MRA engages Zomba SMEs on taxation
The Malawi Revenue Authority (MRA) engaged Small and Medium Enterprises (SMEs) in Zomba District over the weekend to brief them on various taxation issues to enhance tax education and improve tax compliance.
This was on invitation from National Bank of Malawi (NBM) which has organized a series of business training workshops for SMEs under the theme “Enhancing Business Value through Partnership”.
During the business training workshop, officers from MRA made two tax presentations on Domestic Taxes and Customs and Excise. Making his presentation on Domestic Taxes, Newton Chiundira encouraged the SMEs to register for taxes which Government uses for implementing various socio –economic development programmes.
He said such taxes include Business Tax, Pay as You Earn (PAYE), Value Added Tax (VAT), Withholding Tax and Fringe Benefit Tax (FBT).
“The following documents would be required when registering for tax; Business registration certificate, Valid ID, Articles of association if it is a limited company. A tax registration application form will be given to you to fill and registration is completed within a very short period of time,” he said.
He said under the new tax measures, the first K30, 000 per month or K360, 000 per year would be taxed at zero percent or there would be no tax deducted.
“The next K5, 000 per month or K60, 000 per year would be taxed at 15 percent and the excess of K35, 000 but not exceeding K3 million would be taxed at 30 percent. The excess over K3 million would be taxed at 35 percent,” he said.
He said compliant taxpayers have access to Tax Clearance Certificates (TCCs) and Withholding Tax Exemptions Certificates which would allow them to be awarded contracts and be exempted from being deducted Withholding Tax, respectively.
Making his presentation on Customs and Excise, Innocent Chilomo encouraged the SMEs to take advantage of various trade agreements including SADC, COMESA and the Malawi/Zimbabwe trade agreement.
“Goods that qualify under these trade agreements are only those that are grown, produced or manufactured in Malawi. You can also import goods from SADC and COMESA duty-free provided the goods are produced or manufactured within SADC or COMESA,” he said.
He also encouraged the SMEs to take advantage of personal rebate, a personal allowance of K300, 000 that is granted to a traveler who is importing goods into the country for personal use only.
“A traveler who has been out of the country for more than 24 hours is entitled to personal rebate but the goods imported are for personal use only. When two people are travelling together as a family, each one of them is allowed K300, 000 personal rebate. Personal rebate is not allowed on commercial or unaccompanied goods,” he said.
NBM will hold similar business training workshops for SMEs in Rumphi, Mulanje, Nchalo, Salima, Ntchisi and Kasungu before the end of the year.
By Wadza Otomani