Malawi

Type of profile
Country
Overview

Recent reform steps

The development of a tax administration bill improved efficiency in tax administration and the resolution of tax disputes in Malawi. The split of customs and excise act into separate tax legislations for customs and excise tax management was undertaken recently. Furthermore, the Government of Malawi is planning to develop a Medium-Term Revenue Mobilisation Strategy in 2019/20.

Progress achieved

Malawi increased the coverage of electronic fiscal devices, removed tax incentives for passenger transport sector for big buses and minibuses, and introduced an additional income tax bracket of 35% for high-income earners in Malawi. Enhanced development of an Integrated Tax Administration System (ITAS), the introduction of withholding agents for value added tax (VAT) as well as the reduction of zero-rated and exempted products under VAT were achieved since 2017.

The BEPS Evaluation Report is expected to identify areas for capacity building in the area of addressing international tax evasion and improved understanding of the BEPS Initiative.

Outlook: DRM priorities in 2019

Priority activities
  • Increase the number of audits for different sectors
  • Training of officers in transfer pricing schemes by large businesses
  • Continuous investment and development of the ITAS
  • Conducting cost and benefit analyses of tax incentives. i.e. tax expenditure analysis
  • Build capacity and understanding of the BEPS Initiative
Expected outcomes
  • Increased tax compliance reflected in the number of on-time filing of tax returns and on time payment of taxes
  • Increased capacity in combating transfer pricing
  • Reduced incidences of transfer pricing cases
  • Improved customer service delivery
  • Widespread use of the ITAS Platform for interfacing with the Malawi Revenue Authority by taxpayers
  • Improved effectiveness of tax incentives
  • Improved understanding of BEPS, its requirements and whether Malawi could join the BEPS Inclusive Framework

Ensuring policy coherence for development

The Government of Malawi established a one-stop centre, where key institutions work under one roof with the main objective of facilitating investments in the country and improving the delivery of public services. Additionally, at the border entry points, there are Joint Border Committees, which are multi-institutional organisational structures, aimed at facilitating seamless trade across national borders, resolving any challenges the traders may face.

DRM Project Data as Recipient

all
2015
2016
2017
2018
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year all
6 projects
amount 2 648 632.10 USD
disbursement 5 696 834.27 USD
Support to Public Financial and Economic Management
year 2015
1 project
amount 0.00 USD
disbursement 1 909 830.00 USD
Support to Public Financial and Economic Management
year 2016
1 project
amount 552 913.86 USD
disbursement 1 212 925.30 USD
Support to Public Financial and Economic Management
year 2017
1 project
amount 0.00 USD
disbursement 1 253 046.65 USD
Support to Public Financial and Economic Management
year 2017
1 project
amount 1 690 902.94 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2018
1 project
amount 0.00 USD
disbursement 182 758.67 USD
Support to Public Financial and Economic Management
year 2018
1 project
amount 404 815.30 USD
disbursement 1 138 273.65 USD
South Korea
year all
3 projects
amount 24 589.00 USD
disbursement 24 589.00 USD
Invitational Revenue Package Seminar for High Level Officials from Afric
year 2015
1 project
amount 6 870.00 USD
disbursement 6 870.00 USD
AEO Trade Facilitation Workshop
year 2018
1 project
amount 4 511.00 USD
disbursement 4 511.00 USD
WCO RTC Seminar on IT and Single Window
year 2018
1 project
amount 13 208.00 USD
disbursement 13 208.00 USD
United States of America
year all
18 projects
amount 604 851.00 USD
disbursement 667 039.00 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 11 200.00 USD
disbursement 32 700.00 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 77 540.00 USD
disbursement 136 790.00 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 269 330.00 USD
disbursement 86 210.00 USD
Technical Assistance for Malawi - Revenue Policy and Administration
year 2016
1 project
amount 126 291.00 USD
disbursement 154 639.00 USD
Technical Assistance for Malawi - Revenue Policy and Administration
year 2017
1 project
amount -4 130.00 USD
disbursement 0.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 33 990.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 15 000.00 USD
disbursement 46 460.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 99 000.00 USD
disbursement 0.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 54 040.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 910.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 55 760.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 1 500.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 3 000.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 6 000.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 6 000.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 10 620.00 USD
disbursement 10 620.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 14 420.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 24 000.00 USD
Japan
year all
3 projects
amount 18 603.77 USD
disbursement 18 583.77 USD
TC AGGREGATED ACTIVITIES
year 2015
1 project
amount 5 180.00 USD
disbursement 5 160.00 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 7 166.85 USD
disbursement 7 166.85 USD
TC AGGREGATED ACTIVITIES
year 2018
1 project
amount 6 256.92 USD
disbursement 6 256.92 USD
United Kingdom
year all
4 projects
amount 44 622.36 USD
disbursement 44 622.36 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2017
1 project
amount 15 445.53 USD
disbursement 15 445.53 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2017
1 project
amount 17 312.90 USD
disbursement 17 312.90 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2018
1 project
amount 2 684.26 USD
disbursement 2 684.26 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2018
1 project
amount 9 179.67 USD
disbursement 9 179.67 USD
European Commission
year all
1 project
amount 12 982 414.73 USD
disbursement 0.00 USD
Chuma Cha Dzika (PFM Malawi)
year 2018
1 project
amount 12 982 414.73 USD
disbursement 0.00 USD
Norway
year all
1 project
amount 345 122.19 USD
disbursement 86 972.02 USD
Tax Justice Malawi
year 2018
1 project
amount 345 122.19 USD
disbursement 86 972.02 USD
Totals
year all
36 projects
amount 16 668 835.15 USD
disbursement 6 538 640.42 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2015
1 project
amount 0.00 USD
disbursement 1 909 830.00 USD
Support to Public Financial and Economic Management
year 2015
1 project
amount 0.00 USD
disbursement 1 909 830.00 USD
South Korea
year 2015
1 project
amount 6 870.00 USD
disbursement 6 870.00 USD
Invitational Revenue Package Seminar for High Level Officials from Afric
year 2015
1 project
amount 6 870.00 USD
disbursement 6 870.00 USD
United States of America
year 2015
3 projects
amount 358 070.00 USD
disbursement 255 700.00 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 11 200.00 USD
disbursement 32 700.00 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 77 540.00 USD
disbursement 136 790.00 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 269 330.00 USD
disbursement 86 210.00 USD
Japan
year 2015
1 project
amount 5 180.00 USD
disbursement 5 160.00 USD
TC AGGREGATED ACTIVITIES
year 2015
1 project
amount 5 180.00 USD
disbursement 5 160.00 USD
Totals
year 2015
6 projects
amount 370 120.00 USD
disbursement 2 177 560.00 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2016
1 project
amount 552 913.86 USD
disbursement 1 212 925.30 USD
Support to Public Financial and Economic Management
year 2016
1 project
amount 552 913.86 USD
disbursement 1 212 925.30 USD
United States of America
year 2016
1 project
amount 126 291.00 USD
disbursement 154 639.00 USD
Technical Assistance for Malawi - Revenue Policy and Administration
year 2016
1 project
amount 126 291.00 USD
disbursement 154 639.00 USD
Totals
year 2016
2 projects
amount 679 204.86 USD
disbursement 1 367 564.30 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2017
2 projects
amount 1 690 902.94 USD
disbursement 1 253 046.65 USD
Support to Public Financial and Economic Management
year 2017
1 project
amount 0.00 USD
disbursement 1 253 046.65 USD
Support to Public Financial and Economic Management
year 2017
1 project
amount 1 690 902.94 USD
disbursement 0.00 USD
United Kingdom
year 2017
2 projects
amount 32 758.43 USD
disbursement 32 758.43 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2017
1 project
amount 15 445.53 USD
disbursement 15 445.53 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2017
1 project
amount 17 312.90 USD
disbursement 17 312.90 USD
United States of America
year 2017
1 project
amount -4 130.00 USD
disbursement 0.00 USD
Technical Assistance for Malawi - Revenue Policy and Administration
year 2017
1 project
amount -4 130.00 USD
disbursement 0.00 USD
Japan
year 2017
1 project
amount 7 166.85 USD
disbursement 7 166.85 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 7 166.85 USD
disbursement 7 166.85 USD
Totals
year 2017
6 projects
amount 1 726 698.22 USD
disbursement 1 292 971.93 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
European Commission
year 2018
1 project
amount 12 982 414.73 USD
disbursement 0.00 USD
Chuma Cha Dzika (PFM Malawi)
year 2018
1 project
amount 12 982 414.73 USD
disbursement 0.00 USD
Germany
year 2018
2 projects
amount 404 815.30 USD
disbursement 1 321 032.32 USD
Support to Public Financial and Economic Management
year 2018
1 project
amount 0.00 USD
disbursement 182 758.67 USD
Support to Public Financial and Economic Management
year 2018
1 project
amount 404 815.30 USD
disbursement 1 138 273.65 USD
South Korea
year 2018
2 projects
amount 17 719.00 USD
disbursement 17 719.00 USD
AEO Trade Facilitation Workshop
year 2018
1 project
amount 4 511.00 USD
disbursement 4 511.00 USD
WCO RTC Seminar on IT and Single Window
year 2018
1 project
amount 13 208.00 USD
disbursement 13 208.00 USD
Norway
year 2018
1 project
amount 345 122.19 USD
disbursement 86 972.02 USD
Tax Justice Malawi
year 2018
1 project
amount 345 122.19 USD
disbursement 86 972.02 USD
United Kingdom
year 2018
2 projects
amount 11 863.93 USD
disbursement 11 863.93 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2018
1 project
amount 2 684.26 USD
disbursement 2 684.26 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2018
1 project
amount 9 179.67 USD
disbursement 9 179.67 USD
United States of America
year 2018
13 projects
amount 124 620.00 USD
disbursement 256 700.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 33 990.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 15 000.00 USD
disbursement 46 460.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 99 000.00 USD
disbursement 0.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 54 040.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 910.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 55 760.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 1 500.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 3 000.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 6 000.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 6 000.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 10 620.00 USD
disbursement 10 620.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 14 420.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 24 000.00 USD
Japan
year 2018
1 project
amount 6 256.92 USD
disbursement 6 256.92 USD
TC AGGREGATED ACTIVITIES
year 2018
1 project
amount 6 256.92 USD
disbursement 6 256.92 USD
Totals
year 2018
22 projects
amount 13 892 812.07 USD
disbursement 1 700 544.19 USD