Legal and Tax Treatment of NGOs Operating in the Agricultural Sector in Mozambique: An Analysis of the Association for Sustainable Development “ABIODES” (2017–2021)
Keywords:
NGOs, Taxation, SustainabilityAbstract
This article, entitled “Legal and Tax Treatment of NGOs Operating in the Agrarian Sector in Mozambique: An Analysis of the Association for Sustainable Development (ABIODES) (2017–2021)”, examines the challenges faced by non-governmental organizations (NGOs) in fulfilling their tax obligations within a context marked by the absence of a specific legal and tax framework in Mozambique. Despite their significant role in promoting agrarian development, NGOs are often required to comply with tax rules designed for profit-oriented entities. The central research problem is to understand how the lack of tailored tax legislation affects the tax compliance of NGOs. The main objective was to assess the impacts of this legal gap on the legal-tax treatment of NGOs, using the Association for Sustainable Development (ABIODES) as a case study, with particular focus on Value Added Tax (VAT), Personal Income Tax (IRPS), and Corporate Income Tax (IRPC). A qualitative methodology was adopted, based on documentary analysis, semi-structured interviews with the organization’s accountant, and an examination of the applicable tax legislation. The results indicate that the absence of an adequate tax regime leads to disproportionate tax burdens, including non-recoverable VAT, taxation of remuneration under IRPS, and complex declarative obligations related to IRPC, without corresponding tax benefits. The study concludes that the establishment of a specific legal and tax framework for NGOs is essential to promote tax fairness, transparency, and financial sustainability, recommending also the strengthening of technical capacity and specialized tax advisory services.
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Legislação Usada
Lei no 8/91 de 18 de Julho (Lei do Direito a Livre Associação)
Lei n.º 7/2014, de 28 de Fevereiro (Lei das Organizações Não-Governamentais)
Lei no 34/2007, de 31 de Dezembro (Código do Imposto Sobre o Rendimento das Pessoas Colectivas).
