The Mozambican government has introduced changes to its tax regulations to enhance efficiency and compliance. The Council of Ministers approved the changes to the regulations of the Corporate Income Tax (IRPC), Value Added Tax (IVA), and Personal Income Tax (IRPS) codes. These changes aim to improve the implementation of tax legislation and strengthen the country's tax system. The reforms include defining deadlines, formalities, and administrative mechanisms to ensure correct, uniform, and efficient implementation of tax legislation.
The changes to the IRPC code are part of the reforms introduced by Law No. 12/2005, which altered the IRPC code in the Mozambican tax system. The reforms aim to define procedures to ensure correct and efficient implementation of tax legislation. They also seek to strengthen legal security, predictability, and transparency in the tax relationship between the Tax Administration and taxpayers. The changes will contribute to a more efficient tax system and improve compliance.
The Council of Ministers also approved the Simplified Tax for Small Contributors (ISPC) regulation, which repeals Decree No. 14/2009. The ISPC regulation establishes mechanisms and procedures for small contributors operating in Mozambique. It covers activities in the forestry, fishing, livestock, agricultural, industrial, and commercial sectors, including artisanal activities, service provision, and small-scale trade. The regulation aims to adapt the regime to changes introduced by Law No. 9/2025.
The government also approved changes to the IVA code, which include amendments to articles 3, 7, 8, 15, 16-A, 18, 21, 23, 28, 36, and 37 of the IVA code regulation. These changes are part of the reforms introduced by Law No. 10/2025, which altered the IVA code in the Mozambican tax system. The reforms aim to modernize the tax system, expand the tax base, and strengthen revenue collection.
The changes to the IVA code include provisions related to the digital economy, aiming to provide greater legal security and predictability for taxpayers. The government also approved changes to the IRPS regulation, which are part of the reforms introduced by Law No. 11/2025. The new instrument aims to contribute to the standardization, modernization, and greater efficiency of tax legislation.
In addition to the tax regulations, the Council of Ministers approved the Voluntariado Law regulation, which repeals Decree No. 52/2017. The new regulation establishes mechanisms for accrediting volunteer work, aiming to provide greater speed, flexibility, and efficiency to processes. The regulation applies to citizens and private entities promoting volunteer work in Mozambique.
The changes to the tax regulations and the approval of the Voluntariado Law regulation demonstrate the government's efforts to improve the business environment and promote economic growth. The reforms aim to strengthen the tax system, improve compliance, and provide greater legal security and predictability for taxpayers. The government will continue to implement measures to enhance the efficiency and effectiveness of the tax system.
Key points
- The Mozambican government has introduced changes to its tax regulations to improve tax efficiency and compliance.
- The changes include amendments to the IRPC, IVA, and IRPS codes, as well as the approval of the Simplified Tax for Small Contributors regulation.
- The reforms aim to modernize the tax system, expand the tax base, and strengthen revenue collection.
