Mozambique | Local Municipality Tax / Imposto Pessoal Autárquico

Municipality Taxes are based on the employee's province and represent the minimum contribution of each resident to the public expenses of the municipality. This tax is required of all national or foreign individuals between the ages of 18 and 60 who are considered residents in the specific municipality. It is a fixed amount that is due once a year.

According to the Código Tributário Autárquico (CTA) – Article 12, the payment is due between January 2nd and December 31st. Articles 11, 13, and 14 further stipulate that taxpayers who also pay the IRPS (Personal Income Tax) should have their municipal tax contribution withheld by their employer from their salary.

The rates vary depending on the local municipality and can be obtained from the municipality itself. Therefore, the employer must contact the local municipality to obtain the applicable rate.

On Payspace, there is a component for Local Municipal Tax that can be used to process the IPA:

      

The component is an advised amount input type, and it can also be included as a recurring component on the recurring payroll component screen.

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