Revenue Authorities in Mozambique said future sales of assets owned by foreign companies operating in the mining sector in Mozambique will be subject to a 32 percent capital gains tax, according to an unnamed at the department for Planning, studies and International Cooperation at the Revenue Authority.
The source said following a change in the law approved by Mozambique’s parliament, the 32 percent rate will be applied to all deals regardless of the period of the contract.
So far, the sales of assets in the country owned by foreign companies or groups have been taxed at a progressively lower rate based on the length of time they had been owned by those companies or groups.
This change to the law will be applied from January 1st, 2013, but will not be retroactively applied to deals that have already been concluded.
The new rate of 32 percent is substantially more than the 12.8 percent rate charged on capital gains in the sale of Irish company Cove Energy to Thai state group PTT Exploration & Production for $1.9 billion.
Oil groups Anadarko Petroleum from the United States and Italy’s ENI will be covered by the new law if they should decide to sell part of their stakes in oil blocks in the Rovuma basin, in northern Mozambique.
Source African Press Agency
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