Tax in Madagascar

Who is the tax authority and where do filings live?

Madagascar's Direction Generale des Impots (DGI) under the Ministry of Economy and Finance administers Madagascar's tax system [SC1]. Substantive law: Code General des Impots (CGI), Code des Investissements (Loi 2007-036 amended Loi 2008-001), and successive Loi de Finances amendments. Madagascar is a SADC, COMESA, IOC, and AfCFTA member.

What is the tax year and when are returns due?

Individual tax year is the calendar year. IRSA withheld monthly. Corporate annual returns due 15 May for prior fiscal year [SC1]. TVA monthly returns. Provisional CIT through quarterly acomptes regime.

Who is a Madagascan tax resident?

Under CGI, an individual is tax resident if (a) habitual residence in Madagascar, (b) physically present 183+ days, OR (c) Madagascar-source professional activity [SC2]. Residents taxed on Madagascar-source income (territorial framework predominantly).

What are the personal income tax rates?

Progressive IRSA brackets: 0 percent up to MGA 350,000 monthly; ascending rates 5/10/15/20 percent ascending [SC1]. Top 20 percent above MGA 1,000,000 monthly. Personal allowance applies. Self-employment under separate Group framework.

How does Madagascar's corporate tax work?

IR (CIT) 20 percent flat for resident companies [SC2]. Mining sector under separate framework with Royalty 2 percent + Tax on Revenues 20 percent. Petroleum under PSC framework. Withholding on dividends to non-residents 10 percent. Pillar Two not transposed. Tax losses 5 years.

What about VAT?

TVA 20 percent under CGI [SC3]. Zero-rated on exports. Reduced rates on certain specified categories.

How are cryptoassets taxed?

Banky Foiben'i Madagasikara advisory: cryptoassets restricted [SC2]. Where declared, gains under existing income-tax categories.

What is the treaty network and what are the audit triggers?

Madagascar has approximately 4 active double tax treaties [SC4]. MLI not signed. SADC, COMESA, and IOC frameworks. Standard SOL 5 years; extended for fraud or for mining-sector matters.

What are the common penalties and pitfalls for foreigners?

Penalty framework: late filings, failure to file, incorrect declarations [SC5]. Common pitfalls: (1) mining-sector framework with separate Royalty 2 percent + IR 20 percent for projects under Code Minier; (2) post-2009 political-stability-restoration framework affecting tax administration progressively; (3) Pillar Two not transposed; (4) very limited treaty network (4 DTCs); (5) MLI not signed; (6) francophone tradition; (7) Code des Investissements (Loi 2007-036 as amended) framework for incentivised projects; (8) Loi de Finances annual amendments since 2018; (9) AfCFTA member; (10) MGA-denominated tax base with ariary volatility affecting cross-border flows; (11) parallel SADC/COMESA/IOC framework membership; (12) SEZ/Free Zone regime under Loi 2017-023 critical for foreign investors.