HomeBase MetalsFuture Mozambique projects will pay 32% corporate tax

Future Mozambique projects will pay 32% corporate tax

Mozambique prime
minister Alberto
Maputo, Mozambique — 28 November 2012 – New mining and oil exploration projects in Mozambique will have fewer incentives than those currently being implemented, prime minister Alberto Vaquina announced in the country’s parliament.

According to the prime minister, cited by Macauhub News Agency, the new projects would have to pay corporate tax (IRPC), at a rate of 32%, although so far companies have been exempt from paying tax.

The only incentives that large projects currently enjoy are those outlined in Law 13/2007, of 27 June, which only specifies exemption, for a five-year period, on import rights and use of trucks and other machinery used for surveying.

Responding to questions from members of parliament, Vaquina said that large projects would have to contribute to State revenues, and re-stated that the change to tax conditions agreed with the projects currently under execution should not be hurried.

“Before we do anything we have to check the legal framework for the changes and assess the possible impact of these measures on Mozambique’s international image, as well as on the efforts the government has been making to create more jobs,” the prime minister added.

Source: Macauhub News Agency. For more information, click here.