Page 42 - 40th Summit Brochure 2020

with Mozal (Mozambique Aluminium). years, from a deduction of 5% of the total
Specifically, the emphasis is placed on the coal investment realised in effect through col-
regions of Moatize, heavy sands of Moma, the lection of the IRPC, up to the convergence
hydrocarbon cluster of Palma in Cabo Del- of the latter, as regards the activity under-
gado, and domestic demands that grow at the taken under the project, while 10 percent
same rate as the population, urbanization, in- is offered in all other provinces.
dustrialization, development of rural areas,
hubs of agricultural development and tourism
throughout the country. SPECIFIC REGIMES
Trade and industry in rural areas
III. TOURISM More specifically there is exemption from pay-
With regard to tourism, the commitment is to ment of customs duties and VAT on imports of
facilitate existing potential, promoting leisure, equipment rated under class "K", as well as other
beach, business and historical-cultural imports that are critical and strictly necessary for
tourism, exposing the country as a privileged the pursuit of the activity. These regimes apply
destination for tourism and the promotion of to such specific areas as trade and industry in
sectoral links that stimulate greater demand rural areas, manufacturing and assembly plants,
for goods and services and, subsequently, em- agriculture and fisheries (which also benefit
ployment and income. from a reduction of 50% in Corporate Income
The potential for tourism covers the entire Tax Code (IRPC) from 2016 until 2025), and ho-
country, and it includes several dimensions: tels and tourism.
(i) Coastal and Marine Resources with ex-
ceptional tropical waters and beaches of
excellent quality in the South of the In the area of Hotels and Tourism:
country; • Rapid Development Areas (ZRD) where
(ii) Natural Resources based on nature and investments located in the ZRD benefit, for
wildlife in the Central Zone with the 5 fiscal years, from a tax credit of 20% of
Gorongosa and Chimanimani Reserves, the total investment realised, to be de-
and in the North of the country, from ducted upon IRPC collections, up to the
the Indian Ocean to Lake Niassa, in- convergence of the latter; and
cluding the Quirimbas Archipelago and • Special Economic Zones (ZEE), which also
Mozambique Island, as well as the Ni- benefit from exemption from payment of 39
assa National Reserve, which is the import duties (including Value Added Tax)
country’s largest conservation area; on construction materials, equipment, acces-
(iii) Cultural Resourcesare evident through- sories, parts and other goods intended for
out the country in the unique identity of the pursuit of the licensed activity in ZEEs
the people and culture in the Northern, and the IVA exemption internal procure-
Central and Southern areas, which are ment transactions.
an authentic cultural, linguistic and eth-
nic mosaic.
Investments in this sector offer opportu-
nities for new infrastructure such as passenger GUARANTEES FOR INVESTMENT IN
airports and ports, leveraging economies of MOZAMBIQUE
scale and appeal in a combination of beach • Legal protection of goods and rights, in-
tourism and animal reserves. Inhambane, cluding industrial and intellectual property
Pemba and Lichinga are the airports that offer rights;
this opportunity. • Equal treatment of National Direct Invest-
ment (NDI) and Foreign Direct Invest-
ment (FDI);
INVESTMENT INCENTIVES IN • Fair and equitable compensation in case of
MOZAMBIQUE expropriation of assets and investment
The Investment Law provides the following: rights authorized and carried out in accor-
• General tax and customs holidays through dance with the law;
exemption from payments of customs du- • Transfer of funds overseas (profits, royal-
ties and VAT on capital goods rated under ties, repayment of loan interest, foreign
class "K" of the customs tariffs and relevant capital invested and re-exportable, etc;)
accompanying parts and accessories. • Arbitration based on international rules
• Tax Credit for investments which are made (ICSID), International Chamber of Com-
in the city of Maputo, benefit for five fiscal merce, etc.