What is the closure of accounts of a company?

To close the accounts of a company is to implement a set of procedures for the end of exercise and focus on the facts that occurred between the balance sheet date and the date of issuance of the financial statements.

What comprises a set of financial statements?

A complete set of Financial Demonstrations for the business sector includes:
- Balance sheet
- Income statement
- Demonstration of changes in financial position
- Cash flow statement
- Management reports

What instrument regulates the accounting system of the companies in Mozambique?

Accounting System for Business Sector in Mozambique (SCE) was created by Decree 70/2009 of 22 December based on International Financial Reporting Standards (IFRS) applicable to large and medium enterprises and with some adjustments the General Accounting Plan (PGC) approved by Decree No. 36/2006 of 25 July for the remaining companies.

Is there an official chart of accounts for Mozambique

Yes

What are the general characteristics of VAT in Mozambique?

The VAT is applied to all goods and services at a rate of 17% and is inclusive of all stages of the production process. There are provisions for deduction when transactions are processed between taxable entities entitled to deduction. It is non-cumulative such that there is no overlap and is not related to taxes already paid.

What are some characteristics of the VAT reimbursement process in Mozambique?

To be answered

How is the corporate tax - IRPC - calculated?

It is calculated based on the tax paid in relation to the previous exercise, corresponding to 80% of the amount and paid in three (3) equal installments.

When is the IRPC paid?

When the financial year of the business corresponds with the calendar year, it is paid in May, July and September. If the financial year is different, it is paid in the 5^th, 7^th and 9^th month.

What is the difference between the commercial and financial discount?

The financial discount is granted upon a future specific condition agreed between the seller and the buyer at the business transaction. The value of the cash discount should not be mentioned on the invoice. On the other hand, the commercial discount does not depend on any future specific condition. It is granted on the date when the commercial business is done as mentioned on the invoice or equivalent document.