Maputo, Mozambique, 19 Dec – Mozambique’s parliament has approved a new bill aimed to simplify tax regimes for small and micro companies, the AIM news agency has reported.
Under the proposals, any business or trader with an annual turnover of less than 2.5 million meticais (about US$ 100,000) can opt for the simplified regime to pay income and corporation tax and VAT.
The simplified tax system (known as ISPC) is charged at 125,000 meticais a year in towns and 75,000 meticais a year in rural areas. Firms can instead choose to pay 5 percent of revenues in towns, or 3 percent if in the countryside.
Presenting the bill to MPs, Finance Minister Manuel Chang said small and micro companies play a vital role by creating jobs and supplying products for markets to boost the economy’s competitiveness. (macauhub)