Madagascar

Reform of the General Tax Code introduced in the 2023 Financial Law

The reform consists of the extraction of procedural tax provisions from the General Tax Code. From January 2023, the General Tax Code is split into:

• Tax Code (Code Des Impôts): This code will include the rules of tax assessment and liquidation as well as tax conventions and the special tax regime for free zones and enterprises.
• Tax Procedures Code (Code des Procédures Fiscales): This code will contain the tax provisions relating mainly to actions carried out between the tax administration and taxpayers, such as registration, declaration and payment of tax, collection, tax audit, tax litigation, or any other procedures governed by the Tax Law.

New tax from 2025: Mobile transaction tax

From 2025, any operation related to the use of electronic money is subject to mobile transaction tax at a rate of 5% of the amount of fees collected by the Electronic Money Institution following a transaction via mobile money.

Value-added tax (VAT) credit deferral limited to three years

From 2025, VAT credit can be carried forward over three years, instead of indefinitely previously.

Tax audit process

From 2025, some modifications have been made in respect of the tax audit process, mainly concerning response timing and the request for deferral of payment in the event of a contentious claim.