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 10% on interest on shares as well as distributed income or rebates paid by cooperative societies to their members. However, interest on loans granted by members or on borrowings by members from the cooperative society 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 to 25 (max)||15||10 to 15 (max)|
|Mauritius||10 (max)||10||5 (max)|