Taxation

Value added tax

Value added tax

A fixed 20 per cent Value Added Tax (VAT) is charged for most products, with some exceptions to certain food, basic products used in agriculture, sports equipment and some other articles.

Income

A resident in Madagascar is taxed on their worldwide income, whereas a non-resident is taxed on income from sources in Madagascar only.

An individual tax rate of 20 per cent is payable on salary above MGA 250,000 or non-employment income earned in the preceding year. The fiscal year runs from 1 January to 31 December, although a taxpayer who has a business may elect a different tax year.

Corporate

The corporate tax rate on chargeable income of companies:

  • Resident - 20 per cent
  • Non-resident - 10 per cent.