To download the Employer Data Form (EDF) click HERE
The Malawi Revenue Authority (MRA) started collecting TEVET Levy on 1st November, 2015 following the signing of a Memorandum of Understanding (MOU) with the Technical, Entrepreneurial and Vocational Education and Training Authority (TEVETA). The signing of the MOU is part of Malawi Government’s Public Service Reforms programme aimed at improving service delivery in the civil service.
The new TEVET Levy collection initiative is expected to enhance the levy collection base and enable TEVETA fulfill its mandate with efficiency by concentrating on its core function of regulating and facilitating provision of technical, entrepreneurial and vocational education and training in Malawi.
On its part, MRA is better positioned to collect the TEVET Levy since it is already in revenue collection. MRA has the requisite infrastructural and technical capacity to execute the responsibility alongside its core mandate of collecting tax revenues.
It will not be difficult for MRA officers to collect the TEVET Levy because of their skills and experience in the administration of Pay As You Earn (PAYE). PAYE and the TEVET Levy are drawn from the same source and MRA and TEVETA are looking at how to harmonize them.
Employers will continue remitting 1% of the basic annual payroll paid to employees with MRA collecting the TEVET levy on behalf of TEVETA. Employers need to register with MRA for TEVET Levy if they are not yet registered; pay all outstanding and current TEVET Levy at MRA offices or at Standard Bank, the designated commercial bank; and make sure their arrears are cleared by June 2016.
The purpose of the TEVET Levy is to fund approved technical education and training programmes in Malawi, special programmes to support the technical education and training system and user-free subsidization through scholarships, grants and loans. The levy is also used to fund incentives to employers to directly invest in technical education and training, an endowment fund to support technical education and training, and government and management structures of the technical education and training system.