Corporate - Significant developments

Last reviewed - 03 August 2020

Change of taxation of revenues sourced from public market

Revenues sourced from public market must be registered and managed separately from revenues sources from other activities. Revenues sources from public market are subject to Tax on public markets at at rate of 8%.

Change of taxation of revenues of educational and health professionals

Educational and health professionals duly agreed are subject to CIT at a rate of 10% with a minimum tax of MGA 100.000 plus 1/1000 of annual turnover.

Collection of advance payment on CIT on import and export operations by customs services

Advance payment on CIT at a rate of 2% of the value of imported or exported goods is collected by the customs services.

Withholding taxes (WHTs)

Dividends paid to foreign shareholders are subject to WHT of 10%.


Taxpayers having annual revenue of more than MGA 200 millions must file annual financial statements online.

New tools have been put in place on the web site E-HETRA for payment by mobile phone or online payment.

Transfer pricing (financial act rectification)

Electronic file of Transfer Pricing documentation must be filed at the same time as the annual return.

Other taxes (financial act rectified 2020)


Taxpayer having an annual revenue exceeding 400 000 000 ariary must be registered for VAT.  

Oil and Gaz upstream entities are exempt from VAT on importation of equipment, vehicles as per the list duly approved on an annual basis by the authorities in charge of mining activities.

VAT refund is extended to VAT paid by upstream Oil and Gas entities on their importation of services under certain conditions.

Registration fees

On a tax point of view, a company is deemed to be dissolved and new entity is set up in case of sale of 100% of the share capital to one or more new shareholders.  This provision is not applicable if the shares have been held by the sellers for a period of 3 years prior to the transfer.