Parliament has passed the Taxation (Amendment) (No. 2) Bill of 2025 after facing divisions in the first attempt.
The Bill was passed after a voting process ended with 94 MPs voting in favor, 49 rejected, 77 absent and 2 abstained.
Malawi Revenue Authority has now been given new powers to enforce the measures and require e-money providers and banks to remit collected levies within 14 days.
Among others the bill seeks to introduce a 0.05% levy on mobile money and bank transfers above K100,000, establish a minimum alternative tax for companies with turnover above K5 billion, and scrap the long-standing capital gains tax exemption on shares held for more than a year.
It also proposes lowering the profit threshold for the 40% corporate income tax rate from K10 billion to K5 billion, adjusting PAYE bands, and raising withholding tax on betting and gambling winnings from 10% to 15%.
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