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.
|Dividends||Loan interest||Royalties, management fees, services fees|
|France||15 (max)||15||15 (max)|
|Mauritius||10 (max)||10||5 (max)|