Madagascar: Business Environment
Real estate ownership tax is imposed annually at the rate of 5% to 10% on the rental value of the property.
Registration fees are applicable at rates ranging from 0.5% to 5%, depending on the nature of the transaction.
Insurance contracts are taxed at a rate ranging from 3% to 20% of the insurance premiums.
A payroll tax is levied at a rate of up to 20% on the total taxable remuneration of employees, including salaries, allowances, and benefits in kind. Employers contribute up to 13% of eight times the legal minimum salary per employee for social security ("Caisse Nationale de Prévoyance Sociale"), plus 5% of the total amount of taxable remuneration for health contributions.
Several local taxes (also called para-fiscal taxes) are levied, including:
Madagascar | Sub-Saharan Africa | United States | Germany | |
Number of Payments of Taxes per Year | 23.0 | 36.6 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 183.0 | 284.8 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 38.3 | 47.3 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Salary income tax (IRSA - Impôt sur les Revenus Salariaux et Assimilés) | |
Turnover up to MGA 350,000 | 0%, with a minimum tax of MGA 2,000 |
MGA 350,001 to 400,000 | 5% |
MGA 400,001 to 500,000 | 10% |
MGA 500,001 to 600,000 | 15% |
Turnover above MGA 600,000 | 20% |
Individual business income tax (IR - Impôt sur les Revenus) | |
Turnover up to MGA 200 million | 5% (with a possible reduction of 70%) of the annual turnover (with a minimum tax of MGA 16,000 or 150,000 according to the activity) |
Turnover above MGA 200 million | Taxed in the same way as corporations |
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Latest Update: November 2024