Revises mining regime, reducing incentives and increasing monitoring
30 Dec 2022
On 30 December 2022, the Government of Mozambique gazetted Decree No. 76/2022, which introduced changes to the Regulation of the Specific Regime of Taxation and Tax Benefits for Mining Activities. Significant amendments include:
• Repealed the 50% reduced rate of Mining Production Tax (“MPT”) for mineral products used for the development of local industry;
• Introduced a requirement to provide the specifications of ore extracted along with a monthly production report when submitting MPT returns;
• Required all sales or large disposals of mining products to be made through auctions or via the free market to be communicated to the Tax Administration within 30 days before the expected date of sale;
• Required that entities carrying out mining activities under a concession contract have their financial statements certified by an independent authorised auditor;
• Allowed operators of mining title to have their accounting records in United States Dollars (USD) upon approval of the Minister of Finance;
• Required the reference exchange rate published by the Mozambique Central Bank to be used for the conversion of accounting records from local currency to USD; and
• Required taxpayers who hold more than one mining title to create separate legal entities and have separate tax numbers and accounting records for each prospecting and research license, mining concession and mining certificate.
The law became effective on 1 January 2023.
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Type:
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Treatment and operation (Capital transfer and FOREX)
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Promotion and facilitation (Investment incentives)
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Industry:
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Primary (Mining and quarrying)
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Sources:
