Residents are taxed on their worldwide income. Non-residents are taxed on income arising in Mozambique.
All individual income (employment income, capital gains, investment income, independent work, rental income, commissions, etc.) is subject to the below tax rates.
Earned income tax rates
The following are the annual tax rates applicable to individual income:
|Annual income (MZN*)||Rate (%)||Deduction (MZN)**|
* Mozambican metical
** Amount deductible after applying rate to whole amount.
For non-Mozambican residents, the earned income tax is withheld and remitted by the employer or other payer at a definitive flat rate of 20% (in the majority of the income received).
Local income taxes
Municipality tax varies according to each municipality. For Maputo city, the tax is MZN 510 for 2023. In general, employers deduct the tax to each employee and delivers to the tax authorities.