In every legislative environment, there is probably room to optimize your tax profile. This entails, that your tax advisor, has good, strong knowledge of the legislation and different option given by the law, in order to best structure your business and tax. When we meet our clients, we strive to understand their businesses and business concepts. We analyse, together with the client, the optimum tax structure, under the current Mozambican tax legislation.

There are 3 main taxes in Mozambique: INSS (Socia Security), IRPS (PAYE) and IRPC (Company tax). Each one of these have set dates for submissions, and failure to do so, will make the Client incur fines and other penalties from the different Government departments.

INSS is a split tax contribution by the employee(3%) and employer (4%). The company must pay across to INSS department 7% of the employee gross salary, by the 10th of the month. Nationals and foreigners alike are required to pay INSS on salaries. Exception can be requested, if  a foreigner, proves to INSS that he/she already contributes to a national pension fund in the country of origin.

IRPS is payable, by deducting at source, from salaries, rents, foreign services contracted, rents, consultants, among others, and must be paid across to Finance department by the 20th of the following month, by completting Modelo 10. The percentages of retention vary according to different cases.

IRPC is charged at a flat rate of 32%, on company profits. There are several items which are not deductable for tax purposes (fines, partial fuel, maintenance of vehicles, certain depreciation on vehicles, representation expenses, among others). Submission must be done before May 31st of each year.

We offer tax assessments and business assessments and we can recommend ways, if possible, to make your company as tax eficient as possible.