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 (%)|
|Payment of more than MWK 60,000 per annum for any supplies to traders and institutions||3|
|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 35,000 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|
|Winnings on betting and gambling, including lotteries||
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
- See Non-resident tax in the Taxes on corporate income section.
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.