This article provides a concise breakdown of individual income tax rules in Mozambique for 2025, including progressive tax rates, relevant surtaxes, and key points international professionals need to understand. The details below are sourced from currently available data on Mozambique’s tax regulations.
Overview of Mozambique Individual Income Tax Framework
Mozambique applies a progressive income tax system, where rates increase based on an individual’s income. All income earned by tax residents is generally subject to personal income tax (IRPS), while non-residents face separate withholding tax rules. The Mozambican metical (MZN) is the local currency used for tax purposes.
Progressive Income Tax Brackets in Mozambique (2025)
The following table details the income tax brackets for residents, as set for the 2025 tax year. Each bracket lists the applicable annual taxable income range and corresponding percentage rate. For USD comparisons, an approximate exchange rate of 1 USD = 63 MZN is used.
| Annual Taxable Income (MZN) | Equivalent (USD) | Marginal Tax Rate (%) |
|---|---|---|
| 0 – 42,000 | $0 – $667 | 10% |
| 42,001 – 168,000 | $668 – $2,667 | 15% |
| 168,001 – 504,000 | $2,668 – $8,000 | 20% |
| 504,001 – 1,512,000 | $8,001 – $24,000 | 25% |
| 1,512,001 and above | $24,001 and above | 32% |
Note: Mozambique applies these progressive rates on an annual basis. The system is structured to increase the tax burden gradually with higher earned income, consistent with many moderate tax jurisdictions.
Main Surtaxes and Withholding Taxes
In addition to the standard individual income tax, several surtaxes and indirect taxes may apply depending on income source, residency status, or types of transactions. Here’s a summary of key additional levies for 2025:
| Surtax/Levy | Rate (%) | Condition / Applicability |
|---|---|---|
| Withholding Tax (Non-residents) | 20% | Flat rate on most Mozambican-source income for non-residents |
| Stamp Duties | 0.03% – 50% | On specified documents and transactions |
| Value-Added Tax (VAT) | 16% | On most goods and services (separate from income tax) |
| Property Transfer Tax (SISA) | 2% | On real estate transfers |
Assessment Basis and Applicability
Personal income tax in Mozambique is assessed primarily on total income, including salaries, business profits, rental income, and some investment returns. Official data for certain aspects such as minimum or maximum holding periods is currently not publicly available; if relevant for your situation, consult official Mozambican resources or qualified local professionals for updates.
Special Notes for Non-Residents
Non-residents are typically subject to a flat 20% withholding tax on most Mozambican-source income, rather than the progressive brackets detailed for residents. International taxpayers should also be mindful of Mozambique’s approach to cross-border payments and consult the main page of Mozambique’s government portal for official details: https://www.portaldogoverno.gov.mz/.
Pro Tips for Managing Individual Income Tax in Mozambique
- Maintain Comprehensive Records: Ensure all sources of Mozambican income and related documentation are well-organized, as tax authorities may require original records to verify taxable income.
- Understand VAT and Other Indirect Taxes: If you are self-employed or run a business, confirm when VAT applies, as it is levied separately from income tax and can affect your total tax cost.
- Review Residency Status Regularly: Residency status has a major impact on your tax burden; staying informed on the criteria can help avoid unexpected withholding rates, especially if your stay or business ties in Mozambique are temporary.
- Consult the Latest Government Guidance: Mozambique’s tax laws can change, so always refer to the official Mozambique Government Portal for regulatory updates: https://www.portaldogoverno.gov.mz/.
Key Takeaways for Mozambique Income Tax (2025)
Mozambique applies a progressive income tax regime for residents in 2025 with rates ranging from 10% to 32%, depending on income level. Non-residents face a distinct flat 20% withholding tax on most income from Mozambican sources. Additional levies such as VAT, stamp duties, and property transfer tax may also apply depending on circumstances. As with any jurisdiction, careful record-keeping and regular review of official guidance are essential for managing your compliance and understanding your overall tax position in Mozambique.