Mozambican government wants to tax the buying and selling of shares in companies operating in Mozambique

3 April 2012

The Mozambican government wants to tax deals to sell and buy shares in mining companies with projects in Mozambique and a specific proposal is due to be presented in May for that purpose, Mozambican news agency AIM reported.

For this purpose a joint team has been set up made up of technicians from the Ministries for Mining Resources, and Finance to work on and identify deals that may be taxed in this area, following the announcement that Cove Energy, which has an 8.5 percent stake in a consortium involved in oil and gas exploration in the Rovuma basin, is for sale.

This and other similar transactions are carried out outside Mozambique and rarely with the knowledge of the country’s authorities and the buying and selling companies benefit from having licenses to mine in Mozambique.

There was recently an exception in which Mozambique was paid dividends from the sale of shares in companies operating in Mozambique.

Following the death of its owner, Australian group Talbot, which was in control of Minas Revuboé, in Tete province, was sold for 630 million Australian dollars and the Mozambican state netted 71.98 million Australian dollars from a tax charged on the profit made from this transaction. (macauhub)