Are you looking to cease your tax residency in Mozambique? Whether you're moving abroad or making changes to your financial status, this guide will walk you through the essential steps to ensure your tax residency status is appropriately updated.
Step 1: Determine Eligibility
Verify that you meet the criteria for ceasing tax residency. According to the Mozambican tax law, you need to be absent from the country for more than 183 days in a fiscal year or prove that your permanent home or primary economic activities have been relocated to another country.
Step 2: Notify Mozambican Tax Authorities
Submit a formal notification to the Mozambican tax authorities (Autoridade Tributária de Moçambique). This notification should include your name, tax identification number, the date of departure, and the reason for ceasing tax residency. Ensure that this is done promptly to avoid any legal complications.
Step 3: Settle Outstanding Tax Obligations
Ensure that all pending tax liabilities are settled before ceasing your tax residency. This includes income tax, property tax, and any other taxes applicable. Obtain a tax clearance certificate from the Autoridade Tributária de Moçambique to confirm that there are no outstanding tax dues.
Step 4: Close Local Bank Accounts
If applicable, close your local bank accounts or update the address and residency status associated with these accounts. Inform your bank about your change in tax residency status to ensure that your financial records are accurate.
Step 5: Deregister from Social Security
Inform the National Institute of Social Security (Instituto Nacional de Segurança Social) about your departure and cessation of tax residency. This ensures that your social security contributions are accurately recorded and any potential benefits are appropriately managed.
Step 6: Update Personal Records
Update your personal records with relevant institutions, such as your employer, utility companies, and other service providers. This helps in avoiding any miscommunication and ensures that your departure from Mozambique is officially recognized.
Legal References
- Mozambican Personal Income Tax Code (Código do Imposto sobre o Rendimento das Pessoas Singulares)
- Mozambican General Tax Law (Lei Geral Tributária)
- Regulations of the National Institute of Social Security (Regulamentos do Instituto Nacional de Segurança Social)
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