1. WHAT IS TAX?

Tax is a legally imposed contribution to state revenues, which may be imposed on income/gains, property, goods and services.

The incidence of tax may fall upon companies, individuals, trusts or any other person. Tax is the foundation of a civilized society.

2. INCOME TAX

Income tax, as the name implies, is a tax on Income. Income includes the total amount in cash or kind received by or accrued to a person from sources within Malawi, or deemed to be within Malawi.

In addition to Income Tax, there is also Fringe Benefit tax.

In Malawi, there are several methods deployed for the collection of Income tax. These include Pay As You Earn (PAYE), Withholding Tax and Provisional Tax.

3. CUSTOMS DUTY

These are taxes levied on goods imported into or exported from the country. These include Import Duty, Excise Duty and Surtax

1. Import duty: Duty charged, levied, collected and paid in respect of goods imported into Malawi.
2. Excise Duty: Duty charged, levied, collected and paid in respect of some goods imported into, or manufactured, or produced in Malawi
3. Surtax: Tax charged, levied, collected and paid in respect of goods imported into, or manufactured in Malawi, and specified services supplied in Malawi.

These taxes are levied at prescribed rates.

4. THE USE OF YOUR TAX

The revenue collected by the MRA is used by Government to improve on the welfare of the people by providing improved health services, improved educational services, improved national security and improved infrastructure (e.g. water, electricity and roads), among other services. These benefits will in turn, create a conducive and enabling environment for the private sector to create more wealth.