The Provisional Budget Statement for Malawi, which was approved on 30 June 2020, has been released. The tax-free bracket will increase from K45 000 to K100 000.

The new monthly tax table is as follows:

Please click here to view the Provisional Budget Statement for more detail regarding this proposed change.

The effective date is not mentioned in the document, but it is expected to be the start of the new tax year, which is 01 July 2020.

The Taxation amendment Gazette is not available yet. This means that the proposed change is subject to approval. Communication will be updated as soon as more information becomes available

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Update 12/11/2020

The Malawi Revenue Authority has announced that the Taxation (Amendment) Act has been gazetted. Please click here to view the Public Notice.

The Eleventh Schedule to the Taxation Act has the following amended tax table for PAYE:

Monthly

The effective date is 3 November 2020.

SBCPP will be updated on Monday evening 16/11/2020

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Update 28/09/2020

According to the recent Malawi budget speech, the Government will increase the Pay As You Earn zero bracket from MK45 000 per month to MK100 000 per month.

The 15% middle bracket under the Pay As You Earn regime has been removed, leaving the tax table with 3 income brackets.

The revised budget was presented in parliament and is currently being debated. It is expected that these amendments will become effective on 1 October 2020 after the amendment of the Taxation Act.

Please click here to view the Budget Speech presented to Parliament on 11 September 2020.