04/01/2026
CSS|Chiyambi supporting services
TAXATION
Understanding Taxation in Malawi.
As taxpayers and business owners, understanding how taxation works in Malawi helps us stay compliant, plan better, and avoid penalties.
Who Collects Tax in Malawi?
Taxes in Malawi are administered by the Malawi Revenue Authority (MRA) under tax laws such as the Taxation Act and VAT Act.
Main Types of Taxes in Malawi
1. Personal Income Tax (PAYE)
This applies to salaries and wages and is progressive (higher income = higher tax rate).
• Income up to MWK 170,000 – No tax
• Higher income levels are taxed between
30% and 40%, depending on earnings
Employers deduct PAYE and remit it to MRA.
2. Corporate Income Tax
Resident companies: 30%
Applies to business profits
Some priority sectors may qualify for tax incentives
3. Withholding Tax
Tax deducted at source on payments such as:
•Professional fees
•Dividends
•Interest
•Royalties
Note: Rates vary depending on the type of payment.
4. Value Added Tax (VAT)
Standard VAT rate: 17.5%
Charged on most goods and services
VAT-registered businesses must charge VAT and submit returns to MRA
5. Customs & Excise Duties
Applied on imported goods
Excise duty applies to specific items like alcohol and to***co
Why Paying Tax Is Important
Taxes support:
•Healthcare
•Education
•Roads & infrastructure
•Public services
Paying tax is not just a legal duty, it’s a contribution to national development.
Need Help With Taxes?
If you need assistance with:
•PAYE calculations
•VAT registration & returns
•Business tax compliance
•Tax planning & advice
Contact us today +265 992 031 481 email [email protected]
we’re here to help you stay compliant and stress free.