After the cyclone IDAI on March 14 2019 , the Council of Ministers approved some tax benefits in the ambit of the reconstruction and recovery of the affected areas by the cyclone. The economic agents benefit from some advantages over income taxes, according to article 3, no. 1 and following, of Decree No. 27/2019, Approved on April 2, 2019, such as:
- Payment due date of IRPC related financial year 2018 was extended from May to December 2019. Payment can be made in monthly instalments, assuring that by December 2019 it’s fully paid;
- Exemption of payments on account (Pagamentos por Conta) during the financial year 2019.
These advantages also cover the economic agents subjected to IRPS, on the income of the second category (Corporate and Professional Income).
The advantages above mentioned are applied to the economic agents operating in the provinces of Sofala, Manica, Tete, Zambézia and Inhambane, in the areas affected by the cyclone, specifically:
- Sofala: City of Beira and districts of Caia, Gorongoza, Muanza, Dondo, Nhamatanda, Buzi, Machanga and Cheringoma;
- Manica: City of Chimoio and districts of Manica, Sussundenga, Gondola, Vanduzi, Macati and Mossurise;
- Tete: City of Tete and districts of Mutarara, Doa, Macanga, Moatize, Tsangano and Angónia;
- Zambézia: District of Chinde;
- Inhambane: Districts od Govuro and Vilanculos.
Considering that for the final tax calculation for the financial year 2019 in the mentioned areas there will be no deduction of payments on account (Pagamentos por Conta), the final amount of payment can be very high, however as a precaution, it is recommended that the estimated amount be kept in a specific account, and may even be applied as fixed deposits and generate income.
Fail on preparation is prepare to failure!
Karisma Boane, Finance Manager, 2iBi software