Tax in Mozambique

Who is the tax authority and where do filings live?

Mozambique's Autoridade Tributaria de Mocambique (AT) under the Ministry of Economy and Finance administers Mozambique's tax system [SC1]. Substantive law: Codigo do IRPS, Codigo do IRPC, Codigo do IVA, Lei dos Beneficios Fiscais, Lei 27/2014 (Petroleum Activities), Lei 28/2014 (Mining), and successive amendments. Mozambique is a SADC and AfCFTA member.

What is the tax year and when are returns due?

Individual tax year is the calendar year. IRPS withheld monthly. Corporate annual returns (Modelo 22) due 31 May for prior fiscal year [SC1]. IVA monthly returns. Provisional CIT through May/August/November cycle.

Who is a Mozambican tax resident?

Under Codigo do IRPS, an individual is tax resident if (a) physically present 180+ days in tax year, (b) habitual residence in Mozambique, OR (c) Mozambican-paid employment income [SC2]. Residents taxed on worldwide income.

What are the personal income tax rates?

Progressive IRPS brackets: 10 percent up to MZN 42,000; ascending rates 15/20/25/32 percent ascending [SC1]. Top 32 percent above MZN 1,512,000. Personal allowance MZN 225,000.

How does Mozambique's corporate tax work?

IRPC 32 percent flat for resident companies [SC2]. Reduced 10 percent for agriculture and electrical-energy sectors through 31 December 2025 (post-2025 reform pending). Mining sector: 32 percent + Royalty 8 percent (basic) up to 24 percent (gemstones). Petroleum sector under Lei 27/2014: 32 percent + PSA framework + 6 percent specific-tax on gas. Withholding on dividends to non-residents 20 percent (10 percent listed shares). Pillar Two not transposed. Tax losses 5 years.

What about VAT?

IVA 16 percent under Codigo do IVA [SC3]. Reduced 5 percent on basic foodstuffs. Zero-rated on exports. E-invoicing rollout under Decreto 72/2017 progressively mandated.

How are cryptoassets taxed?

Banco de Mocambique advisory: cryptoassets restricted [SC2]. Where declared, gains under existing income-tax categories.

What is the treaty network and what are the audit triggers?

Mozambique has approximately 10 active double tax treaties [SC4]. MLI not yet ratified. SADC framework. Standard SOL 5 years; extended for fraud or for petroleum/mining-sector matters.

What are the common penalties and pitfalls for foreigners?

Penalty framework: late filings, failure to file, incorrect declarations, transfer-pricing adjustments [SC5]. Common pitfalls: (1) Mozambique LNG sector creates elevated-framework complexity under Lei 27/2014 with PSA + 32 percent IRPC + 6 percent gas-specific tax; (2) Cabo Delgado conflict context affecting LNG project operability; (3) mining-sector elevated framework with sliding-scale royalty 8-24 percent; (4) post-2018 hidden-debt scandal affecting tax-administration priorities; (5) Pillar Two not transposed; (6) limited treaty network (10 DTCs); (7) MLI not yet ratified; (8) lusophone tradition with separate Codigo do IRPS (employment-personal) vs Codigo do IRPC (corporate) framework; (9) Lei dos Beneficios Fiscais incentive framework for SEZ/IFZ; (10) AfCFTA member; (11) MZN-denominated tax base with metical volatility.