Mozambique (MZ)

Portuguese-speaking East African country with 2,500 km of Indian Ocean coastline, extraordinary marine parks, growing LNG energy sector, and low cost of living for expats in Maputo.

Capital: Maputo

Region: Africa

Language: Portuguese

Currency: MZN (MT)

Cost of living: Very affordable (index 20)

Emergency: 119

Tax & Payslip Guide

Understanding your taxes in Mozambique — tax year Calendar year: 1 January – 31 December.

📅

Tax Year

Calendar year: 1 January – 31 December

⏰

Filing Deadline

IRPS annual return: 31 March for the previous calendar year. Employers submit monthly IRPS withholding declarations by the 20th of the following month. IRPC: annual return by 31 May. IVA: monthly return by the 20th of the following month. INSS: monthly declaration by the 15th.

🧾

VAT (Standard)

17%

📊 Income Tax Brackets

Income from	Income to	Rate	Notes
0	42,000	10%	Annual taxable income up to MT 42,000. Personal allowance (deduction) of MT 31,500 effectively means very low earners pay minimal IRPS.
42,001	168,000	15%	Annual income MT 42,001 – 168,000.
168,001	504,000	20%	Annual income MT 168,001 – 504,000.
504,001	1,512,000	25%	Annual income MT 504,001 – 1,512,000.
1,512,001	∞	32%	Annual income above MT 1,512,000. Top rate applies to most professional expats on international packages. MT 1,512,000/year ≈ MT 126,000/month ≈ USD 1,950/month (2026 rate).

🏛️ Social Contributions

INSS (Instituto Nacional de Segurança Social)

Employee: 4% of gross salary

Employer: 4% of gross salary

Both employee and employer pay 4% of gross salary. No earnings ceiling. Funds pension, work injury, maternity, and sickness benefits. Employer submits monthly INSS declarations. Self-employed persons contribute voluntarily at 8% total. The only bilateral totalization agreement is with Portugal.

🛒 VAT Rates

17%

Standard

5% (basic food items, agricultural inputs, water and sanitation services)

Reduced

Exempt: basic food staples (bread, rice), fuel, pharmaceuticals, financial services, educational services, exports

Super reduced

IVA (Imposto sobre o Valor Acrescentado) registration required for businesses with annual turnover above MT 2,500,000. Monthly IVA returns due by the 20th of the following month. E-fatura (electronic invoicing) mandatory for businesses above MT 1,000,000 turnover from 2026.

🧾 Sample Payslip Decoder

Gross Salary MT 80,000/month (approx USD 1,240 at 2026 rates)

Gross salary + MT 80,000

IRPS income tax — progressive rate on MT 960,000 annual income - -MT 12,850

INSS employee contribution (4% of gross) - -MT 3,200

Net Salary (Take-home) Approx. MT 63,950/month

Illustrative for 2026. Annual gross MT 960,000. IRPS calculated using progressive IRPS bands: 0% on first MT 42,000 (MT 0); 10% on MT 42,001–168,000 = MT 12,600; 15% on MT 168,001–504,000 = MT 50,400; 20% on MT 504,001–960,000 = MT 91,200; total annual IRPS = MT 154,200 → MT 12,850/month. INSS employee contribution: 4% × MT 80,000 = MT 3,200. Net = MT 80,000 − MT 12,850 − MT 3,200 = MT 63,950. Employer also contributes 4% INSS (MT 3,200/month) on top of gross — total employer cost MT 83,200/month. Employer-provided housing or vehicle allowances are typically added to taxable income. Many senior expats are paid partly in USD by multinational employers under separate package agreements.

🌍 Special Expat Tax Rules

IRPC (corporate tax) is 32% on net profit. Small businesses with turnover under MT 2,500,000 may use the simplified ISPC regime (3% of gross turnover quarterly). Tax residency: 180+ days in Mozambique in a calendar year triggers resident status — taxed on Mozambican-source income only (no worldwide taxation). Non-residents pay flat 20% withholding on Mozambican-source income. Key points for expats: (1) Employer-provided housing, vehicles, and allowances may be taxable benefits. (2) The double taxation treaty with Portugal is the most relevant for EU expats. (3) Other DTA partners: UAE, India, Macau, Mauritius, South Africa. (4) Oil and gas workers under Petroleum Production Agreements may have different arrangements.

📋 Double Tax Treaties

Mozambique has double taxation agreements with Portugal (most relevant for EU expats), UAE, India, Macau, Mauritius, and South Africa. Most other countries lack a DTA — expats should check their home-country rules to avoid double taxation.

Autoridade Tributária de Moçambique (ATM)

https://www.at.gov.mz

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