Malawi offers a wide range of tax incentives with the aim of encouraging development, enhancing output, earning and saving foreign exchange, and expanding employment opportunities. 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 incentives fall under two main categories of Taxes and these are, Customs & Excise Taxes and Domestic Taxes. Customs & Excise Taxes are taxes imposed at a rate percent of the Cost, Insurance and Freight value of imported goods (i.e. CIF).
Customs & Excise Taxes comprise of the following:-
1. Import Duty
2. Import Excise
3. Import Value Added Taxes (VAT) and
4. Export duty
The Malawi Customs & Excise Tariff book provides for various sector specific tax incentives through Customs Procedure Codes which give declaration of goods and conditions eligible for tax exemption. Domestic Taxes are taxes collected from income generated within the geographical confines on the country.
These include the following:-
1. Income Tax
2. Value Added Tax
3. Fringe Benefit Tax
4. Non-Resident Tax
5. Withholding Tax on Dividends
6. Domestic Excise
Domestic Tax Incentives in Malawi are mainly in form of tax exemptions against the levied taxes.
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