Guides a Mozambique-resident self-employed individual or freelancer (2nd category / segunda categoria) through computing annual IRPS liability under the progressive 10–32% scale, preparing allowable expense accounts under organized accounting (contabilidade organizada), crediting pagamentos por conta advance instalments, and lodging the Modelo 10 return via the eDeclaração portal by the 30 April deadline.
Establish the client's tax residency status under the Código do IRPS as amended by Law No. 11/2025 (in force 1 January 2026). Residency now turns on main residence, principal professional activity, or centre of economic interests in Mozambique — not a day-count. Residency governs whether the progressive 10–32% scale or the flat 20% non-resident withholding applies, so it must be confirmed before any computation begins.
Gather all 2nd-category (segunda categoria) income for the tax year — invoices (facturas/recibos), bank credits labelled HONORÁRIOS or PRESTAÇÃO DE SERVIÇOS, and any commission income. Cross-reference bank statements from BCI, Millennium BIM, Standard Bank Moçambique, Absa, or Banco Único against issued invoices to ensure completeness. Flag any e-money agent commissions, which attract a 10% final liberatory withholding from 2026 under Law 11/2025 and must be excluded from the progressive-scale computation.
Under Law No. 11/2025 the ISPC simplified regime is abolished for IRPS from 2026; all 2nd-category taxpayers must use contabilidade organizada (organized accounting). Review the client's expense records against the wholly-and-exclusively test and classify each debit as fully deductible, mixed-use (apportion), or non-deductible. Mixed-use items — home office electricity (EDM), water (FIPAG), phone (TMCEL/Vodacom/Movitel), and vehicle fuel — require a documented business-use percentage before any deduction is allowed.
Apply the progressive IRPS scale to the annual net taxable income. Compute gross tax using the bracket formula (annual income × rate − parcela a abater), then subtract the flat personal deduction (MZN 1,800) and any dependent deductions (MZN 600 for 1 dependent, MZN 900 for 2, MZN 1,200 for 3, MZN 1,800 for 4+). Credit any pagamentos por conta (advance instalments paid on 20 June, 20 September, and 20 November of the tax year) to arrive at the final IRPS balance due or refund. Also calculate INSS self-employment obligations if applicable.
Prepare and lodge the Modelo 10 (declaração anual de rendimentos) on the AT eDeclaração portal at edeclaracao.at.gov.mz. Self-employed taxpayers (and all 2nd-category taxpayers) must file by 30 April of the year following the tax year; IRPS payment is due by 31 May. From 2026 under Law 11/2025, even employment-only (1st category) taxpayers must file the Modelo 10 — the prior waiver is removed. Final payment of any balance due must reach AT by 31 May to avoid juros de mora (default interest).
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