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
2019
2020
2021
2022
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year all
14 projects
amount 5 431.44 USD
disbursement 6 211.16 USD
Support to Public Financial and Economic Management
year 2015
1 project
amount 0.00 USD
disbursement 1 909.83 USD
Support to Public Financial and Economic Management
year 2016
1 project
amount 552.91 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2017
1 project
amount 0.00 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2017
1 project
amount 1 690.90 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2018
1 project
amount 404.82 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2018
1 project
amount 0.00 USD
disbursement 182.76 USD
Support to Public Financial and Economic Management
year 2019
1 project
amount 1 097.06 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2019
1 project
amount 0.00 USD
disbursement 17.02 USD
SUPPORT TO PUBLIC FINANCIAL AND ECONOMIC MANAGEMENT
year 2020
1 project
amount 1 396.01 USD
disbursement 1 503.80 USD
SUPPORT TO PUBLIC FINANCIAL AND ECONOMIC MANAGEMENT
year 2020
1 project
amount 0.00 USD
disbursement 0.53 USD
Support to Public Financial and Economic Management
year 2021
1 project
amount 0.00 USD
disbursement 14.63 USD
Support to Public Financial and Economic Management
year 2021
1 project
amount 289.74 USD
disbursement 1 718.17 USD
SUPPORT TO PUBLIC FINANCIAL AND ECONOMIC MANAGEMENT
year 2022
1 project
amount 0.00 USD
disbursement 316.02 USD
SUPPORT TO PUBLIC FINANCIAL AND ECONOMIC MANAGEMENT
year 2022
1 project
amount 0.00 USD
disbursement 548.40 USD
Japan
year all
3 projects
amount 18.61 USD
disbursement 18.59 USD
TC AGGREGATED ACTIVITIES
year 2015
1 project
amount 5.18 USD
disbursement 5.16 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 7.17 USD
disbursement 7.17 USD
TC AGGREGATED ACTIVITIES
year 2018
1 project
amount 6.26 USD
disbursement 6.26 USD
Korea
year all
3 projects
amount 24.59 USD
disbursement 24.59 USD
Invitational Revenue Package Seminar for High Level Officials from Afric
year 2015
1 project
amount 6.87 USD
disbursement 6.87 USD
AEO Trade Facilitation Workshop
year 2018
1 project
amount 4.51 USD
disbursement 4.51 USD
WCO RTC Seminar on IT and Single Window
year 2018
1 project
amount 13.21 USD
disbursement 13.21 USD
United States
year all
19 projects
amount 1 066.30 USD
disbursement 667.04 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 77.54 USD
disbursement 136.79 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 269.33 USD
disbursement 86.21 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 11.20 USD
disbursement 32.70 USD
Technical Assistance for Malawi - Revenue Policy and Administration
year 2016
1 project
amount 126.29 USD
disbursement 154.64 USD
Technical Assistance for Malawi - Revenue Policy and Administration
year 2017
1 project
amount -4.13 USD
disbursement 0.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 6.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 6.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 10.62 USD
disbursement 10.62 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 14.42 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 24.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 33.99 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 15.00 USD
disbursement 46.46 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 99.00 USD
disbursement 0.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 54.04 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 0.91 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 55.76 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 1.50 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 3.00 USD
MCC LAND PROJ
year 2022
1 project
amount 461.45 USD
disbursement 0.00 USD
United Kingdom
year all
5 projects
amount 81.86 USD
disbursement 81.86 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2017
1 project
amount 15.45 USD
disbursement 15.45 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2017
1 project
amount 17.31 USD
disbursement 17.31 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2018
1 project
amount 2.68 USD
disbursement 2.68 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2018
1 project
amount 9.18 USD
disbursement 9.18 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2019
1 project
amount 37.24 USD
disbursement 37.24 USD
Norway
year all
4 projects
amount 408.86 USD
disbursement 347.41 USD
Tax Justice Malawi
year 2018
1 project
amount 345.12 USD
disbursement 86.97 USD
Tax Justice Malawi
year 2019
1 project
amount 0.00 USD
disbursement 34.77 USD
TAX JUSTICE MALAWI
year 2020
1 project
amount 63.74 USD
disbursement 74.36 USD
Tax Justice Malawi
year 2021
1 project
amount 0.00 USD
disbursement 151.31 USD
European Commission
year all
13 projects
amount 0.00 USD
disbursement 2 173.93 USD
Chuma Cha Dzika (PFM Malawi)
year 2018
1 project
amount 0.00 USD
disbursement 0.00 USD
Revenue Mobilization Thematic Fund (RMTF)
year 2019
1 project
amount 0.00 USD
disbursement 0.00 USD
Revenue Mobilization Thematic Fund (RMTF)
year 2019
1 project
amount 0.00 USD
disbursement 400.00 USD
Revenue Mobilization Thematic Fund (RMTF)
year 2020
1 project
amount 0.00 USD
disbursement 0.00 USD
Revenue Mobilization Thematic Fund (RMTF)
year 2020
1 project
amount 0.00 USD
disbursement 0.00 USD
Technical Assistance to the Government of Malawi to support the implementation of PFM Reforms
year 2021
1 project
amount 0.00 USD
disbursement 594.80 USD
Voices and Actions for Accountability in Malawi (VAAM!)
year 2021
1 project
amount 0.00 USD
disbursement 19.24 USD
Enhanced Evidence-based research to inform policy decision making in PFM
year 2021
1 project
amount 0.00 USD
disbursement 32.24 USD
Voice of Accountability
year 2021
1 project
amount 0.00 USD
disbursement 424.90 USD
Technical Assistance to the Government of Malawi to support the implementation of PFM Reforms
year 2022
1 project
amount 0.00 USD
disbursement 184.36 USD
Technical Assistance to the Government of Malawi to support the implementation of PFM Reforms
year 2022
1 project
amount 0.00 USD
disbursement 312.75 USD
Procurement of desktop computers, monitors and an economic software
year 2022
1 project
amount 0.00 USD
disbursement 59.92 USD
Voice of Accountability
year 2022
1 project
amount 0.00 USD
disbursement 145.72 USD
Totals
year all
61 projects
amount 7 031.66 USD
disbursement 9 524.58 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2015
1 project
amount 0.00 USD
disbursement 1 909.83 USD
Support to Public Financial and Economic Management
year 2015
1 project
amount 0.00 USD
disbursement 1 909.83 USD
Japan
year 2015
1 project
amount 5.18 USD
disbursement 5.16 USD
TC AGGREGATED ACTIVITIES
year 2015
1 project
amount 5.18 USD
disbursement 5.16 USD
Korea
year 2015
1 project
amount 6.87 USD
disbursement 6.87 USD
Invitational Revenue Package Seminar for High Level Officials from Afric
year 2015
1 project
amount 6.87 USD
disbursement 6.87 USD
United States
year 2015
3 projects
amount 358.07 USD
disbursement 255.70 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 77.54 USD
disbursement 136.79 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 269.33 USD
disbursement 86.21 USD
Technical Assistance for Malawi . Revenue Policy and Administration
year 2015
1 project
amount 11.20 USD
disbursement 32.70 USD
Totals
year 2015
6 projects
amount 370.12 USD
disbursement 2 177.56 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2016
1 project
amount 552.91 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2016
1 project
amount 552.91 USD
disbursement 0.00 USD
United States
year 2016
1 project
amount 126.29 USD
disbursement 154.64 USD
Technical Assistance for Malawi - Revenue Policy and Administration
year 2016
1 project
amount 126.29 USD
disbursement 154.64 USD
Totals
year 2016
2 projects
amount 679.20 USD
disbursement 154.64 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2017
2 projects
amount 1 690.90 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2017
1 project
amount 0.00 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2017
1 project
amount 1 690.90 USD
disbursement 0.00 USD
United Kingdom
year 2017
2 projects
amount 32.76 USD
disbursement 32.76 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2017
1 project
amount 15.45 USD
disbursement 15.45 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2017
1 project
amount 17.31 USD
disbursement 17.31 USD
Japan
year 2017
1 project
amount 7.17 USD
disbursement 7.17 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 7.17 USD
disbursement 7.17 USD
United States
year 2017
1 project
amount -4.13 USD
disbursement 0.00 USD
Technical Assistance for Malawi - Revenue Policy and Administration
year 2017
1 project
amount -4.13 USD
disbursement 0.00 USD
Totals
year 2017
6 projects
amount 1 726.70 USD
disbursement 39.93 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2018
2 projects
amount 404.82 USD
disbursement 182.76 USD
Support to Public Financial and Economic Management
year 2018
1 project
amount 404.82 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2018
1 project
amount 0.00 USD
disbursement 182.76 USD
Norway
year 2018
1 project
amount 345.12 USD
disbursement 86.97 USD
Tax Justice Malawi
year 2018
1 project
amount 345.12 USD
disbursement 86.97 USD
United Kingdom
year 2018
2 projects
amount 11.86 USD
disbursement 11.86 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2018
1 project
amount 2.68 USD
disbursement 2.68 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2018
1 project
amount 9.18 USD
disbursement 9.18 USD
Japan
year 2018
1 project
amount 6.26 USD
disbursement 6.26 USD
TC AGGREGATED ACTIVITIES
year 2018
1 project
amount 6.26 USD
disbursement 6.26 USD
Korea
year 2018
2 projects
amount 17.72 USD
disbursement 17.72 USD
AEO Trade Facilitation Workshop
year 2018
1 project
amount 4.51 USD
disbursement 4.51 USD
WCO RTC Seminar on IT and Single Window
year 2018
1 project
amount 13.21 USD
disbursement 13.21 USD
United States
year 2018
13 projects
amount 124.62 USD
disbursement 256.70 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 6.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 6.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 10.62 USD
disbursement 10.62 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 14.42 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 24.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 33.99 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 15.00 USD
disbursement 46.46 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 99.00 USD
disbursement 0.00 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 54.04 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 0.91 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 55.76 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 1.50 USD
The Local Government Accountability and Performance (LGAP) activity
year 2018
1 project
amount 0.00 USD
disbursement 3.00 USD
European Commission
year 2018
1 project
amount 0.00 USD
disbursement 0.00 USD
Chuma Cha Dzika (PFM Malawi)
year 2018
1 project
amount 0.00 USD
disbursement 0.00 USD
Totals
year 2018
22 projects
amount 910.40 USD
disbursement 562.27 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2019
2 projects
amount 1 097.06 USD
disbursement 17.02 USD
Support to Public Financial and Economic Management
year 2019
1 project
amount 1 097.06 USD
disbursement 0.00 USD
Support to Public Financial and Economic Management
year 2019
1 project
amount 0.00 USD
disbursement 17.02 USD
Norway
year 2019
1 project
amount 0.00 USD
disbursement 34.77 USD
Tax Justice Malawi
year 2019
1 project
amount 0.00 USD
disbursement 34.77 USD
United Kingdom
year 2019
1 project
amount 37.24 USD
disbursement 37.24 USD
Peer to Peer HMRC Tax Capacity Building - Malawi
year 2019
1 project
amount 37.24 USD
disbursement 37.24 USD
European Commission
year 2019
2 projects
amount 0.00 USD
disbursement 400.00 USD
Revenue Mobilization Thematic Fund (RMTF)
year 2019
1 project
amount 0.00 USD
disbursement 0.00 USD
Revenue Mobilization Thematic Fund (RMTF)
year 2019
1 project
amount 0.00 USD
disbursement 400.00 USD
Totals
year 2019
6 projects
amount 1 134.30 USD
disbursement 489.03 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2020
2 projects
amount 1 396.01 USD
disbursement 1 504.33 USD
SUPPORT TO PUBLIC FINANCIAL AND ECONOMIC MANAGEMENT
year 2020
1 project
amount 1 396.01 USD
disbursement 1 503.80 USD
SUPPORT TO PUBLIC FINANCIAL AND ECONOMIC MANAGEMENT
year 2020
1 project
amount 0.00 USD
disbursement 0.53 USD
Norway
year 2020
1 project
amount 63.74 USD
disbursement 74.36 USD
TAX JUSTICE MALAWI
year 2020
1 project
amount 63.74 USD
disbursement 74.36 USD
European Commission
year 2020
2 projects
amount 0.00 USD
disbursement 0.00 USD
Revenue Mobilization Thematic Fund (RMTF)
year 2020
1 project
amount 0.00 USD
disbursement 0.00 USD
Revenue Mobilization Thematic Fund (RMTF)
year 2020
1 project
amount 0.00 USD
disbursement 0.00 USD
Totals
year 2020
5 projects
amount 1 459.75 USD
disbursement 1 578.69 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2021
2 projects
amount 289.74 USD
disbursement 1 732.80 USD
Support to Public Financial and Economic Management
year 2021
1 project
amount 0.00 USD
disbursement 14.63 USD
Support to Public Financial and Economic Management
year 2021
1 project
amount 289.74 USD
disbursement 1 718.17 USD
Norway
year 2021
1 project
amount 0.00 USD
disbursement 151.31 USD
Tax Justice Malawi
year 2021
1 project
amount 0.00 USD
disbursement 151.31 USD
European Commission
year 2021
4 projects
amount 0.00 USD
disbursement 1 071.18 USD
Technical Assistance to the Government of Malawi to support the implementation of PFM Reforms
year 2021
1 project
amount 0.00 USD
disbursement 594.80 USD
Voices and Actions for Accountability in Malawi (VAAM!)
year 2021
1 project
amount 0.00 USD
disbursement 19.24 USD
Enhanced Evidence-based research to inform policy decision making in PFM
year 2021
1 project
amount 0.00 USD
disbursement 32.24 USD
Voice of Accountability
year 2021
1 project
amount 0.00 USD
disbursement 424.90 USD
Totals
year 2021
7 projects
amount 289.74 USD
disbursement 2 955.29 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Germany
year 2022
2 projects
amount 0.00 USD
disbursement 864.42 USD
SUPPORT TO PUBLIC FINANCIAL AND ECONOMIC MANAGEMENT
year 2022
1 project
amount 0.00 USD
disbursement 316.02 USD
SUPPORT TO PUBLIC FINANCIAL AND ECONOMIC MANAGEMENT
year 2022
1 project
amount 0.00 USD
disbursement 548.40 USD
United States
year 2022
1 project
amount 461.45 USD
disbursement 0.00 USD
MCC LAND PROJ
year 2022
1 project
amount 461.45 USD
disbursement 0.00 USD
European Commission
year 2022
4 projects
amount 0.00 USD
disbursement 702.75 USD
Technical Assistance to the Government of Malawi to support the implementation of PFM Reforms
year 2022
1 project
amount 0.00 USD
disbursement 184.36 USD
Technical Assistance to the Government of Malawi to support the implementation of PFM Reforms
year 2022
1 project
amount 0.00 USD
disbursement 312.75 USD
Procurement of desktop computers, monitors and an economic software
year 2022
1 project
amount 0.00 USD
disbursement 59.92 USD
Voice of Accountability
year 2022
1 project
amount 0.00 USD
disbursement 145.72 USD
Totals
year 2022
7 projects
amount 461.45 USD
disbursement 1 567.17 USD