Mozambican government fights tax evasion on home rentals

7 June 2013

The proposed Law for the Urban Building Rental Regime between private individuals and organisations, this week approved by the Mozambican government is intended to combat tax evasion, said government spokesman and deputy Justice Minister, Alberto Nkutumula.

The proposed law, which will now be sent to the country’s parliament for approval, is intended to prevent tax evasion by many property owners who, despite having rental income from urban buildings, do not pay income tax on those earnings.

“There are currently more individuals renting out properties than buying them but the property owners do not always pay the due tax, which affects the State,” said Nkutumula cited by daily newspaper Notícias. (macauhub)