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Country Overview
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Capital City:
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Lilongwe
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Chief of State:
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Bingu wa MUTHARIKA
President since 2004
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Head of Government:
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Bingu wa MUTHARIKA
President since 2004
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Area (sq km):
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2,881 (land & water)
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Population:
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n/a
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Revenue Overview
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Revenue Authority:
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Malawi Revenue Authority
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Administration Head:
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Mr L. A. MUHARA
Commissioner General
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Institution Address:
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*
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Private Bag 247
Blantyre, Malawi
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(
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Mobile:
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+265 88 882 2303
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'
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Phone:
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+265 1 822 588
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7
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Fax:
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+265 0182 2302
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;
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e-Mail:
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lmuhara@mra.mw
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Country Correspondent:
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Mrs Roza MBILIZI
Director: Policy Planning Research
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Contact Details:
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(
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Mobile:
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+265 88 895 2119
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'
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Phone:
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+265 1 822 588
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7
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Fax:
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+265 0182 2302
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;
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e-Mail:
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rmbilizi@mra.mw
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Country Correspondent:
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Mr Steven KAPOLOMA
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Contact Details:
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;
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e-Mail:
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kapoloma@mra.mw
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Tax Rate Overview
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Personal Income Tax:
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Tax Year:
1 July to 30 June
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Tax Rate:
Progressing to 30%
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The first MWK 108,000 of annual income in Malawi is tax free. Thereafter, the next MWK 36,000 is taxed at 15% and the excess at 30%.
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An individual is resident if he/she is present in Malawi for an aggregate of 183 days in any year of assessment. The tax authorities will look to the specific facts and circumstances on a case-by-case basis in the determination of whether the nonresident tax (15%) or PAYE applies (rates up to 30%).
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Corporate Tax:
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Tax Year:
1 July to 30 June, but a Malawi company may adopt any date as its accounting year end. All taxable income is taxed in the fiscal year in which the accounting year ends (except for July and August year ends that are normally dated back to the previous fiscal year).
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Tax Rate:
30% for Malawi-registered companies and 35% for branches of foreign companies.
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An annual tax return must be filed and any balance of tax paid within 180 days of the company's year end. Provisional tax is due quarterly within 30 days of each quarter end. By the end of the fourth quarter, 90% of the final tax liability must be paid. Agricultural entities and other seasonal income earners may agree on a more equitable provisional tax schedule with the authorities.
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Consumption Tax:
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Nature of the Tax:
Value Added Tax (VAT)
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Tax Rate:
16.5%
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Filing & Payment:
A monthly VAT return and payment is due not later than the 25th day of the month immediately following the month to which the return relates. A late payment penalty is based on interest at 15% of the unpaid VAT and a further 5% per month or part thereof for the period the tax remains unpaid.
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A zero VAT rate applies to items such as exported goods and services, fertilisers, various agricultural machinery and vehicles. Exempt supplies include most unprocessed and preserved agricultural products, and certain essential items for health, education and nutrition. Banking services are also exempt, as is the rental of residential property.
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Economic Overview
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GDP per capita (PPP) %:
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n/a
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Tax to GDP Ratio %:
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n/a
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Inflation Rate %:
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n/a
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Currency:
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Malawian Kwacha
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