PAYE Calculator Malawi

You can use our free Paye calculator in malawi online for quick computation of income tax payable, net salary and paye percentage with MRA Paye calculator.

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PAYE Information

Pay As You Earn (PAYE) is a method of collecting Income Tax from employees on their earnings. Employers deduct PAYE when making payments, whether weekly, fortnightly, or monthly.

Eligibility for PAYE: Any employer who pays an employee in excess of K100,000 per month or K1,200,000 per year is liable to deduct PAYE and remit it to MRA.

PAYE Rates (Employment):

• The first K100,000 is taxed at 0%.
• The next K350,000 is taxed at 25%.
• The next K2,050,000 is taxed at 30%.
• Any excess over K2,500,000 is taxed at 35%.

Registration and Payment: Employers must register eligible employees within 21 days of becoming an employer. PAYE deductions are due when earnings are given and must be remitted to MRA not later than the 14th day from the end of the month during which the tax was deducted.

Advantages of PAYE to taxpayers:

• Convenience of paying when funds are available.
• Easy and cost-effective payment process.
• Allows payment by installments rather than a lump sum.

Consequences of non-compliance: Employers failing to remit or register employees for PAYE will be required to pay all taxes due plus a penalty of 20% for the first month and 5% per month thereafter.