The recently concluded deal between Italian group ENI and US group ExxonMobil will provide Mozambique with capital gains taxes of about US$350 million, said on Tuesday in Maputo a senior executive of the Mozambican Tax Authority (AT).
Aníbal Mbalango, the Deputy Director General of Planning and Studies and International Cooperation at the AT, said that the figure results from application of the current capital gains tax of 32% on about half of the amount raised by ENI in the sale.
The Italian group sold an indirect 25% stake in the Area 4 block of the Rovuma basin, in Cabo Delgado province, northern Mozambique, to ExxonMobil for US$2.8 billion.
The reduction by half of the amount to which the tax is levied is due to the fact that the ENI group is a non-tax resident and the additional reduction to US $ 1.1 billion derives from investments already made.
Anibal Mbalango added that the tax will have to be paid only after the business has been completed and that the Italian group has, under the terms of the law, to appoint a natural or legal person domiciled, residing or effectively managing in Mozambique to serve as its representative before AT In order to comply with tax obligations. (Macauhub)