DoubleTaxationTaxes on salary: Malawi preliminary data
How much income tax and social contributions are paid on a salary in Malawi, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | MWK 121,946,114 ≈ €60,000 |
|---|---|
| Income tax | MWK 41,224,446 ≈ €20,283 |
| Take-home pay | MWK 80,721,668 ≈ €39,717 |
| Employer contributions and payroll taxes | MWK 1,219,461 ≈ €600 |
| Employer's labour cost | MWK 123,165,575 ≈ €60,600 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 MWK 60,973,057 | €60,000 MWK 121,946,114 | €120,000 MWK 243,892,228 |
|---|---|---|---|
| Sole proprietor | MWK 17,652,513 32.2 % | MWK 36,859,026 33.6 % | MWK 80,247,202 36.6 % |
| Company | MWK 16,462,725 30.0 % | MWK 32,925,451 30.0 % | MWK 65,850,901 30.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Malawi yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 2032.435231 MWK (Reserve Bank of Malawi — Major Foreign Exchange Rates (USD middle), 02/01/2026) ↗
Sources
- MRA — online PAYE calculator (results for sample monthly salaries, 7 Nov 2026)
- MRA — Presumptive Tax (article, 2023)
- MRA — TEVET Levy (article)
- Taxation (Amendment) Act No. 14 of 2020 (Malawi Gazette publication via Laws.Africa) — Eleventh Schedule (rates) and Fourteenth Schedule (withholding) (law text from a third-party publisher; no official copy found)
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.