Free invoice generator and tax tools for Malawi

The Malawi Revenue Authority (MRA) collects the national taxes a small business meets: income tax, VAT, PAYE and withholding tax on payments to others. Employers also owe the TEVET payroll levy, which MRA's e-payment platform has accepted since 1 October 2023. Pension contributions go to a pension fund rather than to MRA.

The latest rate changes took effect on 30 December 2025 under the Taxation (Amendment) and Value Added Tax (Amendment) (No. 2) Acts 2025. Companies pay 30% on taxable income up to K5 billion and 40% above it. Individuals pay nothing on the first K2,040,000 a year and 30% on the excess. PAYE on employment income is banded monthly: 0% on the first K170,000, 30% on the next K1,400,000, 35% on the next K8,430,000 and 40% above K10,000,000.

The same measures put a 0.05% levy, paid by the sender, on mobile-money transfers above K100,000 and on every transfer through a bank's electronic system. They also added a 0.5% Minimum Alternative Tax on companies with turnover above K5 billion and set a 15% withholding tax on all betting, gambling and lottery winnings, with no tax-free threshold.

Micro, small and medium businesses with annual turnover of up to K12,500,000 can pay Presumptive Tax, which replaced Turnover Tax and has applied since 1 April 2023. For April 2023 to March 2024 MRA set the tax by turnover band: nothing below K4,000,000; K110,000 a year (K27,500 a quarter) above K4,000,000 up to K7,000,000; K170,000 (K42,500) up to K10,000,000; and K225,000 (K56,250) up to K12,500,000. Instalments are due by the 14th of the month after each quarter. It does not cover rental income, management, professional or training fees, incorporated companies, or income already subject to final withholding tax. A business may opt out by written notice to the Commissioner General, and the ordinary income tax rules then apply. Registration is free, takes no more than two working days, and needs a National ID and a Business Registration Certificate.