[Question] Doing Business with Mozambique - Withholding Tax

[davidbann]

Hi,

We are currently in the process of registering to provide services to a company in Mozambique.

In the template contracts that they have provided us, there is mention of withholding tax of between 10 and 20% for professional fees:

According to Mozambican tax law, a 10% or 20% withholding tax might be applicable on professional fees. The Client shall provide an official withholding tax certificate or any satisfactory documentary proof that the withholding tax has been remitted to the Mozambican fiscal.

Is this something that we need to build into our pricing? Will we definitely have withholding tax deducted from our invoices, or is there something we can do to prevent this?

Thanks
David

[Jddt]

Hi,

Based on some of the issues I have seen it is best to keep to foreign tax law, you can def build this into your pricing if you need to and the client is happy.

I would also just get the opinion of some registered auditors and a tax expert when it come to foreign tax law.

They could make it very difficult for you and your client should things go wrong.

Thanks