Malawi Corporate Income Tax

Corporate income tax rates and base

• Standard corporate income tax rate (resident company) — 30% percent (Taxation Act (Chapter 41:01))
• Branch / permanent establishment of a foreign company — 30% (reduced from 35% per the 2025/2026 Budget) percent (PE rate aligned to the resident 30% rate by the 2025/2026 Budget measures) (Taxation Act (Chapter 41:01))
• Minimum (alternate) tax on turnover — Higher of the 30% CIT or an alternate tax on turnover applies to companies with turnover above MK 5 billion in a continuous loss position over 3+ years (approx — confirm the turnover-tax percentage) (Taxation Act (Chapter 41:01))
• Tax base — Taxable income = gross income from a Malawi source less allowable deductions and capital allowances (Taxation Act (Chapter 41:01))
• Capital gains — Capital gains are included in taxable income and taxed at the normal company rate (30%) (approx — confirm treatment of indexed/inflation-adjusted gains) percent (Taxation Act (Chapter 41:01))
• Withholding tax on dividends — 10% (final tax) percent (Taxation Act (Chapter 41:01), Fourteenth Schedule)
• Withholding tax on interest (bank) — Bank interest is subject to WHT (final tax for individuals) (approx — confirm rate; commonly cited around 20% on bank interest) percent (Taxation Act (Chapter 41:01), Fourteenth Schedule)
• Withholding tax on royalties — 20% (non-resident); resident royalties also subject to WHT (approx — confirm resident vs non-resident split) percent (Taxation Act (Chapter 41:01), Fourteenth Schedule)
• WHT on non-resident payments (mining project income) — 10% on interest, royalty, independent personal services or dividend from a mining project percent (Taxation Act (Chapter 41:01))
• Corporate return filing & balance payment — Within 180 days of the financial year end (Taxation Act (Chapter 41:01))
• Provisional (quarterly) tax — Provisional tax paid quarterly; instalments must total at least 90% of the final liability (approx — confirm exact quarterly due dates) (Taxation Act (Chapter 41:01))