Luanda: The New Personal Income Tax Code (IRPS) is scheduled for implementation in January 2027, aiming to broaden the tax base and ensure greater tax fairness, announced Jos© Leiria, chairman of the Board of Directors of the General Tax Administration (AGT). Speaking during the 5th Economy and Market Conference on Taxation, Leiria emphasized that the IRPS represents a modern approach within the ongoing tax reforms initiated in 2011, targeting both nationals and foreigners based on their income nature under current legislation.
According to Angola Press News Agency, Leiria clarified that the tax extension would impact not only foreigners residing in Angola but also Angolan nationals who reside in the country and whose income nature previously exempted them from filing tax returns. However, nationals living abroad with foreign income are not obligated to pay taxes in Angola under the proposed IRPS.
Leiria assured that the National Assembly would consider all contributions from the public consultation phase, enabling deputies to make informed policy decisions. He highlighted that the public consultation, which concluded in April, led to changes such as delaying the law's enactment from January 1, 2026, to January 1, 2027.
The tax code will keep the capital income tax on regulated markets at a low 5%. Meanwhile, real estate rental income will remain taxed at a 25% rate, resulting in a net tax rate of 15% on rental values. The IRPS will expand the tax base to previously untaxed income, including benefits like company cars, housing, and foreign-earned income.
The reform will increase the tax burden on individuals, necessitating new procedures like electronic filing and managing residence or double taxation conflicts. Companies may face challenges with lower net incomes for workers, difficulties in hiring expatriates, and the need to adjust human resources to the new tax framework.
