Mozambique | Difference between Meal Allowances and Meal Benefits

Within Mozambique Income tax law specifically makes distinction between Meal Allowances and Meal Fringe Benefits which are taxed differently based on varying factors.

Meal Allowances are taxed by comparing the value of meal allowances against the company defined minimum wage and splits the taxability of the element between non-taxable and taxable.

Meal Allowances are deemed when any amount of money is spent in the hands of the employee for Meals during their duration of normal hours of work.

The meal allowance value will be reduced from the minimum wage result to establish the non taxable portion, and the values are split on the payslip of employees.

       

Meal Benefits are fully taxable as the meeting criteria is based on facilities made available to employees at their place of work during their normal hours of work , by example the company canteen or onsite meal services.

The fringe Benefit can be added either on the Payslip screen or recurring screen with the advised amount.

      

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