On 26 August 2021, the Malawi Revenue Authority released a notice confirming the effective date for changes brought to income tax rates by the Taxation (Amendment) Act 2021.
With effect as from the 13 August 2021, the rates used to charge income tax will be as follows:
1. Rates of Income Tax Other Than Remuneration (Business)
The first K100,000 per month is taxed at 0%
The excess of K100,000 is taxed at 30%
2. Rate of Income on Remuneration (Employment)
The first K100,000 per month is taxed at 0%
The next K900,000 per month is taxed at 25%
The next K2,000,000 per month is taxed at 30%
The next K3,000,000 per month is taxed at 35%
The next K6,000,000 per month is taxed at 40%
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