Madagascar

Employment income

All salary income received in Madagascar by a resident person, even if such income is paid by an employer established outside of Madagascar, is subject to IRSA.

Employment income includes salary, wages, leave pay, overtime pay, allowances, bonuses, commissions, personal cost reimbursements, and all benefits in kind.

Benefits in kind are residential accommodation, use of cars, meals, telephone, and any personal cost of the employee that is expensed by the employer. Benefits in kind are valued as follows; however, the value of benefits in kind cannot exceed 20% of the employee cash salary:

• Vehicles: 15% of monthly insurance, maintenance and repairs, and gas oil paid or accounted by the company in relation to the vehicle.
• Housing: 50% of the actual rent or of the rental value. However, the deductible amount cannot exceed 25% of the gross cash remuneration.
• Phone: 15% of the total amount invoiced monthly.
• Other benefits: 100% of the actual cost of such other benefit in kind paid by the company.

Business income

Income derived from business performed in Madagascar is subject to IR or to IS.

Individual foreign services suppliers are subject to a withholding tax (WHT) of 10% of their income realised in Madagascar.

Capital gains

Capital gains coming from a series of purchases and re-sales of real estate property are subject to capital gains tax at a rate of 20%.

Dividend income

Dividends are not taxable if the individual beneficiary is resident in Madagascar. For non-residents, WHT of 10% is applicable.