Individuals are subject to business income tax, called Impôt sur les Revenus (IR), or to salary income tax, called Impôt sur les Revenus Salariaux et Assimilés (IRSA), depending on the nature of the revenue earned.
For IRSA purposes, an individual resident in Madagascar, either Malagasy or of a foreign nationality, is liable on worldwide income.
For IR purposes, an individual who is not resident in Madagascar is liable only on income from Malagasy sources.
Salary income tax (IRSA)
- Income range up to MGA 350,000: 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 salary income tax payable is MGA 3,000.
Individual business income tax (IR)
An individual business having an annual turnover of less than MGA 200 million is subject to IR at a rate of 5% (with a possible reduction of 70%) of the annual turnover. However, the minimum tax is MGA 16,000 or MGA 150,000, depending of the activity.
An individual business having an annual turnover exceeding MGA 200 million is taxable in the same manner as a corporation (income tax on the profit). See the Taxes on corporate income section in the Corporate summary for more information.