Madagascar

Social security contributions

Employers contribute to the National Pensions Fund at 13% of cash remuneration, up to a monthly maximum amount of 13% of eight times the legal minimum salary, per employee. In addition, employers are required to contribute 5% of employee remuneration to the statutory health organisation, up to a monthly maximum of 5% of eight times the legal minimum salary.

Employees contribute to the National Pensions Fund at 1%, subject to a monthly maximum amount of 1% of eight times the legal minimum salary. In addition, employees are also required to contribute 1% of monthly remuneration to the statutory health organisation, up to a monthly maximum of 1% of eight times the legal minimum salary.

Since 1 January 2019, employers are required to contribute to the Fonds National sur la Formation Professionnelle (FNFP). The contribution rate is 1% of employee taxable remuneration. The contribution is capped to an amount calculated on eight times the legal minimum salary.

Consumption taxes

Value-added tax (VAT)

The VAT rate is 20%. However, the VAT rate is 5% for locally produced butane gas and 0% on exports. See the Other taxes section in the Corporate tax summary for more information.

Net wealth/worth taxes

There are no net wealth/worth taxes in Madagascar.

Inheritance, estate, and gift taxes

There are no inheritance, estate, or gift taxes in Madagascar.

Registration fees

Registration fees are applicable to transfers of title ownership (e.g. sales, donations) of movable and immovable assets, to transfers of interests, to share capital increases, and to lease agreements.

Registration fee rates are 0.5% to 5%, depending on the nature of the transaction.

Registration fees are MGA 40,000 per donor in case of inter vivos donations in direct descending line.

Registration fees on declaration of inheritance and on deed of partition from an estate are suspended.

Real estate ownership tax

Real estate ownership tax is imposed annually at the rate of 5% on the rental value of the property. Land ownership is also taxable at a rate depending on the nature of the land.

Insurance tax on vehicles

Vehicles classified as tourism vehicles used by an individual for the purpose of one's business are subject to payment of annual tax on insurance, which is 10% of the annual insurance fees. This tax is not applicable for employees or individuals who do not carry on an individual business.