Mozambique
6. In the case of households, tax is calculated on the combined income of household members. The applicable rate is the rate that corresponds to the chargeable income divided by two. However, as per draft law, it is expected, that the tax will be calculated per each taxpayer and no more per household. 7. There are some personal abatements or rebates for individuals and families (which are expected to be reviewed in 2013). 8. Exempt income is taken into account in determining the applicable rate of tax. 9. Losses may generally be carried forward subject to a limitation of five years in respect of income from a business or profession, investments or capital gains. 10. Losses relating to agriculture, forestry and livestock activities may not be setoff against other business-related income, unless that income results from an activity of the same nature e.g. a loss from a livestock trade may not be setoff against income from forestry, whereas if the taxpayer carries on two forestry businesses, then the loss from the one forestry business may be setoff against income of the other forestry business. 11. For agricultural or livestock industry the income tax rate applicable is 10% from January 2012 until 31 December of 2015. 12. Individuals will be considered to be resident for tax purposes if they reside in Mozambique for more than 180 days in a tax year, or if resident for a shorter period and on 31 December (being the last day of the tax year) they occupy a residence under circumstances indicating an intention to continue occupancy on a permanent basis. Persons who form part of a household are deemed to be resident, provided that the person in charge of managing the household is resident in Mozambique. 13. Mozambique does not have a specific Capital Gains Tax (CGT). Capital gains or losses are included in ordinary income and taxed accordingly.
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Guide to Fiscal Information
Non-Residents Non-residents are subject to WHT on income from a Mozambican source (see Withholding Taxes). The transfer of income abroad to non-residents is not allowed unless the tax due has been paid or guaranteed. Companies A company is resident if its head office or place of effective management or control is in Mozambique, or if the business is registered in Mozambique. A resident company is taxed on its worldwide income. A non-resident company is subject to tax only on its Mozambique source income. Corporate Income Tax (IRPC) is levied on profits obtained by taxpayers during the taxation period, namely commercial or civil companies, cooperatives, public companies and other corporate entities both public and private including entities with no legal personality, whose income are not subject to taxation under the Individual Income Tax (IRPS). Income Tax Rates for Companies: Years of Assessment Commencing On or After 1 January 2012 Note Agriculture and livestock All other industries
Rate
3, 4
10%
4
32%
Notes: 1. Mozambique tax year is the calendar year, although a company may adopt any accounting date if so authorised. Consolidated tax returns are not required. Each company in a group must file a separate tax return. 2. All income and gains are included in taxable income. Expenses considered indispensable in the generation of income or gains subject to tax are deductible.
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