Tax collector, the Malawi Revenue Authority (MRA), has announced the extension of its Voluntary Compliance Window (VCW) to November 30.
Initially, the VCW was set to close on October 31.
Government introduced the window to provide relief to businesses in the wake of the Covid-19 pandemic, among other reasons.
MRA Head of Corporate Affairs, Steve Kapoloma, told journalists in Blantyre on Friday that the window also provides businesses an opportunity to settle unpaid tax arrears in installments of up to six months without paying penalties, interest or any other charges.
“This has been done to give relief to businesses that are suffering due to the economic impact of Covid-19 pandemic and it will also help us broaden the tax base,” Kapoloma said on Friday.
He said MRA has extended the VCW with one month after receiving “numerous requests from taxpayers”.
“We would like to encourage all companies and businesses to take advantage of this window because after November 30, MRA will engage in rigorous investigations that will end in punishing businesses, that despite being given this opportunity, failed to comply,” Kapoloma warned.
During the window, limited companies that do not have audited financial statements will be allowed to submit VCW applications with self-assessed or unaudited accounts.
“However, they will be required to submit audited accounts by February 28, 2021”, Kapoloma added.
As Friday, MRA had received over 1,300 applications which translated into a gross collection of K13 billion in taxes.
VCW was introduced by the government to provide relief to business people who have been economically affected by the Covid-19 pandemic by allowing them to pay tax arrears.
Eric Msikiti is a Senior Reporter/News Producer at Times Group. Though relatively young, Eric boasts years of experience in Malawi’s media industry.