Tax filing and payments
As a response to the challenge of mitigating the spread of COVID-19, as well as with the objective of increasing revenue collection, reducing administrative costs inherent to revenue management, reducing cash handling and payment fraud while also improving revenue accounting, the Mozambican Tax Authority (MTA) launched an online platform (https://edeclaracao.at.gov.mz/), which enables entities to file their tax returns online.
The platform is in its initial phase and so far only allows the online submission of Value Added Tax (VAT) returns where tax is payable, Personal Income Tax (PIT) on employment income payment returns (M/19) and Corporate Income Tax (CIT) payment returns (M/39). It is expected that in future the platform will allow for submission of more tax returns and tax relevant documents.
As far as payment of taxes is concerned (i.e, VAT, PIT on employment income and CIT), the taxpayers that are registered in the online platform must generate a specific reference number from the platform and use it when instructing its commercial bank to proceed with the payment of the applicable taxes. The payment slip issued by the commercial bank is sufficient proof that the taxes have been paid. The taxpayers that are not yet registered in the online platform still need to physically submit proof of payment at the tax office in which it is domiciled and obtain the respective receipt issued by the MTA.
VAT refunds for companies operating in the extractive industry
The Government of Mozambique recently introduced changes to the chapter of the VAT Refund Regulations that deals with the special regularisation regime for companies operating in the extractive industry. The changes that were introduced aim to extend the special VAT regularisation regime to:
- companies operating in the extractive industry that are in exploration and development phases of their projects (previously the regime was only applicable to those in production phase), provided certain conditions are met;
- special purpose entities owned by the holders of petroleum exploration and production concessions with the approval of the Government of Mozambique, as well as to the first tier subcontractors.