RENTAL WITHHOLDING TAX UP BY 20% – Malawi News Online
Presenting the full 2019/20 National Budget, the Minister of Finance, Joseph Mwanamvekha, outlined how K1.7 trillion was going to be spent in the next financial year. During the presentation, reviews towards income tax were outlined.
According to Mwanamvekha, government upped the PAYE tax-free bracket from K35,000-K45,000. He says this takes into account the cost of living. “Madam Speaker, Government has also increased the Withholding Tax rate on rental income from 15 to 20% under the Fourteenth Schedule of the Taxation Act to align with the applicable rates of Withholding Taxes for Commissions, Royalties and Services” said Mwanamvekha. He also urged all property owners to comply with the resolve.
On the other hand, Minimum wage has been increased from K962/day (about K25,000/month) to K1,346/per (about K35,000/month). Prior to the development, government increased the statutory minimum wage for all workers from K787.70 to K962.00 on the first of July 2017. Parliament passed the 2017/18 national budget worth MK1.3 trillion, with a proposed minimum wage increase from K19,000 to K25,000 per month.