Mozambique Income Tax

Section 1 -- Quick Reference

Section 1 -- Quick Reference

Field	Value
Country	Mozambique (República de Moçambique)
Tax	IRPS -- Imposto sobre o Rendimento das Pessoas Singulares (personal income tax)
Currency	Metical (MZN / MT) only
Tax year	Calendar year (1 January -- 31 December)
Primary legislation	Código do IRPS (CIRPS); reformed by Law No. 11/2025 of 29 December 2025 (in force 1 Jan 2026)
Tax authority	Autoridade Tributária de Moçambique (AT) -- at.gov.mz
Social security	Instituto Nacional de Segurança Social (INSS) -- inss.gov.mz
Annual return form	Modelo 10 (declaração anual de rendimentos)
Filing portal	eDeclaração -- edeclaracao.at.gov.mz
Filing deadline	31 March (employment-only) / 30 April (all other cases) of following year
Validated by	Pending -- requires sign-off by a Mozambican tax professional
Validation date	Pending
Skill version	0.1

Regime note. The 2025 tax year and earlier follow the long-standing CIRPS. Law No. 11/2025 (29 Dec 2025) enters into force 1 January 2026: it does not change the rate brackets but redefines residency, abolishes simplified/exemption regimes, ends the employee filing waiver, and adds digital-service withholding. See Section 11. Source: DLA Piper Africa / SAL & Caldeira — https://www.dlapiperafrica.com/en/mozambique/insights/2026/Changes-to-the-Personal-Income-Tax-Code

IRPS Rate Brackets (Resident -- 2025, continuing under 2026 reform)

IRPS Rate Brackets (Resident -- 2025, continuing under 2026 reform) (PwC Worldwide Tax Summaries — https://taxsummaries.pwc.com/mozambique/individual/taxes-on-personal-income (last reviewed 04 Mar 2026); AT IRPS rate page — https://www.at.gov.mz/por/Comercio-Internacional/Procedimento-Fiscais/Taxas-IRPS (AT page returned a TLS error to the fetcher; PwC corroborates the same schedule).)

Annual taxable income (MZN)	Rate	Deductible amount (parcela a abater, MZN)	Cumulative tax at bracket top (MZN)
0 -- 42,000	10%	0	4,200
42,000 -- 168,000	15%	2,100	23,100
168,000 -- 504,000	20%	10,500	90,300
504,000 -- 1,512,000	25%	37,500	340,500
Over 1,512,000	32%	141,540	--

• IRPS calculation mechanism — tax = (annual income × bracket rate) − deductible amount (parcela a abater) for the bracket (PwC Worldwide Tax Summaries — https://taxsummaries.pwc.com/mozambique/individual/taxes-on-personal-income)

[RESEARCH GAP — reviewer to confirm] The published deductible amounts for the 25% bracket (MZN 37,500) and 32% bracket (MZN 141,540) do not produce perfectly continuous brackets (strict continuity would require 35,700 and 143,340 respectively). The published "parcela a abater" values are the figures AT applies and are used in this skill as authoritative; reviewer to verify against the official CIRPS schedule. The cumulative-tax column above is computed using the published deductible amounts.

• Non-residents withholding rate — 20% percent (flat withholding on Mozambique-source income (including employment)) (PwC — https://taxsummaries.pwc.com/mozambique/individual/taxes-on-personal-income)

INSS Social Security Contributions

INSS Social Security Contributions (PwC — https://taxsummaries.pwc.com/mozambique/individual/other-taxes ; INSS — https://www.inss.gov.mz/duvidas/)

Party	Rate of monthly salary
Employee	3%
Employer	4%
Total	7%

• INSS base — Base: all salaries, wages, regular bonuses and other regular income; meal subsidy excluded. No contribution ceiling identified from authoritative sources (state explicitly: no ceiling found). Employer withholds the employee's 3% and remits the full 7%. (PwC — https://taxsummaries.pwc.com/mozambique/individual/other-taxes ; INSS — https://www.inss.gov.mz/duvidas/)

Arithmetic check: employee 3% + employer 4% = total 7%. ✓

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown residency	STOP -- residency determines whole-scale vs 20% flat; do not compute
Unknown income category (1st vs 2nd)	STOP -- ask before classifying
Unknown whether item is "regular income" for INSS	Treat as INSIDE the INSS base (only meal subsidy is confirmed excluded)
Unknown number of dependents	0 dependents (no dependent deduction)
Unknown ISPC vs organized accounting	Organized accounting (ISPC abolished from 2026 — see Section 5)
Unknown expense business-use % (2nd category)	0% deduction
Unknown INSS payment deadline	Use the earlier INSS-site date (10th of following month) — see Section 6

Section 2 -- Required Inputs and Refusal Catalogue

Required Inputs

Minimum viable -- residency status (resident / non-resident), income category (1st = employment, 2nd = business/self-employment), and either a payroll summary (employment) or a bank statement for the full tax year (self-employment), plus number of dependents.

Recommended -- monthly PAYE withholding records, INSS contribution records, all invoices/receipts (2nd category), prior-year Modelo 10 or assessment.

Ideal -- complete income and expenditure account with organized accounting, advance-payment (pagamentos por conta) confirmations, double-taxation relief documentation.

Refusal if minimum is missing -- SOFT WARN. No income evidence at all = hard stop. Bank statement without invoices (2nd category) = proceed with reviewer warning: "This computation was produced from bank statement alone. The reviewer must verify that all deductions are supported by organized-accounting records."

Refusal Catalogue

• R-MZ-1 -- Residency unknown — Residency determines whether the progressive 10%–32% scale or the flat 20% non-resident rate applies, and Law 11/2025 redefined residency from 2026. This skill cannot compute IRPS without residency status. Confirm before proceeding.
• R-MZ-2 -- Companies / IRPC — This skill covers individuals (IRPS) only. Corporate income tax (IRPC) is a separate regime. Escalate to a Mozambican tax professional.
• R-MZ-3 -- Non-resident complex source rules — Non-resident source-of-income and treaty questions require specialised analysis. Out of scope. Escalate to a Mozambican tax professional.
• R-MZ-4 -- Capital gains — Capital gains under the new autonomous regime (Art. 54-A, from 2026) require specialised analysis. Escalate to a Mozambican tax professional.
• R-MZ-5 -- Arrears / enforcement — Client has outstanding tax arrears or is subject to AT enforcement. Default interest (juros de mora) accrues immediately and statutory fines apply. Do not advise. Escalate immediately.
• R-MZ-6 -- VAT (IVA) requested — This skill covers IRPS only. Mozambique VAT (IVA) is a separate skill.
• R-MZ-7 -- 2026 mechanics not yet regulated — Law 11/2025 grants the government 180 days to issue implementing regulations. Some 2026 mechanics (e.g. survival of personal/dependent deductions) are pending. Flag and escalate for any 2026 computation that depends on unregulated detail.

Section 3 -- Transaction Pattern Library

Deterministic pre-classifier. Match by case-insensitive substring on the counterparty/description as it appears on the bank statement (Portuguese terms common in MZ). Most specific match wins. If none match, fall through to Tier 1 rules (Section 5). Terms are in Portuguese as they appear in Mozambican statements.

3.1 Income Patterns (Credits)

3.1 Income Patterns (Credits)

Pattern	Category	Treatment	Notes
SALÁRIO, ORDENADO, VENCIMENTO, REMUNERAÇÃO	1st category (employment)	PAYE income	Subject to monthly PAYE 0%–32%
SUBSÍDIO (regular)	1st category	Employment income	Regular subsidies in IRPS base; meal subsidy excluded from INSS base
HONORÁRIOS, PRESTAÇÃO DE SERVIÇOS, FACTURA, RECIBO	2nd category (business/professional)	Self-employment income	Organized accounting required
COMISSÃO, COMISSÕES	2nd category	Commission income	E-money agent commissions: 10% final WHT from 2026 (Section 11)
RENDA RECEBIDA, ARRENDAMENTO	Property/rental income	Same scale	Rental income on the IRPS scale
JUROS RECEBIDOS, JUROS	Investment income	Same scale	Interest income
DIVIDENDOS	Investment income	Same scale	Dividend income
REEMBOLSO IMPOSTO, RESTITUIÇÃO AT	EXCLUDE	Not income	Tax refund from prior year

3.2 Expense Patterns (Debits) -- 2nd Category, Fully Deductible

3.2 Expense Patterns (Debits) -- 2nd Category, Fully Deductible

Pattern	Category	Treatment	Notes
RENDA ESCRITÓRIO, ARRENDAMENTO COMERCIAL	Office rent	Deductible	Dedicated business premises
CONTABILISTA, CONTABILIDADE, TOC	Accountancy fees	Deductible	Organized accounting is mandatory (2nd category)
ADVOGADO, JURÍDICO, NOTÁRIO (business)	Legal fees	Deductible	Must be business-related
MATERIAL ESCRITÓRIO, PAPELARIA	Office supplies	Deductible
PUBLICIDADE, MARKETING, GOOGLE ADS, META	Marketing/advertising	Deductible
COMISSÃO BANCÁRIA, ENCARGOS, MANUTENÇÃO CONTA	Bank charges	Deductible	Business account only
FORMAÇÃO, CURSO, SEMINÁRIO	Training	Deductible	Must relate to current activity
SOFTWARE, ASSINATURA, MICROSOFT, GOOGLE WORKSPACE	Software subscription	Deductible	Recurring operating expense

3.3 Expense Patterns (Debits) -- Mixed Use (Apportion, Tier 2)

3.3 Expense Patterns (Debits) -- Mixed Use (Apportion, Tier 2)

Pattern	Category	Tier	Notes
EDM, ELECTRICIDADE DE MOÇAMBIQUE	Electricity	T2 if home office	100% if dedicated office; proportional if home
ÁGUA, FIPAG	Water	T2 if home office	Apportion
TMCEL, VODACOM, MOVITEL	Phone/telecoms	T2	Business-use portion only; default 0% if mixed
COMBUSTÍVEL, GASOLINA, GASÓLEO, GALP, PUMA, TOTAL	Vehicle fuel	T2	Business % only; requires mileage log

3.4 Expense Patterns (Debits) -- NOT Deductible

3.4 Expense Patterns (Debits) -- NOT Deductible

Pattern	Category	Treatment	Notes
RESTAURANTE, ALMOÇO, JANTAR, ENTRETENIMENTO	Entertainment	NOT deductible	Personal/entertainment
SUPERMERCADO, SHOPRITE, GROCERIES, PESSOAL	Personal expenses	NOT deductible	Private living costs
MULTA, COIMA, PENALIDADE	Fines/penalties	NOT deductible	Public policy
IRPS, PAGAMENTO IMPOSTO, AT PAGAMENTO	Tax payments	NOT deductible	Income tax cannot reduce income
LEVANTAMENTO, ATM (personal), RETIRADA	Drawings	NOT deductible	Not an expense

3.5 Statutory Items (Special Boxes, Not Box 2)

3.5 Statutory Items (Special Boxes, Not Box 2)

Pattern	Treatment	Notes
INSS, SEGURANÇA SOCIAL	INSS contribution	Employer remits 7% (3% employee + 4% employer)
PAGAMENTO POR CONTA, PPC	Advance payment	Credit against final IRPS, not an expense
TRANSFERÊNCIA INTERNA, CONTA PRÓPRIA	EXCLUDE	Own-account transfer
EMPRÉSTIMO, REEMBOLSO EMPRÉSTIMO	EXCLUDE	Loan principal movement

3.6 Mozambican Banks -- Statement Format Reference

3.6 Mozambican Banks -- Statement Format Reference

Bank	Common Patterns	Notes
BCI (Banco Comercial e de Investimentos)	TRANSFERÊNCIA, DÉBITO DIRECTO, LEVANTAMENTO	PDF/CSV; date DD/MM/YYYY
Millennium BIM	TRF, DD, PAGAMENTO, COMPRA POS	PDF/CSV; merchant in description
Standard Bank Moçambique	TRANSFER, DEBIT ORDER, POS	PDF; English/Portuguese mix
Absa Bank Moçambique	TRANSFER, DEBIT ORDER, FEE	PDF/CSV
Banco Único / Nedbank	TRANSFERÊNCIA, ENCARGOS	PDF

Section 4 -- Worked Examples

All amounts in MZN. IRPS computed as: annual tax = annual income × bracket rate − parcela a abater, then subtract personal/dependent collection deductions (Section 2/Section 5). Figures recomputed end-to-end.

Example 1 -- Resident employee, mid-range salary

Input line: 25/03/2025 ; BCI TRANSFERÊNCIA ; EMPRESA XYZ LDA ; SALÁRIO MARÇO ; +50,000.00 ; MZN

Reasoning: Monthly gross salary MZN 50,000 → annualised MZN 600,000 (1st category). Falls in the 504,000–1,512,000 (25%) bracket. Gross IRPS = 600,000 × 25% − 37,500 = 150,000 − 37,500 = 112,500. Less personal deduction (single/married taxpayer) MZN 1,800 → 112,500 − 1,800 = 110,700 annual IRPS. INSS employee contribution = 3% × 50,000 = MZN 1,500/month.

Classification: 1st category. Annual gross IRPS MZN 112,500; after MZN 1,800 personal deduction, MZN 110,700. INSS employee MZN 1,500/month. (Personal deduction per PwC — https://taxsummaries.pwc.com/mozambique/individual/deductions.)

Example 2 -- Resident employee, lower salary, two dependents

Input line: 25/03/2025 ; MILLENNIUM BIM ; ORGANIZAÇÃO ABC ; ORDENADO ; +14,000.00 ; MZN

Reasoning: Gross salary MZN 14,000/month → annual MZN 168,000 (1st category). At the top of the 42,000–168,000 (15%) bracket. Gross IRPS = 168,000 × 15% − 2,100 = 25,200 − 2,100 = 23,100. Less personal deduction MZN 1,800; less 2-dependent deduction MZN 900 → 23,100 − 1,800 − 900 = 20,400 annual IRPS. INSS employee = 3% × 14,000 = MZN 420/month.

Classification: 1st category. Annual IRPS MZN 20,400 after deductions. INSS employee MZN 420/month.

Example 3 -- Non-resident consultant

Input line: 10/04/2025 ; STANDARD BANK ; CLIENTE INTERNACIONAL ; HONORÁRIOS ; +200,000.00 ; MZN

Reasoning: Payment to a non-resident for Mozambique-source services. Non-residents are taxed at a flat 20% withholding on MZ-source income (PwC). The progressive scale and personal deductions do NOT apply. IRPS withheld = 200,000 × 20% = 40,000.

Classification: Non-resident, flat 20%. IRPS MZN 40,000. No personal deductions.

Example 4 -- Self-employed (2nd category), deductible expense

Input line: 05/05/2025 ; BCI DÉBITO ; CONTABILISTA LDA ; HONORÁRIOS CONTABILIDADE ; -8,000.00 ; MZN

Reasoning: Accountancy fee for a 2nd-category (business/professional) taxpayer with organized accounting (mandatory). Fully deductible against business income.

Classification: 2nd category deductible expense MZN 8,000.

Example 5 -- INSS contribution remittance

Input line: 08/04/2025 ; MILLENNIUM BIM ; INSS ; CONTRIBUIÇÃO MARÇO ; -3,500.00 ; MZN

Reasoning: For a MZN 50,000 monthly payroll: total INSS = 7% × 50,000 = MZN 3,500 (employee 3% = 1,500 + employer 4% = 2,000). Employer remits the full 7%. Per the INSS site the remittance window runs from the 20th of the current month to the 10th of the following month; PwC states the 15th — flag the discrepancy (Section 6).

Classification: INSS remittance MZN 3,500 (1,500 employee + 2,000 employer). Statutory, not a Box-2 business expense.

Example 6 -- Internal transfer (exclude)

Input line: 15/05/2025 ; BCI TRANSFERÊNCIA ; CONTA PRÓPRIA - POUPANÇA ; ; -20,000.00 ; MZN

Reasoning: Transfer between the client's own accounts. Neither income nor expense. Exclude entirely.

Classification: EXCLUDE.

Section 5 -- Tier 1 Rules (When Data Is Clear)

5.1 Residency Determines the Regime

• Residency determines the regime — Resident: progressive 10%–32% scale on worldwide income; personal/dependent deductions apply. Non-resident: flat 20% withholding on Mozambique-source income; no progressive scale, no personal deductions. From 2026 (Law 11/2025) residency no longer hinges on the >180-day test — see Section 11. (PwC — https://taxsummaries.pwc.com/mozambique/individual/taxes-on-personal-income)

5.2 The Progressive Scale (resident)

• Progressive scale computation — Annual tax = annual taxable income × bracket rate − parcela a abater (Section 1 table). For monthly PAYE, annualise the salary, compute annual tax, then divide as withholding (employer remits by the 20th of the following month — Section 7). (PwC; AT IRPS process page — https://www.at.gov.mz/por/Processos-Fiscais/Imposto-sobre-o-Rendimento-de-Pessoas-Singulares-IRPS)

5.3 Income Categories

5.3 Income Categories (PwC — https://taxsummaries.pwc.com/mozambique/individual/taxes-on-personal-income)

Category	Scope	Notes
1st (Primeira)	Dependent/employment income	Monthly PAYE 0%–32%
2nd (Segunda)	Business and professional/self-employed income	Organized accounting mandatory (Law 11/2025)
Other	Capital/investment, rental, commissions, independent work	Same 10%–32% scale

5.4 Personal / Dependent Collection Deductions

5.4 Personal / Dependent Collection Deductions (PwC — https://taxsummaries.pwc.com/mozambique/individual/deductions)

Item	Annual deduction (MZN)
Each taxpayer (married or single)	1,800
1 dependent	600
2 dependents	900
3 dependents	1,200
4+ dependents	1,800

• Double-taxation relief credit — Double-taxation relief credit is also available. (PwC — https://taxsummaries.pwc.com/mozambique/individual/deductions)

[RESEARCH GAP — reviewer to confirm] These are legacy values and may be revised by the pending Law 11/2025 regulations; not yet confirmed for 2026.

5.5 The Wholly-and-Exclusively Test (2nd category)

• Wholly-and-exclusively test — A business expense is deductible only if incurred for the business activity, supported by organized accounting. Mixed-use expenses must be apportioned reasonably and documented.

5.6 Non-Deductible Items

5.6 Non-Deductible Items

Item	Reason
Entertainment / personal meals	Private
Personal living expenses	Not business-related
Fines and penalties	Public policy
IRPS itself	Tax on income
Drawings / personal withdrawals	Not an expense

5.7 INSS (Social Security)

• INSS rules — Employee 3% + employer 4% = 7% of monthly salary (Section 1). Base excludes the meal subsidy. No ceiling identified. Employer withholds the 3% employee share and remits the full 7%. Worker registration: within 30 days of the start of the employment relationship. Foreign employees may apply for exemption from registration if contributing to a comparable scheme in their home country. (PwC — https://taxsummaries.pwc.com/mozambique/individual/other-taxes ; INSS — https://www.inss.gov.mz/duvidas/)

Section 6 -- Tier 2 Catalogue (Reviewer Judgement Required)

6.1 Home Office Apportionment (2nd category)

• Home office apportionment — Apportion electricity (EDM), water (FIPAG), internet by business-use proportion of the home. Must be a genuinely dedicated workspace. Conservative default: 0% until reviewer confirms arrangement.

6.2 Vehicle Business Use (2nd category)

• Vehicle business use — Only the business-use percentage of fuel and running costs is deductible; mileage log required. Conservative default: 0% until log provided.

6.3 Phone / Internet Mixed Use

• Phone/internet mixed use — Business portion only (TMCEL / Vodacom / Movitel). Conservative default: 0% until business percentage confirmed.

6.4 INSS Payment Deadline Conflict

[RESEARCH GAP — reviewer to confirm] The INSS official site states the remittance window runs from the 20th of the current month to the 10th of the following month; PwC states contributions are due by the 15th of the following month. The INSS site is the primary authority — default to the 10th and flag for the reviewer to resolve against INSS legislation. Sources: INSS — https://www.inss.gov.mz/duvidas/ ; PwC — https://taxsummaries.pwc.com/mozambique/individual/other-taxes

6.5 ISPC vs Organized Accounting (2026 transition)

• ISPC vs organized accounting — ISPC (simplified) and exemption regimes are abolished for IRPS from 2026 (Law 11/2025). Affected taxpayers move to organized accounting. Flag for reviewer: confirm the taxpayer's current regime status against AT before applying ISPC for any 2026 period.

6.6 Residency Reclassification (2026)

• Residency reclassification — Law 11/2025 may make foreign workers resident regardless of days present (Section 11). Flag for reviewer: confirm residency under the new test for any 2026 computation.

6.7 Survival of Personal/Dependent Deductions (2026)

Whether the MZN 1,800 personal deduction and dependent deductions survive Law 11/2025 is not confirmed. Flag for reviewer before relying on them for 2026.

Section 7 -- Excel Working Paper Template

MOZAMBIQUE IRPS -- WORKING PAPER (MZN)
Tax Year: 2025
Client: ___________________________
Residency: Resident / Non-resident
Income category: 1st (employment) / 2nd (business) / Other
Number of dependents: ____

A. INCOME
  A1. Employment income (1st category, annual)   ___________
  A2. Business/professional income (2nd cat.)     ___________
  A3. Rental income                                ___________
  A4. Investment income (interest/dividends)       ___________
  A5. TOTAL annual income                          ___________

B. ALLOWABLE EXPENSES (2nd category only)
  B1. Office rent                                  ___________
  B2. Accountancy / legal fees                     ___________
  B3. Office supplies / software                    ___________
  B4. Marketing / advertising                       ___________
  B5. Bank charges                                  ___________
  B6. Training                                      ___________
  B7. Utilities (home office %)                     ___________
  B8. Vehicle (business %)                          ___________
  B9. Telecoms (business %)                         ___________
  B10. TOTAL allowable expenses                     ___________

C. TAXABLE INCOME (A5 - B10)                       ___________

D. IRPS COMPUTATION (pass to deterministic engine)
  Resident: tax = (C × bracket rate) − parcela a abater
  Non-resident: tax = C × 20%
  D1. Gross IRPS                                    ___________

E. COLLECTION DEDUCTIONS (resident only)
  E1. Personal deduction (MZN 1,800)               ___________
  E2. Dependent deduction (per table)              ___________
  E3. Double-taxation relief credit                ___________
  E4. TOTAL collection deductions                  ___________

F. IRPS PAYABLE (D1 - E4, not below 0)            ___________
  F1. Less: PAYE withheld / pagamentos por conta   ___________
  F2. IRPS due / refund                            ___________

G. INSS (employment)
  G1. Employee 3% of monthly salary                ___________
  G2. Employer 4% of monthly salary                ___________
  G3. Total 7% remitted by employer                ___________

REVIEWER FLAGS:
  [ ] Residency confirmed?
  [ ] Income category confirmed?
  [ ] Dependent count confirmed?
  [ ] Home office / vehicle / telecoms % confirmed?
  [ ] INSS payment deadline resolved (10th vs 15th)?
  [ ] ISPC/exemption regime status confirmed for 2026?
  [ ] Personal/dependent deductions confirmed for the tax year?
  [ ] Entertainment / personal items excluded?
  [ ] Meal subsidy excluded from INSS base?

Section 8 -- Bank Statement Reading Guide

Mozambican Bank Statement Formats

Mozambican Bank Statement Formats

Bank	Format	Key Fields	Notes
BCI	PDF, CSV	Data, Descrição, Débito, Crédito, Saldo	Most common; Portuguese descriptions
Millennium BIM	PDF, CSV	Data Valor, Descrição, Montante, Saldo	POS shows merchant
Standard Bank Moçambique	PDF	Date, Description, Amount, Balance	English/Portuguese mix
Absa Bank Moçambique	PDF, CSV	Date, Narrative, Amount, Balance
Banco Único / Nedbank	PDF	Data, Movimento, Valor, Saldo

Key Mozambican / Portuguese Banking Terms

Key Mozambican / Portuguese Banking Terms

Term	English	Classification Hint
TRANSFERÊNCIA / TRF	Transfer	Check direction for income/expense
DÉBITO DIRECTO / DD	Direct debit	Regular expense (utility, subscription)
SALÁRIO / ORDENADO / VENCIMENTO	Salary	1st category employment income
HONORÁRIOS	Professional fees	2nd category income
LEVANTAMENTO	Cash withdrawal	Ask what cash was spent on
ENCARGOS / COMISSÃO BANCÁRIA	Bank charges	Deductible (2nd category)
JUROS	Interest	Interest income or bank charge
COMPRA POS	Card purchase	Expense -- check merchant
INSS / SEGURANÇA SOCIAL	Social security	Statutory contribution
SUBSÍDIO REFEIÇÃO	Meal subsidy	Excluded from INSS base

Section 9 -- Onboarding Fallback

If the client provides a bank statement but cannot answer onboarding questions immediately:

1. Classify all transactions using the pattern library (Section 3).
2. Mark all Tier 2 items as "PENDING -- reviewer must confirm".
3. Apply conservative defaults (Section 1).
4. Generate the working paper (Section 7) with clear flags.
5. Present the following questions:

ONBOARDING QUESTIONS -- MOZAMBIQUE IRPS
1. Residency: resident or non-resident in Mozambique?
2. Income category: employment (1st), business/self-employed (2nd), or other?
3. Number of dependents?
4. For self-employed: do you keep organized accounting? Are you (or were you) under ISPC?
5. Home office: dedicated space? If yes, what % of the home?
6. Vehicle: used for business? What % is business use? Mileage log?
7. Phone/internet: what % is business use?
8. INSS: are you registered? Are contributions up to date?
9. Any foreign income / double-taxation relief to claim?
10. Any advance payments (pagamentos por conta) or PAYE already withheld?

Section 10 -- Reference Material

Key References

Key References

Topic	Reference
IRPS rates	Código do IRPS; PwC — https://taxsummaries.pwc.com/mozambique/individual/taxes-on-personal-income
AT rate page	https://www.at.gov.mz/por/Comercio-Internacional/Procedimento-Fiscais/Taxas-IRPS (TLS error to fetcher)
Personal/dependent deductions	PwC — https://taxsummaries.pwc.com/mozambique/individual/deductions
INSS contributions & rules	PwC — https://taxsummaries.pwc.com/mozambique/individual/other-taxes ; INSS — https://www.inss.gov.mz/duvidas/
Filing & administration	AT IRPS FAQ — https://www.at.gov.mz/por/Perguntas-Frequentes2/IRPS ; PwC — https://taxsummaries.pwc.com/mozambique/individual/tax-administration
Law 11/2025 reform	DLA Piper — https://www.dlapiperafrica.com/en/mozambique/insights/2026/Changes-to-the-Personal-Income-Tax-Code ; PwC PT Inforfisco — https://www.pwc.pt/pt/pwcinforfisco/flash/mocambique/mocambique-irps-alteracoes-cirps.html ; EY — https://www.ey.com/pt_mz/technical/tax-alerts/alteracoes-do-codigo-do-irps-em-mocambique ; Law text — https://www.lexlink.eu/conteudo/geral/mocambique/4123555/lei-no-112025/147/por-tema

Filing -- Forms & Deadlines (2025 regime)

Filing -- Forms & Deadlines (2025 regime)

Item	Detail	Source
Tax year	Calendar year	PwC
Annual return	Modelo 10 (declaração anual de rendimentos)	AT IRPS process page
Filing — employment only	1 Jan → 31 March of following year	AT IRPS FAQ — https://www.at.gov.mz/por/Perguntas-Frequentes2/IRPS
Filing — all other cases	1 Jan → 30 April of following year	AT IRPS FAQ
IRPS payment	31 May of following year	AT IRPS FAQ
Self-employed advance payments	3 equal instalments: 20 June, 20 September, 20 November	AT IRPS process page
Employer PAYE remittance	By the 20th of the following month	PwC — https://taxsummaries.pwc.com/mozambique/individual/tax-administration
Online platform	eDeclaração — https://edeclaracao.at.gov.mz/	AT

Penalties (IRPS)

Penalties (IRPS) (AT IRPS FAQ — https://www.at.gov.mz/por/Perguntas-Frequentes2/IRPS)

Item	Detail
Late payment	Juros de mora (default interest) accrues immediately from the due date
Taxpayer-caused under-assessment	Juros compensatórios (compensatory interest)
Statutory interest rates / fixed fines (RGIT)	[RESEARCH GAP — reviewer to confirm] — exact juros de mora % and fixed fines under the Regime Geral das Infracções Tributárias were not obtainable from an authoritative fetched source; do not state numbers without verification

INSS Penalties

INSS Penalties

Item	Detail	Source
Non-payment / late submission	Fine of 1 to 3 minimum salaries × number of workers on the declaration	INSS — https://www.inss.gov.mz/duvidas/
Failure to register a worker	1 to 5 minimum salaries	INSS — https://www.inss.gov.mz/duvidas/

Sector Minimum Wages (2025, effective 1 July 2025, retroactive)

Set by Ministerial Diplomas Nos. 87–94/2025 (approved 22 Sep 2025). There is no single national minimum — it is sector-based.

Sector Minimum Wages table (DLA Piper Africa / SAL & Caldeira — https://www.dlapiperafrica.com/pt/mozambique/insights/2025/Approval-of-New-Minimum-Wages-2025 ; Club of Mozambique — https://clubofmozambique.com/news/mozambique-minimum-wages-increase-2-9-to-9-depending-on-sector-with-retroactive-effect-from-1-july/)

Sector	2025 monthly minimum (MZN)
Agriculture, livestock, hunting, forestry	6,688.00
Maritime/industrial/semi-industrial fishing	6,726.88
Kapenta fishing	4,991.09
Mineral extraction — large companies	15,176.66
Mineral extraction — medium enterprises	8,008.00
Mineral extraction — micro/small (incl. salt)	6,538.44
Manufacturing (excl. bread & cashew)	10,147.50
Bread manufacturing	7,200.00
Cashew industry	6,653.21
Electricity/gas/water — large companies	12,275.00
Electricity/gas/water — small/medium	9,960.62
Construction	8,400.00
Non-financial services	10,310.00
Hotels/tourism	9,700.00
Private security	8,465.00
Fuel retail	9,739.00
Banking & insurance	19,043.61
Microfinance & micro-insurance	16,764.47

Municipal Personal Tax (Imposto Pessoal Autárquico)

Small annual flat tax that varies by municipality (e.g., Maputo cited ~MZN 510 for 2024 per PwC). [RESEARCH GAP — reviewer to confirm] current-year value per municipality. Source: PwC.

Test Suite

Input: Resident, annual employment income 600,000, single (no dependents). Expected: 25% bracket → 600,000 × 25% − 37,500 = 150,000 − 37,500 = 112,500 gross IRPS; less personal deduction 1,800 = 110,700.

Input: Resident, annual 168,000, 2 dependents. Expected: 15% bracket → 168,000 × 15% − 2,100 = 25,200 − 2,100 = 23,100; less 1,800 personal − 900 (2 dependents) = 20,400.

Input: Resident, annual 42,000, single. Expected: 10% bracket → 42,000 × 10% − 0 = 4,200; less 1,800 = 2,400.

Input: Resident, annual 2,000,000, single. Expected: 32% bracket → 2,000,000 × 32% − 141,540 = 640,000 − 141,540 = 498,460; less 1,800 = 496,660.

Input: Non-resident, 200,000. Expected: 200,000 × 20% = 40,000. No personal deductions.

Input: Monthly salary 50,000. Expected: Employee 3% = 1,500; employer 4% = 2,000; total 7% = 3,500 remitted by employer. (1,500 + 2,000 = 3,500. ✓)

Input: Salary 30,000 + meal subsidy 4,000. Expected: INSS base = 30,000 (meal subsidy excluded). Employee 3% = 900; employer 4% = 1,200; total = 2,100.

Section 11 -- Law No. 11/2025 (IRPS reform, in force 1 January 2026)

Key changes (verify final regulations, due within 180 days of the law):

1. Residency redefined. The >180-day physical-presence test is removed. Residency now turns on having one's main residence, main professional activity, or centre of economic interests in Mozambique; ship/aircraft crew of MZ entities; and MZ nationals on foreign assignment not fully taxed abroad. Effect: many foreign workers become resident regardless of days present.
2. Simplified & exemption regimes abolished for IRPS → affected taxpayers move to organized accounting (see ISPC, Section 5/Section 6).
3. Filing waiver removed for employees with PAYE-only income — from 2026 such employees must also file the Modelo 10.
4. Digital services / e-money agent commissions: 10% final (liberatory) withholding on income from digital services and electronic-money agent commissions (including by non-residents); broadened taxable base for digital services performed/used in Mozambique.
5. Capital gains: new autonomous regime (Art. 54-A) taxed on the 10%–32% scale.
6. Second-category taxpayers: must keep organized accounting.

Sources: DLA Piper Africa / SAL & Caldeira — https://www.dlapiperafrica.com/en/mozambique/insights/2026/Changes-to-the-Personal-Income-Tax-Code ; PwC PT Inforfisco — https://www.pwc.pt/pt/pwcinforfisco/flash/mocambique/mocambique-irps-alteracoes-cirps.html ; EY — https://www.ey.com/pt_mz/technical/tax-alerts/alteracoes-do-codigo-do-irps-em-mocambique ; Law text — https://www.lexlink.eu/conteudo/geral/mocambique/4123555/lei-no-112025/147/por-tema

Section 12 -- Open Items (figures NOT confirmed from authoritative fetched sources)

[RESEARCH GAP — reviewer to confirm] each of the following before publishing a number:

1. ISPC threshold (MZN 2,500,000 turnover), 3% rate, and fixed amount (MZN 75,000) — commonly published but not reconfirmed from a fetched AT page this session (AT TLS error). Verify on the AT ISPC page — https://www.at.gov.mz/por/Processos-Fiscais/Imposto-Simplificado-para-Pequenos-Contribuintes-ISPC . Note ISPC is abolished for IRPS from 2026.
2. AT official IRPS rate/process pages could not be fetched directly (certificate error); bracket data corroborated by PwC — confirm against AT when accessible.
3. Exact IRPS penalty/interest rates (juros de mora %, fixed fines under RGIT) — not obtained; verify before publishing numbers.
4. INSS payment deadline conflict — INSS site says by the 10th of the following month; PwC says by the 15th. Resolve against INSS legislation.
5. Whether the MZN 1,800 personal deduction / dependent deductions survive Law 11/2025 — not confirmed for 2026.
6. Municipal personal tax (Imposto Pessoal Autárquico) — varies by municipality (Maputo ~MZN 510 for 2024 per PwC); confirm current-year value.

PROHIBITIONS

• NEVER apply the progressive scale without confirming residency — non-residents pay a flat 20%
• NEVER apply personal/dependent deductions to a non-resident
• NEVER include the meal subsidy in the INSS contribution base
• NEVER state a total INSS rate other than 7% (3% employee + 4% employer)
• NEVER include IRPS itself, fines, drawings, or personal expenses as deductions
• NEVER apply the ISPC simplified regime to a 2026 period without confirming it survived Law 11/2025 (it is abolished)
• NEVER invent juros de mora / RGIT penalty rates — they are a RESEARCH GAP
• NEVER assume the >180-day residency test for 2026 — Law 11/2025 replaced it
• NEVER present tax calculations as definitive — always label as estimated and pending reviewer sign-off
• NEVER rely on the published parcela-a-abater continuity without the reviewer note in Section 1

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