Angola | 2026 Income Tax Law Enacted: Key Payroll Changes Effective 1 January 2026

Angola | 2026 Income Tax Law Enacted: Key Payroll Changes Effective 1 January 2026

1. Publication of the New Law

The Angolan Government has formally enacted the 2026 State Budget Law (Lei n.º 14/25, Orçamento Geral do Estado 2026), which was published in the Diário da República on 30 December 2025 and entered into force on 1 January 2026.

This legislation includes amendments to the Employment Income Tax Code (Imposto sobre o Rendimento do Trabalho – IRT), specifically through Article 21 (Artigo 21) of the law, which revises the rules applicable to employment income (Rendimentos do Trabalho – Grupo A).

2. Summary of Payroll-Relevant Changes

2.1 Increase in the Tax-Exempt Threshold

Under Article 21, the monthly income tax exemption threshold for employees has been increased from Kz 100,000 to Kz 150,000.
This means that:

  • The first Kz 150,000 of monthly employment income is now fully exempt from IRT (isenção de IRT).
  • Employees earning up to Kz 150,000 per month will pay no income tax.
  • Employees earning above this amount will only be taxed on the portion exceeding Kz 150,000, according to the updated tax tables.

This update is reflected in Annex I (Anexo I) of the law, which contains the revised tax brackets and fixed amounts used for payroll calculations.

3. Updated Income Tax Tables (IRT – Group A)

See attached ss per Annex I (Anexo I) of Lei n.º 14/25

No.

Income Groups (GRUPOS DE RENDIMENTO)

Fixed Portion (Parcela Fixa)

Tax (Taxa)

1st Scale

Above 0

Up to 150,000

0

0%

2nd Scale

Above 150,000

Up to 200,000

12,500

16.00%

Excess of 150,000

3rd Scale

Above 200,000

Up to 300,000

31,250

18.00%

Excess of 200,000

4th Scale

Above 300,000

Up to 500,000

49,250

19.00%

Excess of 300,000

5th Scale

Above 500,000

Up to 1,000,000

87,250

20.00%

Excess of 500,000

6th Scale

Above 1,000,000

Up to 1,500,000

187,250

21.00%

Excess of 1,000,000

7th Scale

Above 1,500,000

Up to 2,000,000

292,250

22.00%

Excess of 1,500,000

8th Scale

Above 2,000,000

Up to 2,500,000

402,250

23.00%

Excess of 2,000,000

9th Scale

Above 2,500,000

Up to 5,000,000

517,250

24.00%

Excess of 2,500,000

10th Scale

Above 5,000,000

Up to 10,000,000

1,117,250

24.50%

Excess of 5,000,000

11th Scale

Above 10,000,000

Up to –

2,342,250

25.00%

Excess of 10,000,000

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