Jurisdiction overviewTax in Madagascar
Last reviewed: · by TaxProsRated editorial
Key points
Madagascar's Direction Generale des Impots (DGI) administers the tax system. Personal income tax (IRSA) runs five progressive brackets from 0% to 20%. Corporate income tax (IR) is 20% flat, with separate regimes for mining and petroleum. TVA (VAT) is 20%. Madagascar has roughly 5 active double tax treaties — one of the thinnest networks in the Indian Ocean region. The Malagasy Ariary (MGA) is one of only two non-decimal currencies in the world.
After Greenland, Papua New Guinea, and Borneo. Population ~30 million. Capital: Antananarivo.
Bourbon vanilla from the Sava region northeast. A major export at $300–500M/year — though prices are volatile and cyclone-vulnerable.
One ariary = 5 iraimbilanja, not 100. Only two such currencies exist globally — the other is Mauritania's Ouguiya.
Who is the tax authority?
Madagascar's Direction Generale des Impots (DGI) sits under the Ministry of Economy and Finance. The DGI administers all national taxes under the Code General des Impots (CGI) and successive Loi de Finances amendments.
Three additional codes shape the landscape. The Code des Investissements (Loi 2007-036, amended Loi 2008-001) governs investment incentives. The Code Minier 2005 (and amendments) governs mining royalties and revenue tax. The Code Petrolier runs production-sharing contract (PSC) arrangements for oil and gas.
Madagascar participates in four regional frameworks: SADC, COMESA, Indian Ocean Commission (IOC), and AfCFTA. None replace the bilateral DTA network, which remains very thin.
What is the tax year and when are returns due?
The individual tax year follows the calendar year (1 January to 31 December). IRSA is withheld monthly from employee salaries by the employer.
Corporate IR returns are due 15 May for the prior fiscal year. TVA-registered businesses file monthly TVA returns. Provisional CIT flows through quarterly acomptes payments rather than a single annual settlement.
Who counts as a Madagascar tax resident?
The CGI sets three independent residency tests. An individual is a Madagascar tax resident if any one applies:
- Habitual residence in Madagascar (principal home or centre of life)
- Physical presence of 183 days or more in the tax year
- Professional activity exercised primarily in Madagascar
Meet any one and the individual falls under the Madagascar tax net. Madagascar uses a predominantly territorial approach — residents are generally taxed on Madagascar-source income, not worldwide income. Cross-border professionals and diaspora workers should verify which income streams fall inside the Malagasy source-income perimeter.
Deep-dive: see expat and cross-border tax in Madagascar for how the territorial rule applies in practice.
What are the personal income tax rates?
IRSA (Impot sur les Revenus Salariaux et Assimiles) uses five monthly brackets:
| Monthly income (MGA) | Rate |
|---|---|
| 0 – 350,000 | 0% |
| 350,001 – 400,000 | 5% |
| 400,001 – 500,000 | 10% |
| 500,001 – 600,000 | 15% |
| 600,001 and above | 20% |
Self-employed income falls under a separate Group framework within the CGI, with different filing and payment mechanics than salaried IRSA. CNaPS (National Social Security) contributions also apply on employment income on top of the IRSA brackets.
Deep-dive: see self-employed tax in Madagascar for how IRSA and CNaPS interact.
How does corporate tax work?
The standard IR (Impot sur les Revenus) rate for resident companies is 20% flat. Two sectors operate under separate regimes.
Flat rate for resident companies under the CGI. Covers retail, services, manufacturing, agri-processing, tourism, and most commercial activity.
Royalty 2% on gross production revenue + IR 20% on net income. Governed by Code Minier 2005 (as amended). Ilmenite, nickel-cobalt, sapphire, and uranium prospects fall under this framework.
Oil and gas governed by Code Petrolier. Each project uses a production-sharing contract (PSC) framework with negotiated royalty and profit-oil split. Standard IR rate applies to contractor net income.
Withholding tax on dividends paid to non-residents is 10%. Non-resident interest and royalty withholding rates are set in the CGI; treaty rates apply where a DTA exists. Tax losses carry forward for 5 years. Pillar Two global minimum tax is not transposed — Madagascar is not a member of the OECD Inclusive Framework.
Free-zone enterprises (Zones Franches Industrielles, ZFI) benefit from reduced IR rates during incentive periods under Loi 2017-023 — ranging from 0% to 10% depending on the zone and period. Qualifying requires meeting investment and employment thresholds.
Deep-dive: see small business tax in Madagascar for the sole-trader vs incorporated comparison.
What about TVA and other indirect taxes?
TVA (Taxe sur la Valeur Ajoutee) is Madagascar's VAT equivalent. The standard rate is 20% under the CGI.
| Rate | Applies to |
|---|---|
| 20% | Standard — most goods and services |
| 5% | Medicines, books (reduced categories under CGI) |
| 0% | Exports (zero-rated, not exempt) |
TVA registration becomes mandatory once annual revenue reaches MGA 200 million. Below that threshold, registration is voluntary. TVA-registered businesses file monthly TVA returns.
Customs duties apply on imports at rates set by the Malagasy customs tariff schedule. Excise duties (Droits d'Accise) apply to alcohol, tobacco, and fuel. The vanilla export sector benefits from dedicated export procedures given its economic importance.
Deep-dive: see VAT and sales tax in Madagascar for the TVA mechanics and reduced-rate categories.
Currency framework: the Malagasy Ariary (MGA)
MGA: 1 ariary = 5 iraimbilanja (not 100)
The Malagasy Ariary adopted in 2003 (replacing the Malagasy Franc at 1:5) is managed-floating since 1994 IMF reforms. The only other non-decimal currency is Mauritania's Ouguiya (1 UM = 5 khoums). Approximate rate: 1 USD ≈ 4,500 MGA — volatile; verify before filing. Cross-border transactions and mining royalties are typically denominated in USD or EUR and converted at Banky Foiben'i Madagasikara (BFM) rates.
How are cryptoassets taxed?
Banky Foiben'i Madagasikara (BFM), Madagascar's central bank, has issued warnings about cryptoassets since 2018. No formal crypto-asset tax law or dedicated licensing framework exists as of 2026.
Where individuals declare crypto gains, the DGI treats them under existing income-tax categories in the CGI. Lack of a formal framework means treatment is inconsistent, and the BFM restrictions create additional compliance uncertainty for crypto-active residents.
Deep-dive: see crypto taxation in Madagascar for current DGI guidance on digital-asset declarations.
What is the treaty network?
Madagascar has approximately 5 active bilateral double tax agreements — one of the thinnest networks in the Indian Ocean region. Key partners: France (1983 anchor treaty), Mauritius (1994), Canada (limited scope), Morocco, and Senegal. There is no US DTA, no UK DTA, and no China DTA.
The thin DTA network means most cross-border income flows without bilateral relief. Treaty-shopping via France or Mauritius is a common structuring approach, though substance requirements must be met. Madagascar has not signed the OECD Multilateral Instrument (MLI). SADC, COMESA, and IOC frameworks provide regional cooperation but do not substitute for bilateral DTAs.
Deep-dive: see tax treaty relief in Madagascar for the bilateral rate schedules and unilateral relief options.
Where does Madagascar sit in the Indian Ocean cohort?
Madagascar anchors the Indian Ocean Island States cohort alongside Comoros (KM), Mauritius (MU), Seychelles (SC), Mayotte (YT), and Reunion (RE). These six jurisdictions share Indian Ocean Commission (IOC) membership and overlapping COMESA/SADC frameworks — yet their tax systems diverge sharply.
Meet a Madagascar taxpayer
Madagascar's vanilla and mining economy
Madagascar grows approximately 80% of the world's Bourbon vanilla — primarily in the Sava region northeast. Export revenues reach $300–500M/year but are highly price-volatile and cyclone-vulnerable. Several major cyclones since 2017 have affected harvests.
Madagascar holds significant ilmenite (titanium ore) and nickel-cobalt deposits. QMM (Rio Tinto) operates the Taolagnaro ilmenite mine. Sapphire production peaked as world-leading in the mid-2010s. Uranium prospects exist but remain largely undeveloped.
Approximately 90% of Madagascar's species are endemic — including all its lemur genera. Conservation-finance and carbon-offset frameworks are emerging. These create novel asset classes that sit in a grey zone under the CGI.
Common pitfalls and penalties
Foreign companies and individuals trip on a recurring set of traps in Madagascar:
Royalty 2% + IR 20% under Code Minier runs parallel to the standard CGI. Projects under mining conventions may also benefit from fiscal-stabilisation clauses — check each convention individually.
No US, UK, or China treaty. Most non-treaty income faces unilateral withholding at CGI rates. Treaty-shopping via Mauritius is common but requires genuine economic substance.
The OECD Multilateral Instrument has not been adopted. Use each bilateral DTA text directly — no automatic BEPS treaty amendments apply.
The ariary can move significantly against USD/EUR. Mining royalties and import duties denominated in foreign currency create conversion-rate risks and MGA-base tax-calculation discrepancies.
The CGI is amended every year by the Finance Law. Rates, thresholds, and sector incentives can shift annually. Verify against the latest promulgated Loi de Finances before relying on any single source.
Madagascar experienced a political transition in 2009 and was readmitted to the African Union in 2014. The tax framework has been continuous through transitions, but administrative capacity and enforcement can vary by period.
Free-zone enterprises under Loi 2017-023 can access 0–10% CIT during incentive periods. Eligibility requires investment and employment thresholds — verify current ZFI criteria with the relevant authority before relying on the reduced rate.
Standard audit limitation period is 5 years. Fraud or mining-sector matters extend this period. Keep records for at least 6 years to cover any extended-SOL scenario.
Decision flow: do you need a Madagascar Tax-Adviser?
When should you talk to a Madagascar Tax-Adviser?
Some situations are straightforward with the DGI portal. Others need specialist guidance fast:
- Your income includes rental, investment, or business income on top of salaried employment
- Your operation falls under the Code Minier (mining) or Code Petrolier (petroleum) — separate regimes apply
- You are structuring through the ZFI free-zone framework under Loi 2017-023
- Your income flows involve France, Mauritius, Canada, Morocco, or Senegal — the only DTA partners
- You have cross-border income from a country without a Madagascar DTA (US, UK, China, Germany, etc.)
- You are moving in or out of Madagascar and need to establish or exit residency under the CGI territorial test
- You received a DGI notice of assessment, audit letter, or back-tax query
- You hold cryptoassets and want to understand the BFM advisory context before declaring
Find vetted Madagascar practitioners through the directory below.
This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always check current figures on the DGI website or with a licensed Madagascar practitioner before filing.
Frequently asked
Who is the Madagascar tax authority?
Direction Generale des Impots (DGI), under the Ministry of Economy and Finance. The DGI administers all national taxes under the Code General des Impots (CGI) and annual Loi de Finances amendments.
When is the Madagascar annual return due?
IRSA is withheld monthly by employers. Corporate IR annual returns are due 15 May for the prior fiscal year. TVA-registered businesses file monthly TVA returns. Provisional CIT flows through quarterly acomptes.
Who is a Madagascar tax resident?
An individual is a Madagascar tax resident if any one of three tests applies: habitual residence in Madagascar; physical presence of 183 days or more; or professional activity exercised primarily in Madagascar. Madagascar uses a predominantly territorial approach — residents are taxed on Madagascar-source income.
What are the Madagascar personal income tax rates?
IRSA uses five monthly brackets: 0% on MGA 0–350,000; 5% on 350,001–400,000; 10% on 400,001–500,000; 15% on 500,001–600,000; and 20% above MGA 600,000. CNaPS social security contributions also apply on employment income.
How does Madagascar corporate tax work?
Standard IR (CIT) is 20% flat for resident companies. Mining projects under Code Minier pay Royalty 2% plus IR 20%. Petroleum operates under PSC production-sharing contract framework. Withholding on non-resident dividends is 10%. Pillar Two is not transposed. Tax losses carry forward 5 years.
What is the Madagascar TVA rate?
TVA (VAT) is 20% standard rate under the CGI. Reduced 5% applies to medicines and books. Exports are zero-rated. TVA registration is mandatory above MGA 200 million annual revenue.
How does Madagascar tax cryptoassets?
Banky Foiben'i Madagasikara issued warnings about cryptoassets from 2018. No formal crypto-asset tax law exists. Where declared, gains fall under existing CGI income-tax categories. The BFM advisory restrictions create additional compliance uncertainty.
How many tax treaties does Madagascar have?
Approximately 5 active bilateral double tax agreements: France (1983), Mauritius (1994), Canada (limited), Morocco, and Senegal. There is no US, UK, or China DTA. Madagascar has not signed the OECD Multilateral Instrument (MLI). SADC, COMESA, and IOC frameworks provide regional cooperation but do not substitute for bilateral treaties.
Major tax firms in Madagascar
Verified directory of the largest accounting + tax practices operating in Madagascar. Listings are entity-level reference cards — claim flow is open to firm representatives.
- Big 4
Deloitte Madagascar
- Big 4
PwC Madagascar
- National
BDO Madagascar
- National
Mazars Madagascar
Find a tax pro in Madagascar
Browse credentialed pros serving Madagascar — filter by specialty, language, and credential type.
Browse the Madagascar directorySources
The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.
- DGI (Madagascar) · accessed
- Government of Madagascar · accessed
- Government of Madagascar · accessed
- Ministry of Economy and Finance (Madagascar) · accessed
- PwC Worldwide Tax Summaries · accessed
- Government of Madagascar · accessed
- Banky Foiben'i Madagasikara · accessed
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Madagascar as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.