Mozambique's Cabinet has approved a package of tax reforms aimed at enhancing fiscal clarity and broadening compliance. The reforms, approved on 29 September 2026, amend corporate income tax, VAT, personal income tax, and small-taxpayer rules. The changes aim to provide clearer deadlines, formalities, and administrative procedures, defining taxpayer duties and supporting obligations. This move is expected to lead to more consistent application of Mozambique's tax laws.
The tax reforms update regulations covering Corporate Income Tax, Value-Added Tax, and Personal Income Tax. They also introduce a revised simplified regime for small taxpayers. The measures provide procedures and administrative mechanisms for implementing reforms enacted by Laws No. 11/2025 and 12/2025 of 29 December. This clarity will help companies assessing market entry, expansion, or restructuring, reducing the risk of inconsistent application across different taxpayer categories.
The regulations also include amendments to the VAT regulation, implementing Law No. 10/2025 of 29 December. The VAT package seeks to modernise consumption taxation and strengthen revenue collection, including provisions covering the digital economy. This focus is crucial as digital services expand rapidly across African markets, allowing investors to assess their compliance exposure with greater confidence.
A revised Simplified Tax for Small Taxpayers regulation has been approved, repealing Decree No. 14/2009 of 14 April. The new regime applies to small-scale activities across several sectors, including agriculture, livestock, fishing, small-scale industry, and commerce. The regulation sets clear procedures for small operators across Mozambique, aligning the simplified regime with changes introduced by Law No. 9/2025 of 29 December.
The reforms bring smaller operators into a more clearly defined compliance system, widening the formal tax base. This move matters for revenue mobilisation and the Mozambique Mutual Guarantee Fund, which supports micro, small, and medium-sized enterprises. A clearer tax framework strengthens the case for formalisation among smaller businesses.
The practical effect of the tax reforms depends on implementation. Investors will watch the detailed procedures, filing requirements, and guidance issued by the tax authorities. Businesses will assess how the changes affect operating costs and tax reporting, while digital companies will focus on the treatment of online services and related obligations.
The tax reforms signal a structural push for fiscal clarity and broader compliance in Mozambique. The changes provide greater clarity around compliance and planning obligations for investors, improving transparency between the tax authority and taxpayers. The reforms aim to ensure consistent implementation of tax laws, reducing uncertainty and risks for businesses operating in Mozambique.
Key points
- Mozambique's tax reforms aim to enhance fiscal clarity and compliance.
- The reforms update regulations covering Corporate Income Tax, Value-Added Tax, and Personal Income Tax.
- A revised simplified regime for small taxpayers has been introduced to bring smaller operators into a more clearly defined compliance system.
