Individuals are subject to business income tax, called Impôt sur les Revenus (IR), or to salary income tax, called Impôt sur les Revenus Salariaux et Assimilés (IRSA), depending on the nature of the revenue earned.
For IRSA purposes, an individual resident in Madagascar, either Malagasy or of a foreign nationality, is liable on worldwide income.
For IR purposes, an individual who is not resident in Madagascar is liable only on income from Malagasy sources.
Salary income tax (IRSA)
For taxable salary income up to MGA 350,000, tax due is MGA 2,000. For taxable salary income more than MGA 350,000, the IRSA is 20%, with a minimum tax of MGA 2,000.
Individual business income tax (IR)
An individual business having an annual turnover of less than MGA 200 million is subject to IR at a rate of 5% (with a possible reduction of 70%) of the annual turnover. However, the minimum tax is MGA 16,000.
An individual business having an annual turnover exceeding MGA 200 million is taxable in the same manner as a corporation (income tax on the profit). See the Taxes on corporate income section in the Corporate summary for more information.