Mozambique: CTA welcomes extended tax clearance certificate validity

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Mozambique: CTA welcomes extended tax clearance certificate validity

9:00 CAT | 14 Jun 2023

The Confederation of Economic Associations (CTA) of Mozambique, the largest employers’ organisation in the country, said today that the government’s extension of the tax clearance certificate validity had eliminated “an obstacle” to doing business.

The executive’s decision “represents a flexibility of the process” with “reduction of time and procedures required to do business in Mozambique”, a note from the CTA reads.

The previous three-month validity period of the certificate – now extended to 12 months – had constituted an obstacle to the hiring of foreign labour, due to delays and the involvement of multiple institutions, the CTA said.

It was usual for the document to expire during the process of hiring a foreign worker, with the entrepreneur forced to request a new certificate, rendering the operation slow and bureaucratic, the note reads.

The new guideline comes in the context of facilitating the business environment in the country, João Macaringue, deputy coordinator of the office responsible for implementing the Economic Acceleration Package (PAE), told Lusa.

Another example sees companies no longer being required to present a new tax discharge certificate for each public tender for contracting public works, the supply of goods and provision of services to the state, with one single document now valid for a year.

The PAE was announced by President Filipe Nyusi in August, 2022, and constitutes a set of 20 fiscal, administrative and financial measures aimed at making life easier for companies and boosting the country’s growth.

Source: Lusa