Mozambique: Amendments to VAT, corporate and individual income tax, excise tax, and customs laws
Changes affecting VAT and income taxation of digital transactions effective January 1, 2026
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January 7, 2026
The KPMG member firm in Mozambique prepared reports regarding the following tax law amendments, all approved and published on December 29, 2025, and effective January 1, 2026:
- Law No. 10/2025 amended the value added tax (VAT) law to provide that digital goods and services are now explicitly included in the VAT taxable base and impose monthly reporting obligations on nonresidents purchasing digital goods and services. The law also made changes to align output and input VAT, revised the process for requesting refunds of input VAT credits, and repealed the simplified and exemption VAT regimes.
- Law No. 12/2025 amended the corporate income tax law to revise the concept of permanent establishment (PE), extend the tax net to include taxation of arising from the transfer of goods or the provision of services through digital means, subject capital gains to autonomous taxation at a rate of 32%, and repeal the simplified taxation regime.
- Law No. 11/2025 amended the individual (personal) income tax law to make changes similar to those made to the corporate income tax law.
Read the January 2026 report (Portuguese and English)
- Law No. 7/2025 extended the existing excise duty rates applicable under Law No. 19/2022 until 2027.
- Law No. 8/2025 (approved and published on December 29, 2025, and effective January 1, 2026) introduced the possibility of exemption or reduction of customs duties for certain motor vehicles when intended for state institutions, or imported under agreements and treaties entered into by the government for the implementation of state projects, and also established the tariff dismantling schedule applicable within the framework of the African Continental Free Trade Area (AfCFTA) for the period 2025 to 2033.
- Law No. 09/2025 (approved and published on December 29, 2025, and effective January 1, 2026) introduced various amendments to the small taxpayers’ tax code (ISPC), including increasing the annual turnover threshold from MT 2,500,000.00 to up to and including MT 4,000,000.00.