Mozambique

Individual - Other taxes

Last reviewed - 30 July 2020

Social security contributions

Social security contributions are payable monthly on all salaries, wages, regular bonuses, or other regular income, excluding meal subsidies. The employer contributes an amount equal to 4% of monthly salary, and the employee contributes 3% of monthly salary. The employer withholds employees’ contributions. Foreign employees may apply for exemption from registration with the social security system, provided they are contributing to a similar system in their home country.

Consumption taxes

Value-added tax (VAT)

VAT is chargeable on the sale of most goods and services as well as on imports. The standard rate is 17%.

Luxury and excise taxes

Excise duties are levied on certain goods manufactured locally or imported, which are identified in a specific table that is an integrant part of the Excise Duty Act and indicates the applicable rates. Amongst others, the said table includes goods such as tobacco, beer and other alcoholic beverages, vehicles, cosmetics, cloths, airplanes, boats, etc.

Examples of excise duty rates include the following:

  • Alcoholic beverages: 40% (55% for wine of fresh grape).
  • Tobacco: 75%.
  • Air vehicle without engine: 35%.
  • Boats and other recreational or sportive crafts: 35%.
  • Cloths and respective accessories: 30%.

Property transfer taxes (SISA)

In Mozambique, a property transfer tax is charged on transfers of real estate, excluding the land, which is owned by the state. The rate of tax is 2% of the selling price of the building. When the beneficiaries live in a country with a privileged tax regime, the applicable rate is 10%.

Stamp duties and service charges

Various documents require the payment of stamp duties. Service charges are payable for the performance of certain services for official purposes, such as those rendered by public notaries. These duties vary generally from 0.03% to 50% on the amount of the transaction supported by the document to be stamped. In some other cases, the stamp duty comprises fixed amounts, ranging from MZN 0.50 to MZN 5,000.