Find Accountancy, Audit and Tax expertise in Mozambique
The vast majority of the few accountancy firms in Mozambique are located in the capital, Maputo. The top accountancy firms are working with the government and the World Bank to set up an accountancy institute. Annual statutory accounts must be prepared by all entities, as taxable income is based on the profits shown on the accounts. Reports of all Mozambican entities must be in Portuguese. All public companies are required by law to be audited; this is not the case for all private companies, however. The Bank of Mozambique, the country’s central bank, must approve external auditors before they can be used by finance companies. The Mozambique Association of Accountants and the Association of Internal Auditors in Mozambique (AMAI) are the leading professional bodies. The government has taken steps to bring all parts of the business and financial sector in line with International Financial Reporting Standards (IFRS). Banks have been required to meet the IFRS since 2007 and as of 2011 large and medium sized companies were also required to prepare their financial reports using IFRS. It is hoped that this will lead to greater transparency and ease of comparability and regulation. Three of the ‘Big Four’- KPMG, Ernst and Young and PWC – operate within the country.
The 2011 World Bank Ease of Doing Business Index shows that Mozambique comes 143rd out of 183 countries with regards to resolving insolvency, with neighbouring country Zimbabwe ranked at 153. With regards to strength of auditing and reporting standards, the World Economic Forum’s Global Competitiveness Report (2012-13) gives Mozambique a score of 3.9 out of a possible 7, the same score as neighbouring counterpart Tanzania and below the world mean of 4.6.
The Mozambique Association of Accountants is a member of the Association of Certified Chartered Accountants (ACCA) and of the Eastern Central and Southern African Federation of Accountants (ECSAFA) which aims to promote and develop accountancy standards in the region. There is also an Association of Internal Auditors in Mozambique (Associação Moçambicana de Auditores Internos). In 2008 it was estimated that there were around 50 fully qualified accountants operating in Mozambique, although training centres are being developed to increase this number.
Individual and corporate income tax is calculated at a progressive rate up to a maximum of 32%. Non-residents corporate tax is lower, at 20%, providing incentive for foreign businesses in Mozambique. In 2009 15.4% of GDP was gained through tax. World Bank Ease of Doing Business Index (2011) ranks Mozambique 108th out of 183 countries for paying taxes. Neighbouring Zambia comes 47th whereas Tanzania and Zimbabwe are more in line with Mozambique coming 129th and 127th respectively. With a score of 34.3, the World Economic Forum’s Global Competitiveness Report (2012-2013) puts Mozambique in 52nd place out of 141 countries, only four places below South Africa and above Zimbabwe with regards to total tax rate.