Angola & Mozambique accounting & tax

  1. Capital gains in Mozambique is regarded as ordinary income and is taxed at the normal corporate tax rate of 32%;
  2. Corporate tax in Mozambique is imposed at a standard rate of 32%. All legal entities must register for tax with the Mozambique Tax Authority and file annual returns by the 31st of May following the end of the tax year;
  3. A 10% withholding tax is applicable to payments made to non-resident companies for services including i) construction ii) transport and telecommunication iii) electricity distribution;
  4. The Value Added Tax (VAT) is levied at a standard rate of 17%. Certain corporate services including banking, health and education are however exempted from VAT. Companies must register for VAT and submit monthly returns;
  5. A 20% withholding tax is applicable on i) dividends ii) interests and iii) royalties paid to both resident and non-resident companies. The rate may however be reduced for non-resident companies where a tax treaty is applicable;
  6. Employers in Mozambique must submit a monthly social security contribution of 4% of their employees’ gross salary to the National Institute of Social Security (INSS);
  7. Business tax losses in Mozambique can be carried forward for up to 5 years. Carryback of losses is however not allowed
  8. A 20% withholding tax is applicable on technical services fees paid to non-resident company unless reduced where a tax treaty applies;
  9. Other taxes in Mozambique include i) real property tax of 0.4% for residences and 0.7% for offices ii) 0.4% stamp duty applicable of the transfer of shares iii) 2% real property transfer tax;
  10. The Republic of Mozambique is signatory to 9 double tax treaties with different countries including South Africa, Mauritius, Portugal, United Arab Emirates, among others;
  1. Corporate tax in Angola is levied at a rate of 35% on company’s net profits. This rate is however reduced to i) 20% for agricultural, forestry and livestock activities and ii) 30% for real estate activities. Annual returns must be filed before 31st May every year, failure to which a penalty equal to double the tax payable is imposed;
  2. The standard VAT rate levied on all goods and services in Angola is 10%. Filing of VAT is done monthly and payment is due by the last business day of the following month;
  3. Capital gains in Angola are taxed as business income and therefore subject to corporate tax;
  4. A company’s losses are allowed a rollover relief of three years. However, carry back of losses is prohibited;
  5. Capital duty is paid on initial capital of a company at the rate of 0.5%. Additional stamp dutis are levied at 1% on monthly turnover of a company;
  6. Employers must remit social security contributions to the authorities on all salaries at the rate of 8%. There is no payroll tax;
  7. Non-resident companies in Angola are subject to i) 10% withholding tax on dividends, ii) 15% withholding tax on interest and iii) 10% withholding tax on royalties. There is no withholding tax on branch remittances;
  8. The rate of tax payable on transfer of land or buildings is 10%, paid by the purchaser;
  9. Angola has not yet signed any tax treaty to eliminate double international taxation;

How can we assist you

‣ documenting and implementing accounting procedures

‣ preparing financial accounting records

‣ prepare tax declarations and deliver to tax authorities

‣ VAT and Corporate Tax administrative support