The Malawi Revenue Authority (MRA) has moved to clear confusion and fear surrounding the proposed rental income tax, saying the tax will only affect landlords who earn K170,000 or more per month from rent.
MRA spokesperson Wilma Chalulu
MRA officials say the majority of landlords in Malawi will not be affected because most rental properties charge far below the K170,000 threshold.
Speaking on the matter, MRA spokesperson Wilma Chalulu explained that the new measure is specifically designed to target high-value rental income, not ordinary landlords with small or modest houses.
“Landlords who earn less than K170,000 per month from rent will not pay this tax. Only those earning K170,000 and above will be required to pay,” said Chalulu.
She further explained that even among those who qualify, the tax rate has been set at 20 percent, meaning that only a portion of their rental income will be deducted as tax.
According to MRA, public fear that “everyone will be taxed” is misplaced.
Chalulu said many Malawians are worried unnecessarily, yet in reality, most people who rent out houses in townships and low-income areas are charging between K30,000 and K100,000, which is well below the taxable level.
The authority has also warned landlords against increasing rent in response to the new tax.
MRA says the tax is not meant to be transferred to tenants.
“This tax is on income that landlords are already earning. It is not a reason to raise rent. We are not introducing a new charge on tenants,” Chalulu said.
She stressed that the measure is aimed at fairness, so that people who earn high rental income also contribute to national revenue, just like salaried workers and business owners already do.
Starting this month, MRA will deploy enumerators who will move from house to house across the country to collect information on rental properties. The teams will identify which houses are being rented out and which ones are owner-occupied.
The data will help MRA determine who qualifies for the tax and who does not.
Government says the rental income tax is part of a broader plan to widen the tax base and reduce over-reliance on a small group of taxpayers.
Officials argue that many people earn large incomes from property but remain outside the tax system, forcing the burden to fall on ordinary workers and formal businesses.
By targeting only high-value rentals, government says it wants to increase domestic revenue without hurting low-income households or small-scale landlords.
