Mozambique Highlights:
- An EoR (Employer of Record) package is the most efficient and effective way to deploy local and foreign employees in Mozambique.
- 1WB acts as an EoR ensuring full compliance with country’s regulations.
- The whole deployment process for foreigners takes about 4 weeks whereas for locals within 1 week.
- Handling payroll processing, immigration and taxes compliantly, swiftly and cost efficient.
- Income tax rates:
| Annual Income (MZN) | Tax Rate % | Deduction (MZN) |
|---|---|---|
| 0 - 42,000 | 10% | - |
| 42,001 - 168,000 | 15% | 2,100 |
| 168,001 - 504,000 | 20% | 10,500 |
| 504,001 - 1,512,000 | 25% | 37,500 |
| 1,512,001 and above | 32% | 141,540 |
| Amount deductable after applying rate to whole amount |
- For non-Mozambican residents, the earned income tax is withheld and remitted by the employer or other payer at a definite flat rate of 20% (in the majority of the income received).
- Corporation tax is levied on taxable profits at a tax rate of 32%
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Social security contributions are payable monthly on all salaries, regular bonuses or other regular income, excluding meal subsidies.
The employer contributes an amount equal to 4% of monthly salary and the employee contributes 3% of monthly salary.
Foreign employees may apply for exemption from registration with the social security system, provided they are contributing to a similar system in their home country. - Work permit - 1WB can sponsor work permits for foreign employees and the processing time is about 4 weeks.