Thursday, 17 February 2005

Investments under the Petroleum Law Article
(Import and Export benefits)

Enterprises that carry out petroleum operations, onshore and off-shore, in the Republic of Mozambique, including their contractors and
subcontractors, shall, during the term of the licence, benefit from:

a) Exemption from customs duties with regard to the importation of goods destined to be used in petroleum operations, vehicles and other imported supplies excluding passenger vehicles for the transport of passengers (sic);

b) Temporary importation with suspension of payment of duties and other customs and fiscal charges on goods destined for use in petroleum operations, such as drilling rigs, machinery, equipment, aircraft and boats in accordance with the terms of the Preliminary Instructions of the Customs Tariff Schedule;

c) Exemption from customs duties on the exportation of the goods
referred to in the preceding paragraph once such goods are no longer
needed for the petroleum operations, except that the revenue obtained from the exportation of such goods which will be the subject of assessment of Corporate Income Tax (IRPC).

d) Exemption of customs duties and customs charges with regard to the exportation of petroleum produced in the Republic of Mozambique.

e) The imports and exports referred to in the preceding paragraphs shall also benefit from an exemption from the Value Added Tax (VAT) as provided in the VAT Code approved by Decree 51/98 of 29 September [as amended] and the Specific Consumption Tax (SCT) in the SCT Code approved by Decree 52/98, of 29 of September [as amended]. Until the year 2010, investments carried out under the Petroleum Law, shall, during the first eight (8) years from the commencement of production, benefit, from a twenty-five (25%) percent reduction in therate of the Corporate Income Tax (IRPC).

Wednesday, 16 February 2005

Mozambique wants more investments

President Armando Guebuza has called on Mozambican ambassadors and consuls to embark on a diplomacy that will reinforce Mozambique’s friendly and cooperation ties with different countries around the world in order attract investments and other types of support for the success of the his government’s five-year plan. Guebuza met with the diplomats yesterday in order to have a better perception of their activities abroad. Mozambique has been a privileged destination of investment from all corners of the globe over the last decade following a climate of peace and political, social and economic stability. The Mozal aluminim smelter, just outside Maputo, the natural gas pipeline to neighbouring South Africa, are some of the investment features with 2 billion and 1.2 billion dollars respectively.

Special Fiscal Benefits for Agriculture
(Article 22 of the Code of Fiscal Benefits)

a) Exemption of Import duties
1. Investment undertakings in agriculture, which are authorised in
accordance with the Investment Law and Regulations, shall benefit from an exemption from payment of import duties on equipment included in Class “K” of the Customs Tariff Schedule.

2. The benefit referred to in the previous clause shall only be allowed when the goods to be imported are not produced within Mozambican territory or if produced do not satisfy the particular characteristics either required in terms of the intended use and purpose or inherent to the nature of the project and the respective activity to be developed and carried out.

Article 23
b) Reduction of the Rate of Income Tax
1. Investment undertakings in agriculture, carried out pursuant to the
Investment Law and Regulations, shall, until the year 2012, benefit from an eighty (80%) reduction in the tax rate applicable to profits from agricultural ventures.

2. In the case of taxpayers subject to Personal Income Tax (IRPS), the reduction provided for in the previous clause shall only apply to taxable profits derived from activity benefiting from the incentive and belonging to the Second Category of Personal income Tax (IRPS).

3. At the end of the period stipulated in clause 23.1, new undertakings covered by this section shall be entitled to the fiscal benefits provided for under articles 15 and 16 of this Code. Article 24 (Additional Benefits) The fiscal benefits provided for in articles 18 to 21 of this Code shall also apply to investment undertakings in
agriculture that are covered by this section.

News Source:
Mozambique Business
Research and Developmnet Division - CPI