We hereby inform the business community and other interested parties that Law No. 9/2025 of 29 December, which amends and republishes Law No. 5/2009 of 12 January that creates the Simplified Tax for Small Taxpayers (ISPC), has been approved. 

As part of the amendments, the following key changes are highlighted:

i) The scope of the ISPC has been expanded to include small-scale forestry, fishing, livestock, poultry, and beekeeping activities, including handicrafts. 

ii) The turnover threshold for eligibility under the ISPC regime has been increased from the previous MZN 2,500,000 (two million five hundred thousand meticais) to MZN 4,000,000 (four million meticais). 

iii) The ISPC is no longer applicable to taxpayers who:

• Hold equity participations in other commercial companies under the ISPC regime;
• Hold equity participation in public limited companies or other entities where partners/shareholders cannot be identified;
• Engage in activities other than silviculture, fishing, livestock, agriculture, poultry, beekeeping, industrial or commercial activities;
• Distribute their activity across multiple establishments;
• Provide services to the same entity for more than 183 days within one year. 

iv) The definition of a taxable person under the ISPC has been extended to include natural persons who, without conducting a specific activity, perform any taxable transaction, provided that such transaction meets the incidence requirements of the Personal Income Tax (IRPS). 

v) Taxpayers under the ISPC who waive exemptions from the VAT, IRPS, and Corporate Income Tax (IRPC) are now required to remain within these taxes for a minimum period of three years. 

vi) The tax period for ISPC has changed to a quarterly basis, replacing the previously applied annual basis. 

vii) In place of the former fixed annual rate of MZN 75,000 and the optional 3% of turnover, progressive tax rates are introduced as follows:

• 3% – annual turnover equal to or below MZN 1,000,000;
• 4% – annual turnover above MZN 1,000,000 and equal to or below MZN 2,500,000;
• 5% – annual turnover above MZN 2,500,000 and equal to or below MZN 4,000,000. 

viii) Fixed rates have been introduced for certain sectors, as follows:

• 12% – individuals or entities providing services such as plumbing, carpentry, masonry, electrical work, barbering, gardening, mechanics;
• 15% – individuals or entities providing services in liberal professions (e.g., lawyers, economists, geologists, engineers, accountants);
• 20% – on the portion of turnover exceeding the maximum limit for the period. 

ix) If activities span more than one sector, the applicable tax rate  will be the rate corresponding to the highest taxed activity.

x) Taxpayers under the ISPC must now issue invoices or equivalent documents for each transaction (sale of goods or provision of services),and keep records. For equivalent documents, invoices must be: issued in the national language and currency, dated, sequentially numbered, and contain:

• The name and Tax Identification Number (NUIT) of the parties;
• The quantity and usual description of goods supplied or services provided, and the related price.

xi) Whenever ISPC taxpayers acquire goods or services from natural persons not registered for tax purposes, and up to an annual global limit of MZN 2,500,000, they are obliged to:

• Issue an invoice on behalf of the supplier, containing all legally required elements under the VAT Code;
• Withhold tax at a 5% final withholding rate and remit it to the Tax Authority. 

xii) The professions of lawyers, engineers, accountants, and consultants may remain in the ISPC regime for a maximum of 5 years.

xiii) An exemption from ISPC payment is introduced where, after applying the tax rates on sales or services, the resulting tax payable is less than MZN 500 (five hundred meticais). 

These amendments are in force since January 1, 2026.