Madagascar

Corporate - Withholding taxes

Last reviewed - 04 February 2020

WHTs are levied as follows:

  • Purchases of goods and services from non-registered suppliers by a registered supplier are subject to WHT at a rate of 5% payable to the tax authorities within 15 days following the month of payment of the supplier.
  • Impôt sur les revenus des capitaux mobiliers (IRCM): WHT on interest of 20% is applicable on financial loan interest. However, interest paid to banks, financial institutions, and foreign financial organisations is exempt.
  • WHT of 20% is applicable on remuneration of a member of a board of directors or a single director.
  • Income tax for non-resident entity: Management fees, royalties, technical and assistance fees, licence fees, equipment rental fees, and any income realised by foreign suppliers is subject to WHT at a rate of 10%.
  • WHT of 10% is applicable on dividends distributed to foreign shareholders.

Madagascar has signed four tax treaties.

Recipient WHT (%)
Dividends Loan interest Royalties, management fees, services fees
Non-treaty 10 20 10
Treaty:      
Canada 15 (max) 10 10
France 15 (max) 15 15 (max)
Mauritius 10 (max) 10 5 (max)
Morocco 10 (max) 10 10