The Mozambique Tax Laws, Rules & Regulations are a set of laws that govern taxation in Mozambique. The tax laws in Mozambique are not very much detailed and there is no specific taxation code or legal document that defines the tax law.
In this section, we will talk about the different taxes in Mozambique and their respective rates. At present, there are three major taxes namely: income tax, consumption tax, and property tax which have been introduced to replace the old sales tax system.
The consumption taxes in Mozambique includes a variety of consumption taxes such as VAT (value-added tax), entertainment tax, lottery ticket sales tax, and lotteries’ administrative fees to mention just a few.
Learn more; https://africa-hr.com/mozambique-employer-of-record/
Mozambique’s Tax System
The Mozambican tax system is a progressive tax system with a top marginal rate of 35%.
The Mozambican Tax system is a progressive tax system with a top marginal rate of 35%. A progressive system means that as the income increases, the percentage of taxes paid go up.
In Mozambique, there are 4 types of taxes:
- Income Tax- Withholding Income Tax
- Corporate Income Tax
- Value Added Tax (VAT) or Goods and Services Tax (GST)
- Excise Duties
Importance of Understanding Mozambican Taxes
The country of Mozambique is a beautiful, diverse and welcoming country. It’s one of the few African countries that still have a colonial-era flag and much of the country hasn’t changed since those days.
Mozambican taxes don’t apply to people who reside outside Mozambique or who are not employed in the country.
Mozambican Income Tax
Mozambique’s income tax is progressive – which means that the more income you have, the higher your rate of taxation will be.
The tax rates are as follows:
– 10% on the first 50 350 000 MZN
– 20% on the next 100 000 MZN
– 30% on the next 200 000 MZN
– 40% on all amounts above that.
The Mozambican Corporate Tax System
This section will present the Mozambican Corporate Tax System and the relevant information for a company that is registered to do business in Mozambique.
The corporate tax system in Mozambique is a progressive tax system that means that the more profit a company makes, the higher percentage of taxes they have to pay. In addition, there are three rates for corporations: 20 percent, 30 percent, and 35 percent.
Basic Facts to Know about the “Taxability” of Foreigners Working in Mozambique
The law is clear that foreigners are not entitled to the same tax benefits as citizens, but specific rules can vary by country.
The Mozambican government has made it clear that all foreigners are required to pay taxes for their work in the country.
Additionally, foreign workers will need to submit a tax declaration and pay taxes on the total amount of their income earned throughout the year.