Frequently Asked Questions

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What it's the process of registering with MRA?

Registering is free. Unlike in the previous years where you had to visit MRA offices, tax registration is done online nowadays. You can apply for Taxpayers Identification Number (TIN) through the link https://msonkho-online.mra.mw/#/security/login/applicant . You will be required to click register now and complete the form as required.  Once you are done that, you will access Msonkho online platform and you will be asked to complete the form by providing your personal details, contacts, address, IDs, Occupation and attachments (National IDs for Malawians and passport for Non-Malawians) You will then click submit and wait for the approval.  The taxation Act requires all businesses to get registered. You can also get assisted at our Blantyre and Lilongwe offices.

What happens if I fail to meet a deadline for my tax payments?

Each dateline you miss will come with a cost in form of penalty and interest. There are two things you need to understand here; 1. Tax payments dateline and 2. Tax return submission dateline. Below is an example of penalties you pay if you miss dateline.

For sole traders

Late submission (submitting after Dec 2021) k75,000 then MRA will be charging you k10,000 each month until you submit your return. If you submit after 14 months, it will be k75,000 + 10,000 x 14 months =k215,000

For limited companies

Late submission (submitting after December 2021) k300,000 then MRA will be charging you k50,000 each month until you submit your return. If you submit after 14 months, it will be k300,000 + 50,000 x 14 months =k1,000,000.

When do my business qualify to pay Tax?

Once you start operating your business, you qualify to get registered to be paying taxes. This is so regardless, of size, location or nature.

How much do you charge to process MRA tax registration?

KB Accounting Services does not charge any money for Tax Registration. You can be assisted at our Blantyre and Lilongwe offices.

What type of tax does my business needs?

The type of taxes one should register depends on a number of factors such as Nature of organisation, Availability of employees, Annual Income etc. All profit-making organisation/companies get registered for income tax. If you make payments to suppliers, you will be eligible to get registered for Withholding Tax (WHT) and you will be eligible for Value Added Tax (VAT) if your annual income exceeds MKW25,000,000. It is advisable to consult a Tax Consultant before you proceed.

Resources

Resources & Articles For Managing Your  Finances On Your Own

5 Reasons Why Businesses Fail in Malawi

5 Reasons Why Businesses Fail in Malawi

Money for the business is not yours until the business decides to pay you through profits, as salary or if you have opted to make drawings for personal use and the business has accepted.