Rubrica - Investir no Turismo
Invest in tourist activity in Mozambique BY MALAIKA RIBEIRO, MXR - TAX & LEGAL SERVICES
T
The new Mozambican Foreign Exchange Regime
he Foreign Exchange Regime in Mozambique is regulated especially by Law No. 11/2009 of 11 March (Foreign Exchange law), and the notice of the Bank of Mozambique (BM) No. 20 / GBM / 2017 of 27 December (Foreign Exchange Regulation). Pursuant to said legislation, foreign exchange transactions are all subject to registration and are classified as: (i)current transactions (e.g. payments related to foreign trade, remittances for family expenses, etc.) and (ii) capital transactions (e.g. loans and financial credits, foreign direct investment, opening of foreign bank accounts, etc.). Below is a summary of the most relevant changes for the tourism sector: 1. Hotel and Tourism Services • Residents of hotel and tourism operators should receive their income through bank accounts at commercial banks operating in Mozambique, even if obtained through representatives abroad • The entities that provide hotel and tourism services may engage in partial foreign exchange trading, with the prior authorization of the Bank of Mozambique, and must deposit their respective amounts in a commercial bank within 48 hours. 2. Foreign Direct Investment (FDI) • FDI is authorized in Mozambique, and must be registered with the respective commercial bank, except when done through the importation of goods and equipment and carried out through the right of use of trademarks and patents, in which case it is registered with the Bank of Mozambique. • Registration must be done within 90 days after the entry of the funds. The lack of registration of FDI three years after the entry of the funds implies the non-exportation of profits or dividends and the non-re-export of the invested capital. 3.Specific Revenue Account (SRA) • The SRA, in foreign currency, must be opened by an exporter or investor, and is intended to receive export earnings, foreign investment income and funds in the form of foreign investment or external credit. • The SRA may be operated in foreign transactions, with transactions in domestic transactions being limited to (i) amortization of credits in foreign currency, (ii) provisioning of CERs in another commercial bank, (iii) constitution of term deposits and (iv) account closure. 4. Bank accounts • Foreign currency bank accounts may be opened in Mozambique by residents of the country who have a proven relationship with 84 - Julho/July 2018 • REVISTA XONGUILA © ™ Ed. 4
•
•
foreign countries or non-resident entities (e.g. exporters, companies or organizations, workers of international companies or organizations, other entities that generate or receive foreign currencies). The opening of bank accounts of residents of financial institutions abroad is subject to the authorization of BM and the presentation of (i) information on the number and domicile of the account and (ii) quarterly bank statements. The BM still has to authorize the opening of bank accounts in national currency in the country, by non-resident entities, when related to capital transactions.
5. Credits and Shareholders Loans • It is authorized the receivable of shareholders loans or credits from non-resident related entity (i) up to the amount equivalent to USD 5,000,000.00, provided that it is contracted at an interest rate lower than the base lending rate, with a higher maturity to 3 years and free of commissions or charges; or (ii) without limit of value, provided that interest free, with a maturity of 3 years or more and free of commissions and charges. • The contracting of financial credit abroad is also authorized up to an amount equivalent to USD 5,000,000.00, provided that the interest rate does not exceed the base lending rate of the credit denominated currency plus 4 basis points and has a maturity of 3 years or more. 6. Import and Export • Whenever an import or export of goods is initiated, a Term of Commitment, processed through the Single Electronic Window (JUE), must be issued. • Export earnings must be repatriated to Mozambique within 90 days and deposited in a SERA, under the terms indicated in point 3. above. Penalties for non-compliance • Contraventions - fines ranging from 10,000 MT to 100,000 MT (natural person) and from 40,000 MT to 400,000 MT (legal entity); • Especially serious contraventions - fines from 20,000 MT to 200,000MT (natural person) and from 100,000 MT to 1,000,000 MT (legal entity); • Supplementary penalties - suspension (total or partial) of aprovals for the partial exchange exercise, with or without closure of the establishment; • Criminal penalties • Joint and several liabilities among legal persons and their representatives or employees. ***** Disclaimer The information contained in this article does not constitute a legal or tax opinion, as is merely informative and its practical application does not exempt the legal and tax advice from a lawyer or other suitably qualified professional. MXR Serviços Jurídico-Fiscais, its partners and employees cannot be held liable for any procedure adopted based on the information set forth herein.*****