GROW YOUR BUSINESS IN MOZAMBIQUE
Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost
Praxima Services Includes
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Full Payroll Outsourcing
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Hybrid Payroll Outsource
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International Payment Management
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Local Filing
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Social Security Filing
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Interact with Local Authorities
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Human Resources Management System
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Integration with all Accounting and Third Party
Software
Benefits of outsourcing to Praxima
Local Tax Compliance
Secure Data Transferring
Responsive Administrators
Increase Productivity
Industry Experts
Running Your Payroll
Focus on Your
Core Business
Comply with Local and International Payroll Standards in Mozambique
Payroll in Mozambique
Employers are required to withhold tax on the monthly remuneration paid to their employees. Residents are taxed on their worldwide income. Non-residents are only taxed their income earning within Mozambique. Non-Mozambican residents are taxed on their income at a flat rate of 20%. Mozambique's tax year is a calendar year.
TAX RATES | 2022
MZN Tax Rates
0-42,000 10%
42,001-168,000 15%
168,001-504,000 20%
504,001-1,512,000 25%
over 1,512,000 32%
SOCIAL SECURITY | 2022
An employee is required to contribute 3% of their monthly salary to the social security system while the employer contributes 4% of the employee's monthly salary. A foreign employee can apply for an exemption from the social security system, provided that the employee contributes to a similar system in their home country.
STATUTORY FILING | 2022
Since January 2014, a family unit can no longer be taxed jointly for their earned income.
From 2018 all taxpayers whose only source of income is from employment and whose income is subject to withholding tax will not be required to submit a return.
Employers withhold the employees' income taxes monthly in accordance with the tax rates approved by law and remit such taxes to the Finance Department before the 20th of the following month
Taxable Income
The individual income tax code has a broad concept of remuneration and covers all payments for work carried out in Mozambique. This includes individual income, such as employment income, independent income, commissions, capital gains, investment income and rental income are taxable.
All fringe benefits in cash or kind including the use of company-paid vehicles and houses are taxable.
Tax Resident
An individual is considered a resident for tax purposed should he/she resides in Mozambique more than a 180 days per tax year, or resides in the country for a shorter period and occupies a residence on the 31 December under circumstances that indicates that he/she has the intention to continue to occupy on a permanent basis.
Your HRMS is Standard
Employee Self-service
Payslip and tax certificate retrieval. Updating of personal particulars. Leave request and balance enquiries
Records
Employee documents folder. Training records. Heath & Safety records. Disiplinary records. Qualifications, resume and hiring records.
Work Flow
Workflow with different approval levels. Full work flow functionality for leave requests, expense and time-sheets
PAYMENTS, REPORTING & FILING
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Direct payment into employee bank accounts. Emailed password protected pay slips.
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Payment of taxes, benefit providers and other creditors.
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Filing of returns to the authorities.
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Generation and filing of statutory reports.
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General ledger and 100's of customisable reports.
