Mozambique

Mozambique

Introduces fiscal measures to promote growth and improve the business environment

09 Aug 2022

On 9 August 2022, the Government of Mozambique announced an Economic Acceleration Package which includes fiscal and economic stimulus measures and measures to improve the business environment, transparency and governance. Fiscal incentive measures include: - Reducing the corporate tax rate for agriculture, aquaculture and urban transport from 32% to 10%; - Reducing the withholding tax rate from 20% to 10% on payments to foreign entities providing services to national agricultural companies; - Eliminating withholding tax on interest from external financing for agricultural projects; and creating, within the next three years, tax incentives for new investments in the agriculture, agro-processing, manufacturing, tourism and urban transport sectors through accelerated depreciation (for half of the useful life) for investments made in facilities and equipment related to the company’s production activity, provided it creates at least 20 permanent jobs.