Taxation:
At SMA, we understand the importance of optimizing your tax profile within the Mozambican legislative environment. Our experienced tax advisors possess strong knowledge of the local tax laws and are well-versed in the various options available to structure your business and taxes effectively. When working with our clients, we take the time to understand their businesses and concepts, analyzing their unique circumstances to identify the optimum tax structure.
Mozambique has three main taxes: INSS (Social Security), IRPS (PAYE), and IRPC (Company tax). Each tax has specific submission deadlines, and failure to comply may result in fines and penalties from government departments. For INSS, both employees and employers contribute, with the company responsible for paying 7% of the employee's gross salary to the INSS department by the 10th of each month. Nationals and foreigners are required to pay INSS on salaries, although exceptions can be requested for foreigners contributing to a national pension fund in their country of origin.
IRPS is deducted at source from various income sources such as salaries, rents, foreign services, and more. Payments must be made to the Finance department by the 20th of the following month, using the Modelo 10 form. The percentage of retention varies based on specific cases.
IRPC, charged at a flat rate of 32% on company profits, requires submission before May 31st of each year. Certain expenses are not deductible for tax purposes, including fines, partial fuel expenses, certain vehicle maintenance costs, representation expenses, and more.
At SMA, we offer tax assessments and business evaluations to identify opportunities for tax optimization. Our goal is to recommend ways to make your company as tax-efficient as possible, taking advantage of eligible deductions, tax credits, and incentives. We work closely with our clients to develop tailored tax planning strategies aligned with their long-term financial goals.
By staying abreast of the latest tax developments, we provide proactive advice and guidance to optimize your tax position and enhance overall financial performance. With SMA as your trusted tax advisor, you can navigate the complex tax landscape with confidence, knowing that your tax obligations are effectively managed and your tax burden is minimized.
Mozambique has three main taxes: INSS (Social Security), IRPS (PAYE), and IRPC (Company tax). Each tax has specific submission deadlines, and failure to comply may result in fines and penalties from government departments. For INSS, both employees and employers contribute, with the company responsible for paying 7% of the employee's gross salary to the INSS department by the 10th of each month. Nationals and foreigners are required to pay INSS on salaries, although exceptions can be requested for foreigners contributing to a national pension fund in their country of origin.
IRPS is deducted at source from various income sources such as salaries, rents, foreign services, and more. Payments must be made to the Finance department by the 20th of the following month, using the Modelo 10 form. The percentage of retention varies based on specific cases.
IRPC, charged at a flat rate of 32% on company profits, requires submission before May 31st of each year. Certain expenses are not deductible for tax purposes, including fines, partial fuel expenses, certain vehicle maintenance costs, representation expenses, and more.
At SMA, we offer tax assessments and business evaluations to identify opportunities for tax optimization. Our goal is to recommend ways to make your company as tax-efficient as possible, taking advantage of eligible deductions, tax credits, and incentives. We work closely with our clients to develop tailored tax planning strategies aligned with their long-term financial goals.
By staying abreast of the latest tax developments, we provide proactive advice and guidance to optimize your tax position and enhance overall financial performance. With SMA as your trusted tax advisor, you can navigate the complex tax landscape with confidence, knowing that your tax obligations are effectively managed and your tax burden is minimized.