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Malawi
Corporate - Withholding taxes
Last reviewed - 17 September 2024Dividend 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 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 |
| Services | 20 |
| Interest | 20 |
| Fees |
20 |
| Winnings on betting and gambling, including lotteries |
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
- 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.
