On Thursday, the 19th, the Angolan Parliament approved in principle the bill enacting the new Personal Income Tax Code (IRPS), with 109 votes in favor, none against, and 68 abstentions.
The bill aims to simplify the national tax system and strengthen tax fairness by proposing the replacement of the current schedular taxation model with a unitary model that is simpler and more transparent.
Angolan Finance Minister Vera Daves de Sousa clarified that the objective of this legislative initiative is to eliminate the current system’s complexity, as well as to ensure the simplification of income taxation by correcting distortions in the system arising from the current complex nature of taxes, and to align with international best practices in the field of taxation of income from individuals and corporations.
Vera de Sousa noted that the simplification aims to provide greater regulatory consistency, reducing the risk of errors in compliance with obligations and in tax payments by taxpayers, while also lowering accounting and tax advisory costs.
However, he said that, with this proposal, the government is ensuring greater tax fairness by allowing low- and middle-income earners to face a lower tax burden compared to higher-income earners, thereby increasing disposable income for families, especially the most vulnerable ones.
The proposal also provides for the introduction of a tax-free threshold for lower incomes, tax benefits for people with disabilities and diplomatic personnel, as well as the possibility of deducting social expenses, particularly in education, healthcare, and medication.
According to the Minister of Finance, the law will be implemented in phases, with the filing process set to begin in 2027 and the law taking full effect in 2028, allowing taxpayers and institutions time to adapt.
The minister went on to emphasize that the General Tax Administration and the Finance Administration possess the necessary technological capacity and intend to continue strengthening it to ensure the smoothest possible implementation.
The minister assured that they are working on an implementation plan that could be finalized with the approval of the proposal currently under discussion in parliament.
“This plan has a strong focus on tax literacy and also relies on the engagement and active participation of our partners in civil society, associations, technical and business groups, and the Economic and Social Council, not to mention the academic community,” she noted.
Source: Forbes África Lusófona
