The aim of the new tax is to reduce bureaucracy and the complexity currently present in the country’s tax system, by simplifying business accounting. The draft law, currently under review in parliamentary committees, is part of recommendations from the International Monetary Fund (IMF).
The Government expects to raise nearly Kz 2.1 billion in the first year of implementation of the Corporate Income Tax (IRPC), scheduled for 2026, according to the draft law recently reviewed by the specialized committees of the National Assembly. This amount represents only around Kz 31 billion more than the revenue projected this year from the three taxes that will be abolished to make way for this new levy.
With the introduction of the new tax, the following taxes will be automatically repealed: the Industrial Tax (II), the Capital Application Tax (IAC), the Property Tax (IP) on rental income, and the Stamp Duty on receipts. The projected revenues from these taxes for 2025 are nearly Kz 1.7 billion, Kz 283.0 million, and Kz 73.6 million, respectively.
In total, the projected revenue from these three taxes for this year is slightly above Kz 2.0 billion, meaning the Government expects to collect just 1.5% more in 2026 with the new tax than what it projects for 2025 with the II, IAC, and IP—taxes that will be abolished once the IRPC takes effect.
According to Agostinho Mateus, economist and researcher at the Economic Research Center of Universidade Lusíada de Angola (CINVESTEC), this is a reasonable growth, considering that the main objective of the measure is the “simplification and efficiency of the tax collection system and not necessarily an immediate increase” in revenue.
The expert notes that this approach may help reduce tax evasion and improve compliance, especially in a context where non-oil tax revenues are low compared to the financing needs of the General State Budgets. “Therefore, more than simply looking at tax revenue, it’s essential to understand whether conditions are being created for businesses to produce, generate value, and thus contribute to sustained economic growth,” he argues.
The draft law under discussion is part of IMF recommendations to introduce a unified taxation system not only for corporate entities but also for individuals, as seen in other countries.
The Government argues that the tax will reduce bureaucracy and complexity in the current system, simplifying company accounting. In practical terms, it is a simpler, fairer tax that meets modern-day challenges and significantly contributes to increasing revenue collection from corporate income.
Thus, adopting a single tax on Corporate Income represents progress in Angola’s tax system, providing solutions that help improve economic competitiveness, simplify and systematize legislation, reduce distortions, align with international best practices, and better integrate the different income categories.
In addition to broadening the tax base, the draft law aims to strengthen the business fabric, introduce greater tax fairness, boost revenue collection, eliminate international double taxation, bring taxation and accounting closer together, and reduce tax evasion and fraud.
The IRPC will be levied on profits derived from commercial or industrial activities. Taxpayers subject to the IRPC include commercial companies, civil companies with or without commercial form—even those without legal personality—cooperatives, foundations, associations with or without legal personality, autonomous funds, public enterprises, and other legal entities governed by public or private law, with headquarters, effective management, or a permanent establishment in national territory.
Source: Expansão
