The Malawi government has abolished the 5% repatriation tax for non-resident companies, increased withholding tax on gambling winnings to 10%, and exempted bread from the 16.5% VAT.
Malawi has implemented new tax laws through the Taxation (Amendment) Act 14 of 2025 and the Value Added Tax (Amendment) Act 15 of 2025, effective 1 April 2025. The two Acts were gazetted on 23 May 2025.
The key provisions of the Acts are as follows:
Removal of repatriation tax
The additional 5% tax on repatriated profits for non-resident companies with a permanent establishment in Malawi has been abolished.
Increased withholding tax
The withholding tax on winnings from betting, gambling, and lotteries has been raised from 5% to 10%.
VAT exemption on bread
Bread is now exempt from VAT, which was previously taxed at a rate of 16.5%.
