On 25 June 2026, the National Assembly of Angola approved a new Personal Income Tax Code (IRPS), which will replace the current schedular taxation model with a unified system for taxing individual income. The new regime is expected to enter into force on 1 January 2027, applying to income generated from that date.1
Also see the previous update on IRPS, GMS Flash Alert 2025-079.
The transition to a unified personal income tax system represents a significant shift for employers, payroll managers, and globally mobile employees operating in Angola. The simplification of tax brackets and administrative procedures is intended to reduce compliance burdens, but will require organizations to adapt payroll processes, reporting obligations, and document retention practices. In particular, employees may face new requirements to file annual income tax returns starting in 2028 for income earned from 2027 onwards. For globally mobile employees, the reforms may affect tax planning, reporting of foreign or cross-border income, and access to deductions.
Previously, Angola’s personal income tax regime operated on a schedular basis, with income taxed under separate categories and a 12-bracket progressive rate structure. The current system required complex reporting and often resulted in small salary increases triggering higher marginal rates. The new IRPS code unifies taxation and reduces the number of brackets, aiming to streamline administration and align with international best practices.
The new IRPS code introduces a range of changes designed to modernize and simplify individual taxation in Angola:
The overhaul of Angola’s personal income tax regime is a notable step toward modernization and international alignment. The reduction in the number of tax brackets and the introduction of higher exemption thresholds may alleviate the tax burden for lower-income earners and simplify employer payroll management. The move to automated, aggregate financial data exchange reflects a commitment to improving compliance while respecting taxpayer confidentiality. However, organizations should be mindful of the need to update payroll systems, revise internal policies, and communicate changes to employees in advance of the 2027 implementation.
In light of the new IRPS code in Angola, organizations may wish to:
If assignees and/or their programme managers have any questions or concerns about the scope of the update, its application and potential impacts, and appropriate next steps, they should consult with their qualified professional or a member of the GMS team with KPMG in Portugal (see the Contacts section).
1 Ministério das Finanças (in Portuguese), “Assembleia Nacional aprova Proposta de Lei do Código do IRPS,” published on 25 June 2026.
The information contained in this newsletter was submitted by the KPMG International member firm in Portugal.
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