Amendments to the personal income tax code regulation

In order to harmonize the Personal Income Tax Code with the process of reform of the Mozambican tax system, the Mozambican Government, through Decree No. 51/2018 of 31 August, amended the Regulation of the Personal Income Tax Code.

According to the changes introduced by the aforementioned decree, income declarations for all categories of income are to be delivered between 1 January and 30 April, except for income from employment (first category) and those subject to withholding tax.

The diploma also amended the deadline for the settlement of Personal Income Tax, which will be made until April 30 of the year following that to which they relate to income, if not included in the second category.

It should also be noted that the provision exempting the submission of income tax returns to taxable persons who, in the year to which the tax was paid, had only received income taxed by the withholding taxes provided for in the Personal Income Tax Code.

Also worthy of note is the collaboration of Municipalities with the Tax Authority in the collection of Personal Income Tax on the income derived from real estate in those located.

Also worthy of note in the diploma is in respect to the collaboration of Municipalities with the Tax Authority in the collection of Personal Income Tax on the income derived from real estate in those located. The Municipalities are now required to inform the Tax Authority of the leased or similar properties located in the area of ​​jurisdiction of the respective municipality, and this should be reported to the Tax Administration through an appropriate form.

As a counterpart to its collaboration with the Tax Authorities, 10% of IRPS income in the fourth category is allocated to Municipalities. This percentage refers to that which results exclusively from the actual and direct participation of Municipalities in the provision of information for the determination of the taxable income.

The revenue collected to be attributed to the municipalities, remains as long as the terms of the respective leases of proprieties, which serve as the basis of the collaboration with the Tax Authorities remain in force.