law provides that income earned by national citizens over sixty years-old no longer benefit from CIT exemption, being taxable, according to the progressive tax rates. It is important to highlight that the new regime is in force from the date of publication, being applicable to all income paid from September 26th.
OnCorporate has over 14 years of experience in the Angolan market, being able to assist in the implementation of all proceedings that may be necessary to the proper application of the legislative amendments expressed hereto.