Investment Incentives in Malawi

Investment Incentives in Malawi

The Government of Malawi encourages foreign direct investments by offering several investment incentives. There are general incentives and Export Processing Zone incentives.

General incentives

  • 100% investment allowance on qualifying expenditure for new building and machinery
  • Allowance up to 40% for used building and machinery
  • Allowance of manufacturing companies to deduct all operating expenses incurred up to 25 years prior to the start of operations
  • Free repatriation of dividends, profits and royalties
  • Zero duty on raw materials used in manufacturing
  • Exemption of Duty, Excise and VAT on Industrial Machinery and Equipment
  • Exemption of duty on direct importation of goods used in the tourism industry
  • There are no restrictions on remittance of foreign investment funds (including capital, profits, loan repayments and lease repayments) as long as the capital and loans that were obtained from foreign sources were registered with the Reserve Bank of Malawi (RBM)

Export Processing Zone (EPZ)

Incentives

  • Capital equipment and raw materials are duty-free
  • No excise tax is imposed on the purchases of raw materials and packaging materials made in Malawi
  • No withholding tax on dividends
    • Zero-rated corporate tax
    • No value added tax

 Tax breaks on large investments

Incentives

  • Allowance for manufacturing companies to deduct all operating expenses incurred up to 25 months prior to the start of operations
  • Loss carry forward of up to seven years, enabling companies to take advantage of allowances
  • Additional 15%allowance for investment in designated areas of the country
  • 50% allowance for qualifying training costs

About The Author

John Muhaise-Bikalemesa (JMB), is the founder of Muhaise.com blog and bigdrumassociates.com company. Learn more about him here and connect with him on his social medias below

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *