Malawi

Individual - Other taxes

Last reviewed - 04 March 2020

Presumptive tax

The Taxation Act provides for presumptive tax on persons with commercial motor vehicles of seating capacity of up to 33 passengers. The applicable annual presumptive tax amounts are:

  • MWK15,000 for motor vehicles of up to 16 seats; and
  • MWK20,000 for motor vehicles of above 16 seats and up to 33 seats.

Social security contributions

Under the National Pension Scheme (NPS), an employee contributes a minimum of 5% of the pensionable emoluments while the employer contributes at least 10% of the employee's pensionable emoluments. Contributions by the employer are tax deductible up to a maximum of 15% of the employee's pensionable emoluments while those made by the employee are not.

Upon withdrawal, through retirement, all the benefits are exempt from income tax. This is applicable whether they are received as a lump sum or as an annuity.

Consumption taxes

Value-added tax (VAT)

VAT is applicable on taxable goods and services. There are three classes of supplies for VAT:

  • Taxable supplies (at the rate of 16.5%).
  • Zero-rated supplies.
  • Exempt supplies.

See the Other taxes section in the Corporate summary for more information.

Net wealth/worth taxes

There are no net wealth/worth taxes in Malawi.

Local taxes

City rates on property are charged depending on the value of property.