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MW

Malawi

Eastern Africa MWK

MW · MWI · #98 · 8 cities

Nomad score 47/100 Compare
Top income tax 40.0% Worldwide system
Corporate tax 40.0%
VAT 17.5% standard rate
Tax residency 183 days 6 tax treaties

Malawi tax profile

Data year: 2026

Tax system
Worldwide Residents are taxed on worldwide income. Companies are generally taxed on Malawi-source income; foreign-source corporate income is exempt. Standard VAT is 17.5% from 1 January 2026 (previously 16.5%). Large companies with turnover above MWK 5 billion and at least three years of operations may pay minimum alternative tax at 0.5% of turnover if that exceeds normal CIT. Branches of foreign companies remain subject to a 35% rate under the general Taxation Act (not modelled in headline CIT brackets).
Top PIT rate
40.0%
Corporate tax rate
40.0%
VAT
17.5%
Capital gains tax
--
Social security (employee)
5.0%
Social security (employer)
10.0%
Dividend withholding
10.0%
Interest withholding
20.0%
Royalty withholding
20.0%
Treaty count
6
Tax authority: Malawi Revenue Authority Website

Income tax brackets

Corporate
Corporate brackets
Bracket min Bracket max Rate USD equivalent
MWK 0 MWK 5,000,000,000 30.0% $0 – $2,870,000
MWK 5,000,000,001 and above 40.0% $2,870,000 +
Personal income
Personal income brackets
Bracket min Bracket max Rate USD equivalent
MWK 0 MWK 2,040,000 0.0% $0 – $1,171
MWK 2,040,001 MWK 18,840,000 30.0% $1,171 – $10,806
MWK 18,840,001 MWK 120,000,000 35.0% $10,806 – $68,880
MWK 120,000,001 and above 40.0% $68,880 +
Local currency: MWK

Tax residency

Days threshold
183 days
Residency rules
An individual is resident if present in Malawi for an aggregate of 183 or more days in the year of assessment, or if they meet other statutory tests (for example Malawian-incorporated companies and certain trusts). Non-residents are taxed on Malawi-source income; section 76A imposes a 15% final tax on certain gross payments to non-residents without a permanent establishment.
Exit tax
No
CFC rules
No

Filing information

Fiscal year
01-01 – 12-31
Filing deadline
180 days after year end
Employers withhold PAYE monthly and remit by the 14th of the following month. Employees receive annual PAYE certificates (Form P9); employers file annual PAYE returns (Form P16). Personal income tax returns are due within 180 days after the end of the year of assessment. Companies file within 180 days after their year of assessment and pay provisional tax quarterly.

Sources

Change history

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

    • Brackets updated

    Refreshed 2026 rates, brackets, WHT, pension, VAT, sources and prose from MRA and Taxation Act amendments (https://www.mra.mw/admin/storage/download_files/1774423425_NEW%20TAX%20MEASURES%20UNDER%20AMENDED%20TAXATION%20AND%20VALUE%20ADDED%20TAX%20LAWS%20%20March%202026.pdf) Source

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