General Incentives | Export Incentives | Incentives for manufacturing in bond include | Incentives for horticulture producers

I. General Incentives:
• Additional 15 percent allowance for investments in designated areas of the country.
• Allowance up to 20 percent for used buildings and machinery
• 50 percent allowance for qualifying training costs.
• Allowance for manufacturing companies to deduct all operating expenses incurred up to 24 months prior to the start of operations.
• Zero duty on raw materials used in manufacturing
• Indefinite loss carry forward enabling companies to take advantage of allowance.
• Duty free importation of heavy commercial vehicles with payloads of at least 10 tones
• Agreement for the reduction of withholding taxes on remittance and payments.
• Low wage rates and a stable social and political environment

II. Export Incentives:

Incentives for establishing operations in an Export Processing Zone (EPZ) Include:

• No withholding tax on dividends
• No duty or capital requirement on capital equipment and raw materials.
• No excise taxes on purchases of raw materials and packaging materials made in Malawi.
• No surtaxes (VAT)
• Zero corporate tax rates.

III. Incentives for manufacturing in bond include:

• Export tax allowance of 12 percent of export revenues for non-traditional exports.
• Transport fax allowance equal to 25 percent of international transport costs, excluding traditional exports.
• No duties on imports of capital equipment used in the manufacture of exports.
• No surtaxes
• No excise taxes or duties on purchases of raw material and packaging materials.
• Timely refund of all duties (duty drawback) on imports of raw materials and packaging materials used in the production of exports.

IV. Incentives for horticulture producers

• 100 percent duty-free importation of equipment and raw materials for those exclusively engaged in horticultural production for export.