axation (Amendment) Act, 2021

Abstract

The amendments to the Malawi Taxation Act 2021 introduce several key changes: they define "winnings" and establish a withholding tax on winnings exceeding K100,000; update the presumptive tax on turnover, with specified rates based on turnover thresholds and options for taxpayers to opt out; replace the section on presumptive tax with provisions applicable to income derived from Malawi for businesses with income not exceeding K12.5 million; and implement a new requirement for advance income tax of 3% on the customs value of imported goods, with exemptions for personal use, government entities, or tax-exempt individuals. Additionally, the Eleventh Schedule is amended to modify income tax rates and thresholds, and the Fourteenth Schedule is updated concerning withholding tax on winnings.