Income earned in Mozambique by a non-resident which does not have a permanent establishment in the country is subject to final and definitive withholding tax under the domestic tax laws.

Dividend

Tax is withheld at 20% on dividends paid by resident entities to non-residents.

Interest

Tax is withheld at 20% on interest paid by resident entities to non-residents.

Royalty Copyright

Tax is withheld at the rate of 20% on royalties paid to non-residents.

Royalty Patent

Tax is withheld at the rate of 20% on royalties paid to non-residents.

Royalty Trademark

Tax is withheld at the rate of 20% on royalties paid to non-residents.

Service Management

Tax is withheld at the rate of 20% on service management fees paid to non-residents.

Service Technical

Tax is withheld at the rate of 20% on service technical fees paid to non-residents.

Other

Any other income earned by non-residents is subject to withholding tax at 20%.

A reduced withholding tax rate of 10%, applies for:

• Telecommunications and international transport, including respective installation and assembly of equipment made by those same entities,
• Construction and rehabilitation of production, transport, and distribution of electricity infrastructures in the rural zones under the public projects of rural electrification;
• Payments for services provided by non-residents to national agriculture companies (effective 1 January 2023); and
• Maritime vessels freight for fishing and coasting activities.

* Rates are current as of 28 May 2023