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Mozambique tax review under discussion

Maputo, Mozambique — 22 November 2012 – The government of Mozambique is continuing with discussions described as ‘internal’ regarding potential changes to its capital gains tax regime “’ a development which would be of great significance to foreign mining companies.

Revealing this in responding to questions at the Coaltrans Mozambique conference, deputy mines minister, Abdul Razak Noormahomed, said: “There is an internal discussion on capital gains. At the moment, the 2007 law is being applied,” reports Miningmx.

“The aim is a fair share of benefit for the country as well as for investors,” Noormahomed explained.

Later on the sidelines of the conference, he went on to say: “I can’t tell you what will happen with the discussions, but there are no immediate plans to change it”. But he added: “It depends what you mean by immediate.”

The question of a new corporate gains tax was raised at the time when UK-listed gas exploration firm, Cove Energy, was bought by Thai energy company, PTT, for US$1.8 billion earlier this year.

At the time Mozambican mines minister Esperanca Bias said: “We are monitoring the negotiations, and what we have said is that we are going to put in place a capital gains tax.” The 2007 law on tax was eventually applied in which the tax was the same as corporate income tax.

Source: Miningmx. For more information, click here.