Individual - Other taxes

Last reviewed - 21 April 2023

Social security contributions

Under the National Pension Scheme (NPS), an employee contributes a minimum of 5% of the pensionable emoluments while the employer contributes at least 10% of the employee's pensionable emoluments. Contributions by the employer are tax deductible up to a maximum of 15% of the employee's pensionable emoluments while those made by the employee are not.

Upon withdrawal, through retirement, all the benefits are exempt from income tax. This is applicable whether they are received as a lump sum or as an annuity.

Consumption taxes

Value-added tax (VAT)

VAT is applicable on taxable goods and services. There are three classes of supplies for VAT:

  • Taxable supplies (at the rate of 16.5%).
  • Zero-rated supplies.
  • Exempt supplies.

See the Other taxes section in the Corporate tax summary for more information.

Net wealth/worth taxes

There are no net wealth/worth taxes in Malawi.

Presumptive tax

The Taxation Act provides for presumptive tax on persons with commercial motor vehicles of seating capacity of up to 33 passengers. The applicable annual presumptive tax amounts are:

  • MWK 15,000 for motor vehicles of up to 16 seats.
  • MWK 20,000 for motor vehicles of above 16 seats and up to 33 seats.

Local taxes

City rates on property are charged depending on the value of property.