Tevet Levy Compliance

Last Updated: 10 December, 2019 - Print

To download the Employer Data Form (EDF) click HERE

The Malawi Revenue Authority (MRA) started collecting Tevet Levy on 1st November, 2015. This followed the signing of a Memorandum of Understanding (MOU) with the Technical, Entrepreneurial and Vocational Education and Training Authority (TEVETA).

This new TEVET Levy collection approach is expected to enhance the levy collection base and enable TEVETA to fulfill its mandate with efficiency and also enable it to concentrate on its core function of regulating and facilitating the provision of technical, entrepreneurial and vocational education and training in Malawi.

So what are the benefits of being TEVET Levy compliant?  Payment of the TEVET Levy is a legal requirement which every good corporate citizen must comply with. The TEVET Act offers compliant employers eligibility to enjoy some benefits.

Compliant employers have access to quality assured training programmes and short courses aimed at meeting specific needs of employees. Such employers can also be reimbursed up to 20 percent of their total direct training cost of any TEVETA approved in-house training provided the percentage is not more that 20 percent of the total TEVET Levy paid in the previous year.
Again any levy imposed and paid under the TEVET Act, is deductible under income tax in accordance with the Taxation Act.

Much as compliant employers enjoy the benefits highlighted above, there are stiff penalties against non-compliant employers. As stipulated in the TEVET Act, Section 21 (1), an additional sum of 20 percent of unpaid TEVET Levy shall become due and be payable by an employer by way of penalty.

Any levy penalty payable by an employer shall be a debit due to TEVETA and may be recovered from such employers as a civil debt by way of summary suit.

Employers are therefore encouraged to be TEVET Levy compliant to avoid penalties and litigation. Employers are also encouraged to keep and maintain up-to-date records of basic payroll at their principal place of business.

Employers are obliged to submit duly completed Employer Data Form (EFD) with summarized payroll information of their previous financial year from July to June.