Taxes in Mozambique

The Ministry of Economy and Finance sets the national framework, and the Autoridade Tributária de Moçambique (AT), including its tax administration divisions, manages registration, assessments, declarations, payments, audits and refunds. Alfândegas handles customs matters. Municipalities administer local taxes such as SISA on property transfers, IPRA on property and other locally applicable charges. Municipal rates and procedures depend on the municipality and the transaction or property concerned. The main personal income tax is IRPS. It applies to worldwide income of individuals and covers employment income, business or professional income, capital income and gains, rental income and other income. Employers generally withhold tax from salary payments using Modelo 11. An individual may also have to submit an annual Modelo 10 declaration. AT materials describe progressive IRPS rates reaching up to 32%. Tax residence rules require current checking because Lei n.º 11/2025 revised the IRPS framework; an older 180-day explanation should not be applied on its own. The main corporate income tax is IRPC. It can apply to legal entities, resident entities, permanent establishments and Mozambique-source income of non-residents. The stated general AT rate is 32%, but sector-specific rules and the current tax code can change the calculation. Companies may have withholding obligations, advance payments, annual Modelo M-22 declarations and information or accounting returns. Transfer-pricing information for related cross-border transactions can involve Modelo IRPS M-20 Anexo I. Fiscal records and supporting documents generally need to be kept for at least ten years where the applicable rules require that period. Value-added tax is IVA. It covers taxable supplies of goods and services and imports. Current AT portal information states a general rate of 16%, a reduced rate of 5% and zero-rated or exempt treatment for specified goods and services. Lei n.º 10/2025 changed the IVA framework, including digital goods or services and electronic obligations. Older forms may still display 17%, so the rate and filing procedure should be checked against the current AT notice or tax portal before invoicing or filing. Import IVA and customs charges arise during customs clearance where applicable. Smaller taxpayers may qualify for ISPC, a simplified regime. Older AT information used a turnover ceiling of MT 2,500,000, but Lei n.º 9/2025 changed the regime. The current AT implementation and eligibility rules therefore need to be checked rather than relying on the older ceiling. Other national charges include ICE, especially for alcohol, tobacco and luxury goods, and Imposto do Selo on documented acts where IVA does not apply and no exemption covers the act. Every individual and legal entity, including a tax-exempt one, needs a NUIT for tax and customs dealings. The nine-digit number is issued by the AT or relevant DAF/SIC channel without a fee. Registration, changes and closure can be handled through AT procedures, including e-Tributação, e-Declaração and the Portal do Contribuinte. IVA and ISPC have been subject to portal filing requirements since 2022. Forms include IVA Modelos A, B, C and D, ISPC Modelo 30, IRPS M-10 and IRPC M-22, M-20, M02 and M03. Payment and filing dates depend on the tax and the current fiscal calendar. Late filing or payment can lead to interest, fines and, in some cases, enforced collection. Keep declarations, payment receipts, invoices, customs records and other evidence because the AT can audit, correct declarations and use indirect assessment methods. A taxpayer may have rights to information, reasons for an assessment, notification and a refund where an authority error caused an overpayment. A refund can arise from excess IVA credit, although the tax authority may offset the amount against existing tax debts. Current professional interpretations indicate that 2025/26 reforms may extend IVA refund processing to 150 days; the primary legal text and current AT practice should be confirmed for an individual claim. Objections and appeals can include reclamação, recurso hierárquico, impugnação or recurso contencioso, depending on the decision and procedure. Cross-border cases depend on residence, the source of income and whether a permanent establishment exists. Non-residents may face withholding or gross taxation on Mozambique-source income under the applicable code. A double-tax treaty applies only when a specific treaty covers the situation; there is no automatic treaty benefit. IRPC provides for foreign-tax credits in relevant cases. Transferring foreign income from Mozambique may require tax payment or security first. Customs preferences can arise under SADC arrangements, bilateral agreements with Zimbabwe or Malawi, the EU Economic Partnership Agreement and other origin rules, subject to their conditions.