Taxation (Amendment) (No. 2) Act, 2025 (Malawi)

Abstract

The Taxation (Amendment) (No. 2) Act, 2025 introduces significant reforms to Malawi’s tax regime by amending the Taxation Act (Cap. 41:01). The Act establishes a money transfer levy on electronic and bank‑based monetary transfers above a specified threshold, to be collected by banks and e‑money service providers. It further introduces a minimum alternative tax for large companies based on total turnover, ensuring a baseline tax contribution irrespective of taxable income. Additionally, the Act revises corporate income tax provisions, amends multiple tax schedules, adjusts applicable tax rates, and strengthens the taxation of betting and gambling winnings by making withholding tax final. Overall, the Act aims to broaden the tax base, enhance revenue mobilisation, and improve compliance within Malawi’s evolving digital and corporate economy.