Tax Update
Non-Resident Tax

Non-Resident Tax

Non-Resident Tax (NRT) is a tax charged on income of revenue nature remitted to a person residing outside Malawi from a source within or deemed to be within Malawi and not attributable to a permanent establishment of that person in Malawi.

The rate of NRT is 15% on the gross amount of such income, 15% in relation to management fees and 10% in relation to income derived from a mining project by way of interest, royalty, payment for independent personal services or dividend. NRT is a final tax and there is no need for issuing notices of assessments as no claim for expenses is allowed.

A non-resident means any person who, under the Taxation Act, is not liable to tax in Malawi because of not having a domicile, a residence and a place of management for unnatural persons. A non-resident includes any person who is liable to tax in Malawi in respect only of income from sources in Malawi or capital situated in Malawi.

The Taxation Act stipulates that NRT shall be deducted under the following circumstances; accrual of the amount to the non-resident; payment of the amount to the non-resident whether directly to them or their accounts in or outside Malawi; remittance of the amounts to the non-resident; and crediting of the amount or the value thereof in favour of the non-resident.

NTR is also payable upon receiving, processing, or handling payment of the amount to such a person in any way, including providing a platform, whether as a bank or otherwise, to the person directly or indirectly.
The obligation to deduct and remit NRT rests with the person from whom the amount is due because non-residents are absent from Malawi at the time the tax arises.

NRT is not payable in respect of all income and other amounts exempt from tax under the provisions of the First Schedule to the Taxation Act or all pensions or annuity payments.

Any person who fails to deduct NRT shall be personally liable to pay to Malawi Revenue Authority (MRA) the amount of any NRT that he has failed to deduct plus additional penalties.

Feedback: tax@mra.mw; 0888 958 220, 0888 986 200

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