Mozambique

Mozambique

Launches an Economic Acceleration Stimulus Package

09 Aug 2022

On 9 August 2022, the Government of Mozambique announced the launch of the Economic Acceleration Stimulus Package. The measures in the package include the following among others: • VAT exemption for imports on the productive sectors of agriculture and electrification • Lower the corporate Income tax rate from 32% to 10%, in the agriculture, aquaculture and urban transport sectors • Tax incentives will cover both new private initiatives and the expansion of current investments, which extend installed production capacity in the sectors of agriculture, agro-processing, manufacturing, tourism and urban transport. The tax incentives consist in the acceleration of the amortizations of paid-in capital to half the period established in the current tax code, for investments made in facilities and equipment related to the productive activity of companies, provided that they result in the creation of at least 20 new permanent jobs. • Simplification of capital repatriation procedures • Simplification of administrative processes affecting business