Taxation (Amendment) Act, 2022

Abstract

The Taxation (Amendment) Act, 2022 introduces several key changes to Malawi's tax laws. It removes references to LIBOR in deemed interest calculations, clarifies what constitutes a commercial building, and expands exemptions for certain receipts and accruals. The Act also imposes a final withholding tax on income from tobacco sales by clubs, commissions, betting winnings, and gambling. It sets the presumptive tax rate for commercial passenger vehicles and mandates the use of tax clearance certificates for various licensing, licensing renewals, and import/export activities. Additionally, the Act updates withholding tax rates across different types of payments and revises definitions within the Taxation Act to streamline tax administration and compliance.