The Council of Ministers approves five decrees to modernize the tax system in Mozambique

On September 29, 2026, the Council of Ministers held its 28th Ordinary Session, during which it reviewed and approved five decrees of importance to the Mozambican legal system, notably the reform of the tax system and the regulation of voluntary work.

Firstly, the Government approved the Decree that approves the Regulation of the Volunteer Law, repealing Decree No. 52/2017, of October 11. This regulation establishes the mechanisms for accrediting volunteer work, with the aim of providing greater speed, flexibility and efficiency to the processes, as well as strengthening the control mechanisms applicable to citizens and entities promoting volunteering, in their various forms of organization, that promote and carry out volunteering in the country.

In the area of ​​taxation, four decrees were approved to implement the reforms introduced by Laws No. 9/2025, 10/2025, 11/2025 and 12/2025, all of December 29, which amended, respectively, the ISPC, VAT, IRPS and IRPC Codes.

Thus, the Decree that amends articles 3, 4, 10, 11, 19, 21, 25, 27, 29, 33, 34, 36, 37, 39, 42, 43, 45 and 55 of the Regulations of the Corporate Income Tax Code (IRPC), approved by Decree No. 9/2008, of April 16, and amended by Decrees Nos. 68/2009, of December 11, and 3/2012, of February 24, is part of the ongoing reforms in the Mozambican tax system. The decree aims to define deadlines, formalities, administrative mechanisms, ancillary duties, and other essential complementary procedures to ensure the correct, uniform, and efficient execution of the Tax Law, as well as to guarantee greater legal certainty, predictability, and transparency in the legal-tax relationship between the Tax Administration and taxpayers.

In parallel, the Decree approving the Simplified Tax Regulation for Small Taxpayers (ISPC) revokes Decree No. 14/2009, of April 14. The new regulation establishes the form and procedures of the ISPC, applicable to individuals or legal entities that carry out, in the national territory, forestry, fishing, livestock, agricultural, poultry and beekeeping activities, small-scale industrial and commercial activities, including handicrafts, service provision, street vending, in stalls, stands, kiosks, canteens and tents, in order to adapt them to the changes introduced by Law No. 9/2025, of December 29, which amends the ISPC Code.

With regard to VAT, the Decree that amends articles 3, 7, 8, 15, 16-A, 18, 21, 23, 28, 36 and 37 of the Regulation of the Value Added Tax (VAT) Code, approved by Decree No. 7/2008, of April 16, and amended by Decrees Nos. 4/2012, of December 11, 3/2012, of January 23, and 8/2017, of April 6, falls within the reforms introduced by Law No. 10/2025, of December 29. The change aims to modernize the system, broaden the tax base, strengthen the capacity to collect public revenue, and align with international best practices in consumption taxation, including in the digital economy, in order to reinforce legal certainty and predictability for taxpayers, promoting greater clarity in the interpretation and fulfillment of tax obligations.

Finally, the Decree amending articles 2, 4, 5, 7, 9, 10, 15, 16, 17, 18, 20, 23, 24, 25, 27, 28, 29, 30, 31, 32, 38, 39, 43, 47 and 47 of the Regulations of the Personal Income Tax Code (IRPS) is also part of the ongoing reforms to the Mozambican tax system, introduced by Law No. 11/2025 of December 29. The decree aims to define deadlines, formalities, administrative mechanisms, ancillary duties and other complementary procedures essential to ensure the correct, uniform and efficient execution of the Tax Law, as well as to guarantee greater legal certainty, predictability and transparency in the legal-tax relationship between the Tax Administration and taxpayers.