A corporate entity is considered a resident for tax purposes in Malawi if it has a PE in Malawi.
Permanent establishment (PE)
The Taxation Act defines a PE as 'an office or other fixed place of business through which business activity is carried on'. This short definition is wide in scope. Care must be exercised when considering this definition in situations that may be affected by a DTA. Each DTA contains a specific and far more detailed definition of what constitutes a PE.