Malawi

Corporate - Withholding taxes

Last reviewed - 15 July 2020

Dividend WHT

Dividend WHT is a final tax and is charged at 10%. The dividend is not included in the taxpayer's taxable income, and the WHT is not deducted from the taxpayer's tax liability.

Resident WHT rates

Nature of payment WHT rate (%)
Royalties 20
Rents 20
Payment of more than MWK 60,000 per annum for any supplies to traders and institutions 3
Commission 20
Payment for carriage and haulage 10
Payment to contractors and subcontractors in the building and construction industries 4
Payment for public entertainment 20
Payment of more than MWK 15,000 for casual labour 20
Tobacco sales of less than 1,200 kilograms or 10 bales sold at auction floors 0%
Tobacco sales of more than 1,200 kilograms or 10 bales sold at auction floors 3%
Tobacco sales through farmer clubs at auction floors 0%
Services 20
Bank interest 20
Fees 20

Non-resident tax (WHT on income due to non-residence)

Income sourced from Malawi but not attributable to a PE in Malawi is subject to a final WHT as follows:

  • 10% on income derived from a mining project as interest, royalty, payment for independent personal services, or dividend.
  • 15% on all other income.

Non-resident WHT treatment under tax treaties

Recipient WHT (%)
Dividends Interest Royalties Rent Management fees
Non-resident (1) 15 15 15 15 15
Treaty:          
France 0 0 0 15 0
Norway 5 10 5 15 0
South Africa 10 15 0 0 15
Sweden 0 0 0 15 0
Switzerland 0 0 0 15 0
United Kingdom 0 0 0 15 15

Notes

  1. See Non-resident tax in the Taxes on corporate income section.

WHT exemption

There is WHT exemption on local supplies for compliant resident taxpayers. A ‘compliant taxpayer’ is defined as one that has settled all their tax liabilities with the tax authorities, including customs and excise.