Malawi: Proposed tax changes 2022/2023
The Minister of Finance and Economic Affairs Sosten Gwengwe has presented the 2022/2023 national budget for Malawi.
Please note that the Income Tax changes will be effective on the 1st of April 2022 once the relevant Bills have been passed by Parliament.
Updated tax tables:
Interest on Loans:
Where interest is charged at zero or no interest is charged by a lender to another person; for tax purposes, interest is deemed to have accrued and subjected to income tax. To determine the interest for foreign loans, the deemed interest rate is the prevailing London Interbank Offered Rate (LIBOR) plus 5 percent. However, with effect from January 2022, the LIBOR was phased out. The Government will therefore amend Section 27(9)(b) to change the deemed interest for the foreign loans to be 6 percent on United States Dollar equivalent of the loan.
Filing deadline for presumptive taxpayers:
The government intends to introduce a requirement for taxpayers under presumptive tax to file their tax returns by 30th April for the end of the tax year. Honorable Members should understand that this is a simplified return specifically designed for small businesses and will be easily completed independently or with the assistance of MRA customer care staff. This will assist MRA to identify the presumptive tax bracket or category the taxpayers belong to.
An update will be sent out once these changes have been passed by Parliament.
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