Inevstment Incentives
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.
- Low wage rates and a stable social and political environment
- 40% investment allowance on qualifying expenditure for new buildings and machinery.
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.
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.
Incentives for horticulture producers:
- 100 percent duty-free importation of equipment and raw materials for those exclusively engaged in horticultural production for export.
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