OpenAccountants/Malawi/Malawi Corporate Income Tax

Malawi Corporate Income Tax

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: corporate income tax for Malawi (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Source-cited draft· Last updated Jun 25, 2026

Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.

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Key figures — Malawi, 2025

Every figure is drawn from this Tax Guide and cited to its source.

Standard corporate income tax rate (resident company)

30%Taxation Act (Chapter 41:01)

Branch / permanent establishment of a foreign company

30% (reduced from 35% per the 2025/2026 Budget)Taxation Act (Chapter 41:01)View source ↗

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)View source ↗

Tax base

Taxable income = gross income from a Malawi source less allowable deductions and capital allowancesTaxation 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)Taxation Act (Chapter 41:01)

Withholding tax on dividends

10% (final tax)Taxation Act (Chapter 41:01), Fourteenth ScheduleView source ↗

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)Taxation Act (Chapter 41:01), Fourteenth ScheduleView source ↗

Withholding tax on royalties

20% (non-resident); resident royalties also subject to WHT (approx — confirm resident vs non-resident split)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 projectTaxation Act (Chapter 41:01)

Corporate return filing & balance payment

Within 180 days of the financial year endTaxation Act (Chapter 41:01)View source ↗

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)View source ↗

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full Guide

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))

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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))