Understanding corporate income tax and other business taxes in Mozambique is crucial for companies operating within the country. Alongside corporate income tax, businesses should be aware of other taxes, including VAT, payroll taxes, capital gains tax, withholding tax, and property tax. It is advisable to consult with a tax professional or refer to the official website of the Mozambique Tax Authority for the most accurate and up-to-date information. By fulfilling their tax obligations, businesses can operate in compliance with Mozambican tax laws and contribute to the growth and development of the country's economy while taking advantage of its emerging market opportunities.
Corporate Income Tax:
Mozambique imposes corporate income tax on the profits earned by companies operating within its jurisdiction. The corporate income tax rate in Mozambique is a flat rate of 32%. This rate applies to both resident and non-resident companies engaging in commercial, industrial, or professional activities in the country.
Types of Business Taxes in Mozambique:
Value Added Tax (VAT): Mozambique operates a Value Added Tax (VAT) system. The standard VAT rate in Mozambique is currently set at 17%. However, certain goods and services may be subject to reduced rates of 5% or exempted from VAT.
Payroll Taxes: Employers in Mozambique are responsible for deducting and remitting payroll taxes on behalf of their employees. These taxes include contributions to social security schemes, medical insurance, and work injury funds. The rates for payroll taxes vary based on the employee's income and specific circumstances.
Capital Gains Tax: Capital gains tax is applicable in Mozambique on the disposal of certain assets, such as real estate and shares. The tax rate for capital gains varies depending on the type of asset and the period of ownership.
Withholding Tax: Mozambique imposes withholding tax on various types of payments made to non-residents, such as dividends, interest, royalties, and technical service fees. The withholding tax rates vary depending on the nature of the payment and may be subject to tax treaties.
Property Tax: Property owners in Mozambique are subject to property tax, known as "Imposto Predial Urbano" (IPU). The tax is levied on the ownership of urban properties, and the rate varies based on the location and value of the property.
Mozambique Tax Authority Website:
For comprehensive and up-to-date information on business taxes in Mozambique, it is recommended to visit the official website of the Mozambique Tax Authority.
Mozambique Tax Authority Website: Official Mozambique Tax Authority Website