TAXATION

CHAPTER 41:01
TAXATION

ARRANGEMENT OF SECTIONS

    SECTION

PART I
PRELIMINARY

    1.    Short title

    2.    Interpretation of certain general terms

    3.    Commissioner of Taxes

PART II
ADMINISTRATION

    4.    Delegation of functions by Commissioner

    5.    Report by Commissioner

    6.    Officers to observe secrecy

    7.    Forms

    8.    Service of documents

    9.    Service of oral notices

    10.    Validity of documents

PART III
INCOME

Division 1
Determination of Assessable Income

    11.    Income and assessable income

    12.    Special circumstances in which income deemed to have accrued

    13.    Exemption

    14.    Income annuities

    15.    Non-recognition of capital gain or capital loss in certain cases

    15A.    Involuntary conversion of assets

    15B.    Capital gains on disposal of business assets

    16.    Income—payments for services

    17.    Assessment to tax for single terminal

    18.    Sums payable by an employer for expenses of an employee

    19.    Expenses and benefits. Asset belonging to employer

    20.    Expenses and benefits. Employer may furnish statement

    21.    Sections 18, 19 and 20 not to apply in certain cases

    22.    Income—passages

    23.    Premiums

    24.    Timber sales

    25.    General

    26.    Foreign exchange gain and foreign exchange loss

    27.    Income deemed to have accrued in Malawi

Division 2
Deductions, Determination of Taxable Income

    28.    Allowable deductions in determining taxable income

    29.    Allowable deductions—educational passages

    30.    Personal allowances

    31.    Alimony

    32.    Allowable deductions—repairs

    33.    Allowable deductions—capital allowances

    34.    Allowable deductions—premiums paid

    34A.    Mineral royalty allowable deduction

    35.    Allowable deductions—bad debts

    36.    Allowable deductions—doubtful debts

    36A.    Allowable deductions—export allowance

    36B.    Allowable deductions—payroll levy

    36C.    Allowable deductions—allowance for employing person with disability

    37.    Allowable deductions—pensions funds

    38.    Allowable deductions—sale of timber

    39.    Allowable deductions—research, etc.

    39A.    Allowable deductions—social contribution

    40.    Allowable deductions—annuity payment

    41.    Allowable deductions—new business initial expenditure

    41A.    Allowable deductions—training allowance

    41B.    Allowable deductions—transport allowance

    42.    Allowance of losses—general

    43.    Allowance of losses—change in shareholding in company

    44.    Allowance of losses—formation of new company

    45.    Deductions not to be made

    46.    Deductions not admissible as regards income derived from trade

Division 3
Stock and Work in Progress

    47.    Trading stock and work in progress to be taken into account

    48.    Valuation of stock and work in progress at end of year

    49.    Valuation of stock and work in progress at beginning of year

    50.    Definition of cost and market selling value

    51.    Domestic consumption

    52.    Gifts and sales

    53.    Valuation of livestock

Division 4
Determination of Taxable Income where adequate Books and Records are kept

    54.    Books of accounts

    55.    Period of accounts

Division 5
Businesses carried on Partly in and Partly out of Malawi and Businesses Controlled Abroad

    56.    Profits of non-resident persons from sale of exported produce

    57.    Persons carrying on business which extends beyond Malawi

PART IV
SPECIAL TRADES AND CASES

    58.    Taxation of income derived from farming

    59.    Cooperative agricultural societies

    60.    Consumers cooperative societies

    61.    Clubs, etc., formed, etc., for pleasure or recreation

    62.    Building society interest

    63.    Insurance business

    64.    Hire purchase or other agreements providing for postponement of ownership of property

    64A.    Taxation of mining project

PART IVA
MINERAL ROYALTY

    64B.    Mineral royalty

    65.    Approval of pension fund or provident fund

PART V
TAXATION OF COMPANIES

Division 1
Income Tax

    66.    Charge

    67.    Public officers of companies

    68.    Duty of companies to furnish returns

    69.    Return of dividend

    70.    Dealings by a company in another company’s shares

    70A.    Taxation of dividends

    70B.    Recognition of gain or loss on distribution of property with respect to shares

    70C.    Effect of a distribution of shares of a company to its shareholders

    70D.    Distribution in complete liquidation of a company

    70E.    No gain or loss on certain contributions to capital

    70F.    Reorganization and qualified reorganization of a company

PART VI
INDIVIDUALS

    71.    Charge

    72.    Deemed taxable income

    73.    Income of married women and minor children

    74.    Returns and accounting period for partnerships

PART VII
TRUSTEES

    75.    Special provisions in connexion with income derived from assets in deceased and insolvent or bankrupt estates

    76.    Tax payable by trust

PART VIIA Non-Residents

    76A.    Liability for non-resident tax

PART VIII
REPRESENTATIVE TAXPAYERS

    77.    Representative taxpayers

    78.    Liability of representative taxpayer

    78A.    Protection for certain trustees

    79.    Right and personal liability of representative taxpayer

    80.    Company regarded as agent for absent shareholder

    81.    Power to appoint agent

    82.    Remedies of Commissioner against agent and trustee

    83.    Power to require information

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