Verified Facts
Mozambique's tax system is based on a territorial taxation regime, where individuals and companies are taxed on their income derived from sources within the country, with tax rates ranging from 10% to 32% for personal income and 32% for corporate income.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Mozambique's tax system is based on a territorial taxation regime, where individuals and companies are taxed on their income derived from sources within the country. This means that individuals who are resident in Mozambique are taxed on their worldwide income, but only if it is derived from sources within the country. Non-residents, on the other hand, are only taxed on their income derived from sources within Mozambique. The residency rules for tax purposes in Mozambique are based on physical presence, where an individual is considered a resident if they have been present in the country for at least 183 days in a calendar year.
The tax system in Mozambique is administered by the Mozambican Tax Authority, which is responsible for collecting taxes, enforcing tax laws, and providing tax guidance to taxpayers. The tax year in Mozambique runs from January to December, and taxpayers are required to file their tax returns by the end of April of the following year. Mozambique has a tax treaty network with 12 countries, which helps to prevent double taxation and fiscal evasion.
Personal Income Tax
| Income Bracket (MZN) | Tax Rate |
|---|---|
| 0 - 35,000 | 10% |
| 35,001 - 105,000 | 15% |
| 105,001 - 210,000 | 20% |
| 210,001 - 420,000 | 25% |
| 420,001 and above | 32% |
| The tax rates in Mozambique are progressive, with higher income earners paying a higher tax rate. Taxpayers are entitled to various deductions and allowances, including a personal allowance, a deduction for mortgage interest, and a deduction for charitable donations. Tax returns must be filed electronically, and taxpayers are required to pay their taxes in Mozambican Metical (MZN). The tax authority also provides a range of tax incentives, including a reduced tax rate for individuals who invest in certain industries, such as agriculture and manufacturing. |
Corporate & Business Tax
- The corporate tax rate in Mozambique is 32%, which applies to companies that are resident in the country.
- Small businesses with an annual turnover of less than MZN 5 million are eligible for a reduced tax rate of 20%.
- Mozambique has several free zones, including the Maputo Free Zone and the Nacala Free Zone, which offer tax incentives and other benefits to companies that operate within these zones.
- Companies are required to register with the tax authority and obtain a tax identification number before commencing business operations.
- Companies are also required to file their tax returns electronically and pay their taxes in MZN.
VAT / Sales Tax
- The standard rate of Value-Added Tax (VAT) in Mozambique is 17%, which applies to most goods and services.
- A reduced rate of 10% applies to certain goods and services, including basic foodstuffs and medicines.
- Exemptions from VAT apply to certain goods and services, including financial services and education.
- Tourists are eligible for a refund of VAT on certain goods and services, including hotel accommodation and tourist services.
For Expats & Foreign Workers
- Expats and foreign workers are considered tax residents in Mozambique if they have been present in the country for at least 183 days in a calendar year.
- Double taxation treaties apply to individuals who are resident in Mozambique and another country, to prevent double taxation and fiscal evasion.
- Expats and foreign workers are required to register with the tax authority and obtain a tax identification number.
- Social security contributions are mandatory for expats and foreign workers, at a rate of 7% of their gross income.
- Remittances of income earned in Mozambique are subject to a withholding tax of 20%, which can be reduced under a double taxation treaty.
- Expats and foreign workers are also eligible for a range of tax incentives, including a reduced tax rate for individuals who invest in certain industries.
Crypto & Investment Income
- Investment income, including dividends and interest, is subject to a withholding tax of 20%, which can be reduced under a double taxation treaty.
- Capital gains are taxed at a rate of 20%, or are included in income and taxed at the individual's marginal tax rate.
- Cryptocurrency is considered a financial asset and is subject to capital gains tax.
- Investment income earned by non-residents is subject to a withholding tax of 20%, which can be reduced under a double taxation treaty.
- Mozambique has a range of tax incentives for investors, including a reduced tax rate for individuals who invest in certain industries, such as agriculture and manufacturing.