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.


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.


The corporate tax rate on chargeable income of companies:

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