Malawi

{"ftc_utility":"high","fbar_trigger_notes":"US persons with Malawian bank accounts exceeding $10,000 aggregate at any point must file FBAR (FinCEN 114). Employers often require local bank accounts for salary payment in Malawian Kwacha, so the threshold is frequently triggered for employed expats.","ftc_utility_reason":"Malawi taxes residents on worldwide income at rates up to 35%. US expats paying Malawian income tax on the same income can claim the Foreign Tax Credit to offset US tax liability, often eliminating US tax owed on Malawian-source income. FTC is generally more advantageous than FEIE for higher earners given the relatively high top marginal rate.","presence_day_count_notes":"Most US expats in Malawi qualify under the 330-day physical presence test. Visa conditions vary; work permits are required for employment. Days spent outside Malawi on business travel do not automatically disqualify bona fide residence. No unusual rules that specifically interfere with the 330-day count.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":7200,"local_tax_rate_on_earned_income":0.35,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Malawi tax residents is included in assessable income and taxed at progressive rates. Malawian domestic pension income may benefit from partial exemptions under the Taxation Act, but foreign pensions generally receive no special treatment.","tax_rate":0.35,"locally_taxed":true},"social_security":{"notes":"No US-Malawi totalization or income tax treaty covers US Social Security benefits. Benefits received by a Malawi resident are treated as foreign pension income and subject to Malawian income tax at progressive rates up to 35%.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No US-Malawi tax treaty exists to provide exemption. Roth distributions would be assessed as foreign income in Malawi, though the non-taxable character under US law is not recognized. Roth distributions may be taxed at progressive rates up to 35% in Malawi.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Malawi has no tax treaty with the United States. Distributions from US retirement accounts (401k, IRA) received by a Malawi tax resident are treated as foreign-source income and taxable under ordinary progressive rates up to 35%. Malawi taxes residents on worldwide income.","tax_rate":0.35,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.3,"notes":"Malawi does not have a standalone capital gains tax. Gains on disposal of assets are generally treated as ordinary income and taxed at progressive individual rates, with the top marginal rate at 35%. Gains on disposal of investment property or shares by companies are taxed at the corporate rate of 30%.","details":{"tax_type":"Capital Gains Tax","country_name":"Malawi","country_iso_code":"MWI","source_references":["Malawi Revenue Authority","Taxation Act Cap 41:01 Malawi","KPMG Africa Tax Guide"],"last_verified_date":"2026-06-03","general_description":"No separate capital gains tax regime exists in Malawi. Gains are folded into taxable income under the Taxation Act and subject to ordinary income tax rates. Gains on shares listed on the Malawi Stock Exchange may be exempt in certain circumstances.","corporate_capital_gains":{"rate":0.3,"tax_treatment":"Taxed as ordinary corporate income at the standard corporate rate of 30%. Gains on disposal of assets are included in taxable profits."},"individual_capital_gains":{"rate":0.35,"tax_treatment":"No separate CGT; gains treated as ordinary income taxed at progressive rates up to 35%. Gains on shares listed on the Malawi Stock Exchange may qualify for exemption."}}}

{"notes":"Dividends paid to residents and non-residents are subject to withholding tax (WHT) under the Taxation Act. The standard WHT rate on dividends is 10% for residents and 15% for non-residents. These withholding taxes are generally final taxes for residents receiving dividends from Malawian companies.","rates":[{"rate":0.1,"type":"withholding","notes":"Resident individuals and companies - final withholding tax on dividends paid by Malawian resident companies."},{"rate":0.15,"type":"withholding","notes":"Non-resident recipients - final withholding tax on dividends sourced in Malawi. Rate may be reduced under applicable tax treaties."}]}