Tax Incentives for Investment

Export Processing Zones Incentives 

    i.        100% exemption of corporate income tax;

   ii.        No withholding tax on dividends;

 iii.        No duty on capital equipment, machinery, and raw materials;

 iv.        No excise taxes on purchases of raw materials and packaging materials in Malawi;

   v.        0% value-added tax (VAT)

General Incentives 

i.     No tax on qualifying investment on new buildings and machinery;

ii.    No tax for up to 40% investment in used buildings and machinery;

iii.  No tax for 50% of qualifying training costs;

iv.  No tax on operating costs incurred by manufacturing companies 25 months before commencing production;

v.    Loss carry forward of up to seven years, enabling companies to take advantage of allowances;

vi.  No tax on 15% of the investment made in designated areas of the country such as Kanengo, Chirimba, and Luwinga industrial sites;

    v. Free repatriation of dividends, profits, and royalties