Angola – Transfer Pricing (2025)

Legal framework and scope

Angola’s transfer pricing framework is based on provisions within its corporate income tax regime and on a specific large taxpayers regulation. The Arm’s Length Principle is explicitly referenced in the Corporate Income Tax, n.º 1, article 50, approved by Law n.º 26/20. The Large Tax Payers regulation, Presidential Decree n.º 147/13, October 1st (the “Large Taxpayers Decree”) sets out substantive and procedural TP requirements applicable to entities classified as large taxpayers.

The Large Taxpayers Decree contains a definition of related parties in article 11. Special relationships are deemed to exist when one entity can exercise, directly or indirectly, significant influence over the management decisions of the other. The decree lists illustrative situations: (a) where administrators or managers, and their spouses, ascendants and descendants, directly or indirectly hold not less than 10% of the capital or voting rights in the other entity; (b) when the majority of members of administrative or management bodies are the same people or, if different persons, are linked by marriage, de facto union or kinship in a straight line; (c) when entities are linked by a subordination contract; (d) when they are in relations of dominance or reciprocal participation, or linked by subordination contract, parity group or other equivalent effect under company law; (e) when commercial relations between them represent more than 80% of the total volume of operations; (f) when one represents more than 80% of the credit portfolio of the other. These criteria determine whether transactions fall under Angola’s TP rules.

Arm’s Length Principle and the role of the OECD Guidelines

The OECD Transfer Pricing Guidelines (TPG) are not legally binding in Angola, but they are used as an explanatory instrument and as a principal reference by the administration. Angolan authorities incorporate the OECD Guidelines into internal procedures, particularly for comparability analysis and compliance issues, even if not every recommendation is codified into domestic law.

Definition of related parties (thresholds, control, kinship, PEs)

As noted, article 11 of the Large Taxpayers Decree delineates related-party relationships and includes thresholds and indicators of control: a 10% participation/voting rights threshold for shareholding relationships, and 80% thresholds for dependency by operations or credit portfolio. It also addresses links arising from common management or family relationships and contractual subordination. The country profile does not provide a separate domestic legal definition specific to Permanent Establishments (PEs), but Angola applies international approaches to PE profit attribution as described below.

Methods and application criterion

Article 13 of the Large Taxpayers Decree specifies that only three traditional transfer pricing methods are provided for: Comparable Uncontrolled Price (CUP), Resale Price Method and Cost Plus Method. Angola applies the “most appropriate method” criterion: taxpayers are expected to choose the method that best fits the transaction’s facts and circumstances rather than following a strict statutory hierarchy. Thus, while the statute enumerates these three methods, the legal interpretation requires using the method most appropriate to the transaction.

Comparability and ranges

Angola largely follows the comparability guidance in Chapter III of the OECD TPG within its internal procedures, addressing functions, assets and risks, timing, and other comparability factors. The domestic law does not prefer national comparables over foreign ones; due to limited availability of local financial information, preference for domestic comparables is not applied in practice. The tax administration does not use secret comparables. The current TP legislation does not explicitly require or prohibit the use of arm’s length ranges or statistical measures; internal procedures allow their use and future TP legislation is expected to address this matter more explicitly. Comparability adjustments are not mandated by current domestic rules.

Documentation and filing (Master, Local, CbC, thresholds, language, timing, forms)

Under article 12 of the Large Taxpayers Decree, taxpayers are required to prepare transfer pricing documentation. The legislation specifically requires a Local file consistent with Annex II to Chapter V of the OECD TPG. The law does not require a Master file (Annex I) or a Country-by-Country report (Annex III) under the rules reported in the country profile. The documentation obligation applies to taxpayers with operating revenue exceeding AKZ 7 000 million and is limited to entities classified as large taxpayers. The large taxpayer must submit the TP File between the fiscal year end (31 December) and June of the following fiscal year. The file must be prepared in Portuguese. If an entity meets the conditions for documentation but fails to submit, a fine of up to AKZ 100 000 (approximately EUR 130) can be imposed.

Safe harbours, exemptions and materiality

There are no safe-harbour rules or other specific simplification measures for TP in Angola according to the country profile. No exemptions from documentation obligations are provided other than the fact that the documentation requirement is limited to large taxpayers above the stated threshold.

APAs and MAP; procedures and timelines

The administrative mechanisms to prevent or resolve TP disputes include the possibility of obtaining rulings and the availability of Mutual Agreement Procedures (MAP). Advance Pricing Agreements (APAs) are not available under the framework described in the profile: no unilateral, bilateral or multilateral APAs are indicated. MAPs apply only where a Double Tax Agreement exists between Angola and the other jurisdiction involved.

Penalties and other considerations (secondary adjustments, recharacterization, year-end adjustments, PEs)

Angola allows year-end adjustments and makes secondary adjustments, as noted in the country profile. The tax authority can recharacterize transactions or make adjustments when it considers that related-party conditions depart from arm’s length conditions, in line with general domestic income tax rules. Regarding attribution of profits to Permanent Establishments, Angola follows the Authorised OECD Approaches (AOA) in two tax treaties, applying those approaches under the relevant treaties.

Conclusion

Angola presents a TP regime concentrated in the corporate income tax and a dedicated large taxpayer decree that defines related-party criteria, limits explicit statutory methods to three traditional approaches but requires selection of the most appropriate method, and establishes documentation obligations for large taxpayers above an AKZ 7 000 million threshold. The OECD Guidelines serve as an explanatory guide integrated into administrative practice, particularly for comparability analysis. Documentation must be submitted in Portuguese within a defined post-year-end window and non-compliance carries a monetary penalty. Angola is preparing new transfer pricing regulations, which are expected to expand and clarify current rules.

References

For the source profile and additional information, see: https://www.oecd.org/en/topics/sub-issues/transfer-pricing/transfer-pricing-country-profiles.html