Malawi

Overview

Last reviewed - 04 March 2020

Malawi, a landlocked country in Southeast Africa, is bordered by Zambia to the northwest, Tanzania to the northeast, Lake Malawi to the east, and Mozambique to the east, south, and west. Malawi gained independence in 1964 and has a multiparty, democratic government. It is divided into 28 districts, with Lilongwe as the capital. The official languages of Malawi are English and Chichewa, and the currency is the kwacha (MWK).

Malawi ranks among the world's most densely populated countries. The economy is predominately agricultural, with about 80% of the population living in rural areas. Agriculture accounts for more than one-third of gross domestic product (GDP) and 90% of export revenues. The performance of the tobacco sector is the key to short-term growth, as tobacco accounts for more than half of exports.

PwC Malawi supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms. Our advice covers all aspects of Southern African direct taxes, indirect taxes, and exchange control regulations. Our experienced team of advisers can assist with managing tax risk and controlling and minimising tax burden by providing innovative and practical tax and business solutions in the areas of corporate, international, and indirect taxes, as well as human resource services.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%) 30
Corporate income tax (CIT) due dates
CIT return due date Within 180 days after the end of the financial year.
CIT final payment due date Upon submission of an income tax return (i.e. within 180 days after the end of the financial year).
CIT estimated payment due dates CIT estimated payments are due quarterly and payable by the 25th day of the month following the end of the quarter.
Personal income tax (PIT) rates
Headline PIT rate (%) Residents: 30 (business income) and 35 (employment income);
Non-residents: 15
Personal income tax (PIT) due dates
PIT return due date Within 180 days after the end of the financial year.
PIT final payment due date Within 180 days after the end of the financial year.
PIT estimated payment due dates PAYE is payable on a montly basis.
For business income, provisional tax is paid on a quarterly basis.
Value-added tax (VAT) rates
Standard VAT rate (%) 16.5
Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy) Resident: 10 / 20 / 20;
Non-resident: 15 / 15 / 15
Capital gains tax (CGT) rates
Corporate capital gains tax rate (%) Capital gains are subject to the normal corporate rate.
Individual capital gains tax rate (%) Capital gains are subject to the normal PIT rate.
Net wealth/worth tax rates
Headline net wealth/worth tax rate (%) NA
Inheritance and gift tax rates
Inheritance tax rate (%) NP
Gift tax rate (%) NP

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.