Malawi – Fringe Benefit Tax Regulations Amendment 2024

Malawi – Fringe Benefit Tax Regulations Amendment 2024

The Taxation (Fringe Benefit Tax) (Information and Payment) (Amendment) Regulations 2024 have been published.

 

Key update impacting payroll:

  • Employer-provided airtime and data will now be subject to Fringe Benefit Tax (FBT) at 50% of its value.

Previously, airtime and data provided by employers were considered a fully taxable utility fringe benefit subject to Fringe Benefit Tax (FBT). 

FBT is a tax payable by employers at a flat rate of 30% on the total taxable value of fringe benefits provided to their employees. A fringe benefit includes any asset, service, or non-monetary benefit granted by an employer or on their behalf, which offers a personal advantage to the employee.

 

With this amendment, the taxable amount for airtime and data is now calculated as (Value × 50%) × 30%.

 

This change is effective retrospectively from 1st April 2024, as per the published regulations

 


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