Presumptive tax calculator Malawi

Enter your business turnover for the year to see the presumptive tax you owe and the quarterly instalment.

Presumptive tax replaced turnover tax for micro, small and medium businesses. The MRA started it on 1 April 2023.

How it's calculated

Turnover up to MK 4,000,000: no tax.
Above MK 4,000,000 and up to MK 7,000,000: MK 110,000 a year.
Above MK 7,000,000 and up to MK 10,000,000: MK 170,000 a year.
Above MK 10,000,000 and up to MK 12,500,000: MK 225,000 a year.
You pay it in four quarterly instalments, due by the 14th of the month after each quarter.

An example

A shop with a turnover of MK 8,000,000 a year pays MK 170,000, or MK 42,500 each quarter.

Frequently asked questions

Which income is left out?

Rental income, management, professional or training fees, the income of incorporated companies and any income already taxed by a final withholding tax.

Can I choose the normal income tax rules instead?

Yes. You can write to the Commissioner General to say you do not want to be under presumptive tax, and the other rules of the Taxation Act will apply to you.

How do I register?

Registration is free. You can do it through Msonkho Online or at the nearest MRA Domestic Taxes office with your national ID and business registration certificate.

Key terms

Turnover: All the money your business takes from sales in the year, before costs.
TPIN: Taxpayer Identification Number, the number the MRA gives you when you register.