Individual - Significant developments

Last reviewed - 08 July 2021

Change of amount of salary income tax (IRSA) rate

The IRSA scale has been modified as follows from 1 January 2021:

  • Income range up to 350,000 Malagasy ariary (MGA): 0%
  • Income range from MGA 350,001 to MGA 400,000: 5%
  • Income range from MGA 400,001 to MGA 500,000: 10%
  • Income range from MGA 500,001 to MGA 600,000: 15%
  • Income range above MGA 600,000: 20%

In all cases, regardless of the income, the minimum IRSA payable is MGA 2,000.

Taxation of authors and artists

Authors and artists are subject to IRSA when their income does not reach the threshold for individual business income tax (IR) liability.

Value-added tax (VAT)

VAT exemption for operations on certain products:

  • Sale of maize (local sale) and flour (locally manufactured).
  • Sale of edible oil manufactured by local industries.
  • Import and sale of wheat, iodine, and fluorine.
  • Import and sale of medical materials, equipment, and consumables.

VAT rate of 5% for locally produced butane gas and pasta products, instead of 20%.