The Honorable Minister of Finance, Felix Mlusu delivered the 2021/2022 Budget Speech on the 28th of May 2021 to the National Assembly.
The Government has introduced two new Pay As You Earn (PAYE) brackets of 25 percent for incomes between K100,000 to K1.0 million per month and brackets of 40 percent for incomes of more than K6.0 million per month.
The changes were promulgated in the Finance Act No.4 of 2021 issued on the 13th of August 2021.
Click here for the Budget Speech.
Click here for the Income Tax Act Amendment.
Click here for the New Income Tax Rates.
Malawi Tax Table Changes
The tax tables have been updated effective 1 August 2021.
| Lower Income Limit | Upper Income Limit | Income Threshold | Marginal Rate | Tax on Threshold |
| 0.00 | 1 200 000.00 | 0.00 | 0% | 0.00 |
| 1 200 000.00 | 12 000 000.00 | 1 200 000.00 | 25% | 0.00 |
| 12 000 000.00 | 36 000 000.00 | 12 000 000.00 | 30% | 2 700 000.00 |
| 36 000 000.00 | 72 000 000.00 | 36 000 000.00 | 35% | 9 900 000.00 |
| 72 000 000.00 | 9 999 999 999.99 | 72 000 000.00 | 40% | 22 500 000.00 |
Impact of Malawi Tax Year Changes 2021 on payroll:
- The Malawi Tax Year Changes 2021 have been implemented on the system effective 1 August 2021.
- Customer payrolls have been switched to the Non-Cumulative (MTD) Tax method as the changes are applicable Mid Tax Year.
- No other statutory changes have been announced.
Should you have any questions regarding this change, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected].
The PaySpace Team
