Madagascar

Overview

Last reviewed - 04 February 2020

Madagascar is an island nation along the southeast coast of Africa. Formerly an independent kingdom, it became a French colony in 1896 but regained independence in 1960. Madagascar is a constitutional democracy divided into 22 regions, with Antananarivo as the capital. Malagasy and French are the official languages of Madagascar, and the currency is the Malagasy ariary (MGA).

After discarding socialist economic policies in the mid-1990s, Madagascar has followed a World Bank and International Monetary Fund (IMF) led policy of privatisation and liberalisation. This strategy placed the country on a slow and steady growth path. Agriculture, including fishing and forestry, is a mainstay of the economy, accounting for more than one-fourth of gross domestic product (GDP) and employing 80% of the population.

PwC Madagascar provides audit, tax and legal, and advisory supports to clients. The tax practice has extensive knowledge and experience in dealing with issues related to mining activities, banking, and the exploration for oil and gas. The PwC team also has access to a broad range of other professionals across the PwC global network of firms.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%) 20
Corporate income tax (CIT) due dates
CIT return due date For companies whose financial year ends at 31 December: 15 May;
For companies whose financial year ends at 30 June: 15 November;
For all other financial year-ends: within four months.
CIT final payment due date For companies whose financial year ends at 31 December: balance is due before 15 May;
For companies whose financial year ends at 30 June: balance is due before 15 November;
For all othe financial year-ends: balance is due within four months.
CIT estimated payment due dates Tax is payable bi-monthly in provisional instalments.
Personal income tax (PIT) rates
Headline PIT rate (%) 20
Personal income tax (PIT) due dates
PIT return due date 31 March for small individual busninesses, and within 15 days of the fourth month of the end of the financial year for other businesses.
PIT final payment due date 31 March for small individual busninesses, and within 15 days of the fourth month of the end of the financial year for other businesses.
PIT estimated payment due dates Payment of IRSA must be done before the 15th day of each month.
Value-added tax (VAT) rates
Standard VAT rate (%) 20
Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy) Resident: 0 / 20 / 0;
Non-resident: 0 / 20 / 10
Capital gains tax (CGT) rates
Corporate capital gains tax rate (%) 20
Individual capital gains tax rate (%) 20
Net wealth/worth tax rates
Headline net wealth/worth tax rate (%) NA
Inheritance and gift tax rates
Inheritance tax rate (%) NA
Gift tax rate (%) NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.