Malawi | New Tax Measures for Mid-Year Budget Review

Malawi | New Tax Measures for Mid-Year Budget Review

The Honourable Minister of Finance, Economic Planning and Decentralization presented the 2025/26 Mid-Year Budget Review to Parliament on Friday, 21st November, 2025. New tax measures for Domestic Taxes and Customs & Excise were announced. The new measures affecting Payroll are effective from 30th December, 2025 as follows:

Pay As You Earn PAYE
    • Increased the zero-rate threshold from K150, 000 to K170,000 per month
    • Removed the 25 percent tax bracket
    • Applied 30 percent rate on monthly incomes from K170,000 to K1.57 million
    • Applied 35 percent rate on monthly incomes from K1.57 million to K10 million
    • Introduced 40 percent rate on monthly incomes in excess of K10 million per month

A copy of the notice announcing these changes is attached.

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