Republic of Mozambique

Employers in Mozambique must withhold and remit IRPS monthly and INSS contributions on behalf of employees. This obligation applies to all registered employers operating in the country, regardless of sector or size. IRPS withheld from employees’ salaries must be paid to the tax authority by the 20th of the month following the month in which the salaries were paid. INSS contributions are due monthly, typically by the 10th day of the month following the month to which the contributions relate. Additionally, employers are required to register all employees – both Mozambican nationals and resident expatriates – with the INSS. However, this obligation does not apply to expatriate employees who can provide proof that they are covered by a social security scheme in another country. Employers are required to submit each employee’s registration form within 30 days from the start date of the employment contract. At the end of each calendar year, employers must also submit an annual income tax declaration, known as Modelo 10 (M/10 IRPS) and employee tax certificates to the authorities and employees, typically by the last working day of March. Following amendments effective from 1 January 2026, the previous exemption from filing an annual return for individuals earning only employment income subject to monthly withholding was repealed. These requirements are established under Mozambique’s IRPS Code, the General Tax Code, and the Social Security Law (Law No. 4/2007).