Malawi Tax Overview

Malawi tax system at a glance

Malawi taxes income under the Taxation Act (Chapter 41:01) and consumption under the Value Added Tax Act, both administered by the Malawi Revenue Authority (MRA). Figures below reflect the 2025 (2024/2025) year; note that PAYE bands and the VAT rate were changed by reforms taking effect at the end of 2025 / 1 January 2026, flagged where relevant.

• National tax authority — Malawi Revenue Authority (MRA) (Malawi Revenue Authority Act)
• Currency — Malawi Kwacha (MWK / MK) (Reserve Bank of Malawi Act)
• Standard tax/charge year — 1 April to 31 March (Year of assessment; companies may use an approved alternative accounting date) (Taxation Act (Chapter 41:01))
• Basis of taxation — Source-based; residents and non-residents taxed on income arising in or derived from Malawi (Malawi taxes primarily on a source basis rather than worldwide income) (Taxation Act (Chapter 41:01))
• Top personal income tax (PAYE) rate, 2024/2025 — 35% percent (Reform effective 1 Jan 2026 reintroduced a 40% top band (approx — confirm)) (Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE))
• Standard corporate income tax rate — 30% percent (Taxation Act (Chapter 41:01))
• Does Malawi have VAT? — Yes — VAT applies; standard rate 16.5% in 2025 (raised to 17.5% from 31 Dec 2025) percent (Value Added Tax Act (Cap 42:02))
• Corporate income tax return deadline — Within 180 days of the company's financial year end (Taxation Act (Chapter 41:01))
• PAYE remittance deadline — 14th day of the month following the month of deduction (Taxation Act (Chapter 41:01))
• Withholding tax remittance deadline — Within 14 days of deduction (Taxation Act (Chapter 41:01), Fourteenth Schedule)