On 30 May 2019, the Parliament of Mozambique (Assembleia da República de Moçambique) approved Law no. 1/2019 establishing an incentive for taxpayers to accomplish any unsettled tax liabilities. The purpose of this law is to create a special regime for the taxpayers having tax debts, fines, interest and tax execution costs related to national and municipal taxes etc. unpaid as of 31 December 2018. By this law the tax authority will allow taxpayers relieving themselves form such kind of tax debt.
The main purpose of this Law is to provide incentives on tax debt relief and increase collection of tax. On the following conditions, taxpayers may claim incentives:
- interest, fines and penalties in debt were unpaid as of 31 December 2018,
- the regularization of the tax due is made within 12 months from the date from which the Law entered into force (by 30 May 2020), and
- an application for regularization of tax debt is made by the taxpayer, requesting payment and providing a settlement schedule.
On 26 June 2002, Mozambique implemented Law relating to income tax system, where tax authority emphasized on tax payment, fine, interests and penalties. Moreover, on 22 March 2006, the tax debts was defined by the Law Nº 2/2006 approving approves the principles and general rules of the Mozambican tax legislation applicable to the national and municipal taxes.
The Law on tax debt relief is effective from the date 30 May 2019.
