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Mozambique — Orbitax Country Chapters
6.3. Depreciation and Amortization

When calculating Mozambican taxable income, assets owned by an enterprise are normally depreciated over their normal useful life using the straight-line basis, at the rates specified for each type of the asset. The following outline the rates for different assets types:

Tangible Assets:
Industrial buildings 2
Residential buildings 10
Office and administrative buildings 2
Machinery, installations, air conditioning and telephone equipment 12.5
Tools 25
Laboratory equipment 12.5
Furniture and filing systems 10
Computer and printers 25
Computer servers 20
Warehouse of filing installations 5% to 8.33%
Trucks 20
Automobiles 25

Intangible assets, in the form of Patents are amortizable over the useful life of the asset at the rate of 10% on a straight-line basis. Manufacturing licenses, concessionaire agreements, and similar rights are amortizable at the rate of 5% on a straight-line basis, subject to satisfaction of conditions.

Further, the taxpayer may be allowed depreciation on trademark or premium of taking over leases of real estate, if there is a proven reduction in its value within the reasonable limits, as determined by the tax authorities.

Additionally, the following expenses may be amortized at the rate of 33.33% on a straight-line basis:

  • Pre-operating expenses incurred prior to the commencement of business; and
  • Deferred expenses arising in connection with increases in share capital, changes in form of business enterprises, issuance of debentures, marketing and other studies, and financial expenses incurred for the acquisition or own production of fixed assets prior to completion.

Accelerated Depreciation

New immovable assets used in the business are allowed an accelerated depreciation of 50%. Such benefit is also available to rehabilitated immovable assets, and equipment used in agro-industrial activity for approved investment projects.