Malawi capital gains tax calculator
Malawi has no separate capital gains tax: 100% of a capital gain is added to your income and taxed at your individual rate, with the basis adjusted for inflation. From 14 April 2026 shares listed on the Malawi Stock Exchange pay a final 2% withholding on the gross proceeds instead.
Work out the tax on a share, property, crypto or other disposal from your dates and costs. Enter sales by hand or import your broker CSVs, and the calculator splits multi-parcel sales under FIFO, applies the year’s rules and shows the arithmetic behind the final figure. Everything stays in your browser.
Rates current as of 2026-09-19, from the Malawi Revenue Authority and the sources each record cites.
Current rules
The rules behind the number
The treatment by year of assessment (1 July to 30 June)
| Year of assessment | Other capital gains | Listed shares (MSE) | Principal residence | Personal assets |
|---|---|---|---|---|
| 2021/22 | Added to income, taxed on the individual scale | Exempt if held 12 months or more, otherwise added to income | Exempt | Exempt |
| 2022/23 | Added to income, taxed on the individual scale | Exempt if held 12 months or more, otherwise added to income | Exempt | Exempt |
| 2023/24 | Added to income, taxed on the individual scale | Exempt if held 12 months or more, otherwise added to income | Exempt | Exempt |
| 2024/25 | Added to income, taxed on the individual scale | Exempt if held 12 months or more, otherwise added to income | Exempt | Exempt |
| 2025/26 to 30 Dec 2025 | Added to income, taxed on the individual scale | Exempt if held 12 months or more, otherwise added to income | Exempt | Exempt |
| 2025/26 from 31 Dec 2025 | Added to income, taxed on the individual scale | Added to income regardless of the holding period | Exempt | Exempt |
| 2025/26 from 14 Apr 2026 | Added to income, taxed on the individual scale | 2% final withholding on the gross proceeds, deducted at source | Exempt | Exempt |
| 2026/27 | Added to income, taxed on the individual scale | 2% final withholding on the gross proceeds | Exempt | Exempt |
| 2027/28 (planning) | Added to income, taxed on the individual scale | 2% final withholding assumed continuing | Exempt | Exempt |
Rules, rates and exemptions
| Rule | Value |
|---|---|
| Mechanism | No separate capital gains tax: 100% of the gain is added to taxable income and taxed on the individual scale |
| Basis | Selling price less the cost basis adjusted by the consumer price index (section 2 of the Taxation Act) |
| Individual scale, 2021/22 to 2023/24 | 0% on the first MK1,200,000, 30% on the excess |
| Individual scale, 2024/25 | 0% to MK1,800,000, 25% to MK6,000,000, 30% to MK30,600,000, 35% above |
| Individual scale, from 31 December 2025 | 0% to MK2,040,000, 30% to MK18,840,000, 35% to MK120,000,000, 40% above |
| Listed shares from 14 April 2026 | Final 2% withholding on the gross proceeds, withheld by the broker or the Malawi Stock Exchange, charged whether the sale makes a gain or a loss |
| Former listed-share exemption | MSE shares held not less than twelve months were exempt until the exemption was removed with effect from 31 December 2025 |
| Main home | The disposal of an individual's principal residence is not recognised (section 15(2)) |
| Personal and domestic assets | Outside the charge when not used in a trade |
| Business assets | Within the charge; section 15B gives rollover relief for a qualifying replacement acquired within 18 months (not modelled here) |
| Losses | A capital loss offsets the year's capital gains only, up to the lesser of the loss or the gain, and carries forward until fully deducted (section 28(3)-(4)) |
| Provisional tax | The MRA instructs a 30% provisional tax on a capital gain, reconciled at assessment |
| Filing | Returns for the year of assessment ending 30 June are due within 180 days of the accounting date |
| VAT | 17.5% from 31 December 2025, up from 16.5% |
Tables are drawn from the source records retrieved 2026-09-19; each links back to the authority page above. The basis is CPI-indexed but this calculator holds no Malawian CPI series, so it shows the gain before indexation relief. Crypto has no dedicated provision, so the general capital-asset reading applies.
Questions
Malawi capital gains questions
How much is capital gains tax in Malawi?
Malawi does not levy a separate capital gains tax. A capital gain is the selling price less the CPI-adjusted basis, and 100% of it is added to your taxable income and taxed at your individual income-tax rate, so the rate depends on your other income. From 14 April 2026 a disposal of shares listed on the Malawi Stock Exchange is instead charged a final 2% withholding on the gross proceeds.
What is the 2% withholding tax on shares?
The Taxation (Amendment) Act 2026, effective 14 April 2026, replaced the capital gains tax on the disposal of listed shares with a final 2% withholding on the gross proceeds. It is deducted at source by the broker, the Malawi Stock Exchange or another person designated under the law, is final, and applies whether the sale made a gain or a loss, so a loss on a listed disposal is not deductible.
Were shares ever exempt in Malawi?
Yes. The First Schedule, paragraph (hc), exempted a gain on shares traded on the stock exchange if they were held for not less than twelve months. The Taxation (Amendment) and VAT (Amendment) (No.2) Acts 2025 removed that exemption with effect from 31 December 2025, so from that date every share gain is within the charge regardless of the holding period.
Do losses reduce the tax?
A capital loss realized in the year is deductible only up to the lesser of the loss or that year's capital gain, and any unused amount carries forward until fully deducted, with no time limit (Taxation Act, section 28(3)-(4)). Losses never offset salary or other income. A loss on a listed disposal under the 2% final withholding is not deductible, because that tax rides the proceeds.
How does Malawi tax a capital gain?
Malawi charges no separate capital gains tax: a capital gain is the disposal amount less the asset's adjusted basis (section 2 of the Taxation Act), 100% of the gain is included in taxable income and taxed at the taxpayer's applicable income-tax scale, subject to capital-loss offset. The MRA's CPI notice instructs a 30% provisional tax on the capital gain, an instalment reconciled at assessment against the scale. Sources: https://www.mra.mw/admin/storage/download_files/1767942826_CONSUMER%20PRICE%20INDICES%20%28CPIs%29%20FOR%20THE%20MONTH%20DECEMBER%202025.pdf and https://www.finance.gov.mw/documents/uploads/2025-02/Domestic%20Revenue%20Mobilization%20Strategy%202021-2026.pdf
What was the listed-share exemption and when did it end?
The Taxation (Amendment) and VAT (Amendment) (No.2) Acts 2025 removed the First Schedule exemption for shares traded on the stock exchange with effect from 31 December 2025, so all gains from the sale of shares became subject to income tax regardless of the holding period. An MRA notice dated 31 December 2025 announced the measures from 30 December 2025, while the MRA's notice on the Acts states 31 December 2025; this record uses the statutory date, 31 December 2025. Sources: https://www.mra.mw/admin/storage/download_files/1767182853_NEW%20TAX%20MEASURES.pdf and https://www.mra.mw/admin/storage/download_files/1767952247_NEW%20TAX%20MEASURES...pdf
What is the 2% final withholding on listed shares?
From 14 April 2026 the Taxation (Amendment) Act 2026 replaced the capital gains tax on the disposal of shares listed on the Malawi Stock Exchange with a final withholding tax of 2% of the gross proceeds, deducted at source by the broker, the Malawi Stock Exchange or any other person designated under the law. The tax is final and rides the proceeds, not the gain, so a sale at a loss still bears it. The MRA lists the measure as final tax, with exemptions, without itemising them at retrieval. Sources: https://www.mra.mw/press/new-measures-for-customs-excise-and-domestic-taxes-for-the-fiscal-year-202627 and https://www.finance.gov.mw/documents/uploads/2026-03/Doc%201_2026-27%20Budget%20Policy%20Statement_0.pdf
How is real property taxed?
Real property: the gain is the selling price less the CPI-adjusted basis and is included in taxable income. The disposal of a principal residence is exempt, and so are personal and domestic assets of an individual not used in a trade. Source: https://www.mra.mw/assets/upload/downloads/MALAWI_TAX_INCENTIVES_HANDBOOK-VOL_3_-_JUNE_20221.pdf
Is the cost basis adjusted for inflation?
Basis indexation: the MRA instructs taxpayers to compute an indexation factor as the CPI for the disposal period divided by the CPI for the acquisition period and to multiply the cost by it. No CPI series is held under /data for Malawi, so this calculator computes the gain on the unindexed cost and therefore states the gain before indexation relief. Sources: https://www.mra.mw/admin/storage/download_files/1767942826_CONSUMER%20PRICE%20INDICES%20%28CPIs%29%20FOR%20THE%20MONTH%20DECEMBER%202025.pdf and https://www.mra.mw/admin/storage/download_files/1750143158_PUBLIC%20NOTICE-USE%20OF%20CONSUMER%20PRICE%20INDICES%20%28CPIs%29%20FOR%20ADJUSTING%20BASIS%20OF%20A%20CAPITAL%20ASSET%20UNDER%20SECTION%202%20OF%20THE%20TAXATION%20ACT%20-%20June%202025.pdf
How do capital losses work?
Losses: a capital loss realised in the year is deductible only to the extent of the loss or that year's capital gain, whichever is lesser; any unused amount carries forward until fully deducted (Taxation Act section 28(3)-(4)). This is a general capital-loss pool, not a one-year expiry. Source: https://www.mra.mw/assets/upload/downloads/Taxation_Act.pdf
How is crypto taxed in Malawi?
Crypto: no crypto-specific provision, rate, exemption or holding-period test was located in the official tax materials reviewed. This calculator applies the general capital-asset reading as a provisional treatment; a trading business may instead produce ordinary business income. Source: https://www.mra.mw/assets/upload/downloads/Taxation_Act.pdf
When are returns due?
The statutory year of assessment is a 12-month period ending 30 June, and income-tax returns are due within 180 days from the accounting date. The Commissioner may accept accounts ending on another date. Sources: https://www.mra.mw/assets/upload/downloads/Taxation_Act.pdf and https://www.mra.mw/assets/upload/downloads/Tax_Return_Brochure.pdf