TAX COMPLIANCE

Our Tax Compliance services includes all the accounting, payroll and tax compliance procedures that are mandatory to keep your business on the right track, being rendered by a team composed of experts in accounting,payroll and tax matters that will assist you to manage your business and to keep compliant.

Preparation of financial statements and group reporting

The Ministry of Finance mandates that every entity (whether a subsidiary or branch) in Mozambique maintains its accounts in accordance with the Mozambican Chart of Accounts. The preparation and presentation of financial statements must be in Portuguese and must be presented in the local currency (Metical).

International clients have specific group reporting standards that need to be reconciled with local GAAP. This duality on the reporting standards may result in pending non reconciled items, missing local compliance obligations and practical issues in maintaining locally available records supporting the local accounting and tax records.

We are prepared to assist you with the bookkeeping and the compliance of all group reporting procedures including, the reconciliation with local accounting standards to ensure full compliance in issuing the local statutory financial statements.

Payroll

Payroll procedures have an impact on the financial statements and on the payroll tax returns, whereby it is essential to implement the necessary procedures to ensure compliance and reconciliation between the accounting and the tax files, issuing and keeping a record of each pay slip.

Our team can assist you on all the payroll compliance requirements for all your employees involved in the local operations.

Preparation and submission of tax returns and tax file

The Tax Law entails a variety of tax and accountingreporting procedures that are mandatory as from the full registration of the local entity, even if no transactions are carried on. These records are often used by the tax authority to proceed with internal reviews regarding the coherence of the information reported for tax and accounting purposes, if divergences are found, a litigation process may arise. Moreover, the late submission of tax returns and subsequent tax filing normally result in significant penalties. Our Tax Compliance team is fully prepared to assist you on all compliance obligations towards the tax authority, assuring that the documentation submitted is reviewed and coherent.

VAT refund request processes

The VAT refund process entails a detailed documented support of all thetaxpayers’ transactions for the period under analysis, which shall be coheren with its financial statements and tax files. The VAT refund request is always liable to a specific inspection procedure by the tax authority and, dependingon the irregularities found, the process may have to be amended or, in the limit, there fund may be fully denied.

A good preparation of the VAT refund request is ofessence to assure its success.

Our Tax Compliance team has a deep experience and knowledge of the VAT refund process, having achieved good success with regards to this process.

CIT refund request processes

Under the Mozambique income tax law it is mandatory that taxpayers which were on a tax paying position in previous year, to maketax advance payments to the tax authority in 3 equal instalments. Provided that such tax advances exceeded the final CIT liability for the year, CIT refundprocedures may be undertaken by the taxpayer to recover the excess tax amount paid in advance.

Our team may assist your company in designing adequateprocedures to recover the excess CIT paid.

Assist on internal and external audit reviews

On the scope of the financial statement’s preparation,we can assist you on any information request either from external or internalauditors, in order to collaborate on the periodic reviews carried on. A good and recurrent collaborative environment on the scope of the review of the financial statements avoids major year-end adjustments or delays on meeting the reporting deadlines.

Assist on answering tax authority’queries

Concerning the collaboration between the taxpayers and the tax authority, the tax authority may request additional financial and tax information in order to assess the accuracy of your tax position. On the scope of the preparation of the financial statements and tax returns we can effectively assist you in liaising with those communications in order to ensure an efficient flow of information with the tax authority.

Learn more about Tax.