Malawi Enacts VAT on Digital Services Supplied by Foreign Companies and Increased VAT Registration Threshold, and Several Other Measures

Malawi has enacted legislation for the 2026-2027 Budget, which was published in the Official Gazette on 14 April 2026 and came into force on 15 April 2026. Some of the main tax measures include:

• The introduction of a final 15% withholding tax on gross rental income for individuals renting out residential houses, paid on a quarterly basis;
• Clarification that any levy paid on mobile money or bank transfers is not an allowable deduction for income tax purposes;
• A shift in the payment and remit…