We enjoy working with non-governmental organizations and hold them in high regard in our office.

We offer services in Portuguese and English. If required, we can provide management account reports in Portuguese for government submissions and in English for clients who do not speak Portuguese.

Our clients are businesses and companies from a variety of industries, including:

• Agriculture
• Aviation
• Construction
• Education
• Engineering
• Hospitality
• Logistics
• Security

Corporate taxes in Mozambique, also known as the Corporate Income Tax (IRPC), apply to resident corporations and non-resident companies with a permanent establishment in the country. Resident corporations, defined as those with their head office or effective management in Mozambique, are subject to IRPC on their worldwide income. Non-resident companies with a permanent establishment in Mozambique are liable for IRPC on the income related to that establishment.

Non-resident companies without a permanent establishment in Mozambique are taxed on specific types of income sourced within the country, including capital gains, dividends, interests, royalties, services, and rents. The standard tax rate for taxable profits is 32%, while non-documented expenses are subject to a higher tax rate of 35%.

The tax year typically follows the calendar year from 1 January to 31 December. Exceptions to this can be granted by the Finance Minister, but only if a company, with more than a 50% ownership, is owned by another company with a different tax year. In such cases, the company may adopt the different tax year.

Taxable persons in Mozambique include resident entities whose primary activity is commercial, industrial, or agricultural, as well as non-residents with a permanent presence in Mozambique.

For resident companies, worldwide capital gains are included in the taxable income. The gain (or loss) is calculated as the difference between sales proceeds and acquisition costs. The acquisition cost can be adjusted based on official inflation coefficients.

If the proceeds of the sale are reinvested in other fixed assets within three tax years following the year of the sale, 100% of the gain obtained (net of any related losses) will be excluded from taxation. This means that the company will not have to pay tax on that portion of the gain. However, if only a part of the consideration is reinvested, only the corresponding part of the gain qualifies for the tax relief. In such cases, the remaining portion of the gain will still be subject to taxation.

It’s important to note that these rules apply to resident companies and their capital gains. Non-resident companies may have different rules and regulations regarding capital gains tax in Mozambique.

A transfer pricing policy is of great importance for corporate taxes in Mozambique. As a multinational organization operating in multiple jurisdictions, having a transfer pricing policy in place ensures that the prices set for intra-company transactions are fair, reasonable, and comply with Mozambican tax laws and regulations.

By adhering to the arm’s length principle and maintaining proper documentation, a company can mitigate the risk of tax disputes, penalties, and potential double taxation. Furthermore, a well-defined transfer pricing policy helps allocate profits appropriately among different jurisdictions and prevents the improper shifting of profits to low-tax jurisdictions.

Regular monitoring and periodic reviews of the policy also ensure ongoing compliance and enable adjustments to reflect changes in business operations or regulatory requirements. Overall, implementing a transfer pricing policy is crucial for multinational organizations in Mozambique to effectively manage their transfer pricing practices and ensure compliance with corporate tax
regulations.

Please download the key fiscal dates here

Permanent establishments of non-resident companies are taxed at the same rates as resident companies.

In Mozambique, payment on account (PC) is estimated by taking 80% of the previous tax year's Corporate Income Tax (IRPC) liability, deducting any tax withheld at source, and dividing the remainder into three equal installments.

PC = (IRPC of previous year - withheld tax from previous year) x 80% / three installments.

Mozambique has agreements to prevent double taxation with the following countries:

• Botswana
• India
• Italy
• Macao Special Administrative Region
• Mauritius
• Portugal
• South Africa
• United Arab Emirates
• Vietnam

When there is no permanent establishment, tax rates range from 10% to 20%, depending on the source of income.

In Mozambique, special payments on account (PEC) are calculated as 0.5% of the sales and/or services rendered during the previous financial year. However, there is a minimum amount of 30,000 MT and a maximum amount of 100,000 MT. This calculation is made net of provisional tax payments made in the previous year, and the resulting amount is divided into three equal installments.

PEC = (Turnover of previous year x 0.5% – PC of previous year) / 3 installments

Strategically positioned along the southeastern coast of Africa, Mozambique offers an alluring blend of natural beauty and burgeoning business opportunities. With its extensive coastline, well-equipped deep-water ports, and a year-round favourable climate, Mozambique serves as a prime destination for diverse investments. The country is blessed with fertile land and an array of natural resources including coal, natural gas, and minerals, making it a potential powerhouse for economic development.

Mozambique is not just a land of potential but an active arena for growth and innovation, facilitated by progressive government reforms and attractive investment incentives. These reforms are geared towards creating a more streamlined and efficient business environment. Recent measures include simplifying administrative procedures, rolling out a new e-visa system to ease the entry of foreign professionals, and revising investment and labour laws to align with global best practices.

The business landscape, however, presents a blend of opportunities and challenges.

Recognizing the critical role of climate resilience, the Mozambican government is actively seeking partnerships to combat environmental challenges such as tropical cyclones and flooding, which are exacerbated by its extensive coastline. These initiatives are part of a broader strategy to ensure sustainable development and economic stability.

Economic recovery is on the horizon as Mozambique emerges from the global slowdown induced by the COVID-19 pandemic. Growth is expected to accelerate, fuelled by the resurgence of the services sector, ramp-up in liquefied natural gas production, and robust commodity prices. Notable projects driving this momentum include the Sasol Temane Central Processing Facility Expansion and the Mphanda Nkuwa Hydroelectric Dam, which promise to significantly boost the country’s energy and infrastructural capabilities.

With the government's introduction of a package of economic acceleration measures in 2022, including tax reductions and business process reforms, Mozambique is sharpening its competitive edge. The new Commercial Code and labour law changes are set to further enhance the business climate, making Mozambique an increasingly attractive destination for global investors.

Step into Mozambique’s business landscape and be part of its journey towards a prosperous and sustainable future. The country offers not just a market, but a partnership for growth and a commitment to mutual success.

Download the minimum salary PDF here

If a public holiday falls on a Sunday it is officially observed on the next day (Monday).

Please download the 2024 visa, residence, and other permit fees in both English and Portuguese here

On 21 February 2024, the new Labour Law, Law no. 13/2023 of 25 August 2023, came into force.

Please download Labour Law no 13/2023
in Portuguese here.
in English here.

Please download a summary of the Private Investment Law (Law No. 8/2023, of 9 June) here