Domestic tax incentives
Malawi offers a wide range of tax
incentives with the aim of encouraging development, enhancing output,
earning and saving foreign exchange and expanding employment
These tax incentives are aimed at enabling
business establishments to grow and expand their operations thereby
contributing to the overall social-economic development of Malawi.
the end of 2016, we highlighted some general and specific Customs and
Excise tax incentives and now we would like to explain how you can take
advantage of general and specific domestic tax incentives.
Taxes are taxes collected from income generated within the geographical
confines of a country. In Malawi, such taxes include Income Tax, Value
Added Tax (VAT), Fringe Benefit Tax (FBT), Non-Resident Tax (NRT),
Withholding Tax on Dividends and Domestic Excise. Domestic Tax
Incentives in Malawi are mainly in form of tax exemptions against the
There are General and Specific Domestic Tax
Incentives. General Domestic Tax Incentives are accessible by every
taxpayer operating as a business person or business entity. There are
four General Domestic Tax Incentives in Malawi and they highlight how
businesses can carry forward their losses, how they can benefit from
capital allowances and how they can claim their expenditure on corporate
Conversely, Specific Domestic Tax
Incentives are sector specific and are accessible by a taxpayer
operating as a business person or business entity in that particular
sector. Specific Domestic Tax Incentives in Malawi cover four sectors
namely export, mining, agriculture and manufacturing.
next couples of weeks, we will explain in detail each of the General
Domestic Tax Incentives to allow taxpayers operating as a business
person or business entity to appreciate how they can benefit.
we will also take you through the Specific Domestic Tax Incentives to
allow taxpayers operating as a business person or business entity within
the export, mining, agriculture and manufacturing sectors to benefit as
well. Please visit our website
www.mra.mw/tax-update to read other articles we have published. We wish you a Happy and Prosperous New Year.
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