Individual - Taxes on personal income

Last reviewed - 02 August 2023

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)**
Over Not Over
0 42,000 10  
42,000 168,000 15 2,100
168,000 504,000 20 10,500
504,000 1,512,000 25 37,500
1,512,000   32 141,540

* 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.