Industrial Free Zone

Area or unit(s) of industrial activity geographically delimited and regulated by a specific customs regime whereby goods therein which are destined exclusively for export production, including the export goods produced by such activities, are exempt from any customs duties and related taxes or Para-fiscal charges and small also benefit from appropriated exchange, fiscal and labour regimes especially instituted and designed for the efficient functioning of the undertaking operating therein, particularly with regards to their commercial and financial obligations abroad, provided the expected benefits to Mozambique include the general stimulation of regional development and the generation of general economic benefits and, in particular, the expansion of productive and commercial capacity, a wider tax base, the creation of jobs and the generation of foreign exchange.

Fiscal Incentives

Companies operating under the Free Industrial Zone regime enjoy fiscal and non-fiscal benefits, namely:
Exemption from tax on import (including the Value Added Tax (VAT) of building materials, equipment, accessories, parts and other commodities aimed at pursuing the granted activities in the IFZ’s;

• Exemption from VAT on domestic purchases. INCOME TAX (IRPC)

Industrial Free Zone Developer and Enterprises

• IRPC exemption in first 10 Tax years;
• 50% reduction in the rate of IRPC Tax from the 11th to the 15th Tax year;
• 25% reduction in the rate for the remaining life of the project;

Isolated Free Zone Enterprises

• IRPC exemption in the First 10 Tax year;
• 50% reduction in the rate of IRPC Tax from 11th to 15th tax year;
• 25% reduction in the rate of IRPC for the remaining life of the project.