TAX·January 2026
2026 State Budget: what changes in employment tax and for Group C taxpayers
Law 14/25, published on 30 December 2025, came into force on 1 January and changes rules with direct effect on payroll.
The exemption threshold for employment income tax rises from 100,000 to 150,000 kwanzas. In practice, employees below that figure no longer have tax withheld, which means revising tables and payroll settings in the first run of the year.
The penalty for failing to deliver withheld tax, or delivering less than the amount deducted, now equals the tax outstanding rather than twice that amount. The reduction is significant, but the essential point stands: withheld tax remains fully due and, where there are indications of fraud, criminal proceedings remain possible.
For Group C taxpayers with turnover of 10 million kwanzas or more in 2025, the taxable base becomes the volume of sales of goods and services not subject to withholding, taxed at 6.5%. Regardless of turnover, Group C taxpayers keeping organised accounts become subject, with due adaptations, to the general rules of industrial tax.
It is worth confirming early which group and regime the company falls under this year. Correcting mid-year always costs more than checking in January.