The Mozambican parliament is due this week to discuss a proposed law to tax oil transactions intended to adapt legislation to international practices within the sector, according to Mozambican daily newspaper Notícias.
The proposed law to review the Specific Regime on Taxation and Fiscal Benefits Applicable to Oil Transactions is intended to bring together all tax matters related to the oil sector, make interpretation of the law easier, ensure a better business climate and effective action by making use of additional tax revenue.
With this review, which replaces the law that set the original tax level, the specific rules for taxation of oil transactions and applicable tax breaks, the government plans to set out specific tax schemes for oil transactions and update the list of customs tax exempt goods that oil projects may import.
The Specific Regime for Taxation and Fiscal Benefits on Oil Transactions will be applied to Mozambique registered companies as well as to Mozambican or foreign individuals, based on the terms of a concession contract under Mozambican jurisdiction. (macauhub/MZ)