Mozambique

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:

* 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

The municipal tax rate varies depending on the municipality. In the case of Maputo city, the tax amount is MZN 510 for the year 2024. Typically, employers withhold the tax from each employee and remit it to the tax authorities.