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HMRC internal manual

Double Taxation Relief Manual

Malawi: Dividends

No tax is deducted from dividends paid by a Malawi company to its shareholders, dividend income being assessed directly on the shareholder provided the company’s tax affairs are up to date. If a United Kingdom resident recipient of a dividend is subject to United Kingdom tax (see INTM162020) on such a dividend, Article 6(4), exempts him from any Malawi tax on it.

A Malawi company pays tax on its profits and a United Kingdom company which controls, directly or indirectly, at least 10 per cent of the voting power in the Malawi company paying the dividend is entitled to credit for the underlying tax (see INTM164010(d)) against the United Kingdom tax on the dividend (Article 13(2)(b)).