Mozambique: 90 days for companies to claim forgiveness of fines and reduction of interest on INSS debts arrears

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Mozambique: 90 days for companies to claim forgiveness of fines and reduction of interest on INSS debts arrears

3:56 CAT | 05 May 2020

Photo: A Verdade

Mozambican companies liable for overdue contributions to the Mandatory Social Security System have 90 days, from the 23rd of April, to benefit from the forgiveness of fines and reduction of interest on late payment.

The forgiveness and reduction regime covers small and medium enterprises linked to the National Institute of Social Security (INSS); companies that, for any reason, never enrolled in the Mandatory Social Security System; and companies with compulsory debt collection cases (currently amounting to 2.5 billion meticais) pending.

Decree 22/2020 states that the forgiveness of fines and reduction of interest on late payment “is granted on condition that the taxpayer proceeds to pay in full the outstanding contributions that gave rise to the application of fines and interest on late payment”.

“The taxpayer who makes full payment of contributions benefits from total forgiveness of fines, and reduction of interest on arrears by 98 percent,” the decree to which @Verdade has had access determines, going on to reveal that the taxpayer may request payment by instalment, providing the full amount is paid by December 31 of this year.

Source: A Verdade