Tax
Taxation Act with a 30 per cent company rate and 16.5 per cent VAT
The Taxation Act (Cap 41:01) charges income tax on a source basis, with the standard company rate at 30 per cent and 35 per cent for branches of foreign companies. VAT is 16.5 per cent under the Value Added Tax Act. The Malawi Revenue Authority administers both.
Key rules
- Jurisdiction — The Malawi Revenue Authority assesses; objections to the Commissioner General; appeals to the Revenue Appeals Tribunal and then the High Court.
- Deadline — Company return: within 180 days of financial year end
- Deadline — Provisional tax: quarterly instalments
Governing law
- Taxation ActCap 41:01
- Value Added Tax Act 2005
- Malawi Revenue Authority ActCap 39:07
In practice
The higher 35 per cent rate on foreign branches, against 30 per cent for locally incorporated subsidiaries, is a deliberate incentive to incorporate locally and is the first structural question in any Malawian inbound investment.