Madagascar

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)

IRSA scale:

• 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 salary income tax payable is MGA 3,000.

Individual business income tax (IR)

An individual business having an annual turnover of less than MGA 400 million is subject to IR at a rate of 5% (with a possible reduction of 70%) of the annual turnover, called 'synthetic tax'. However, the minimum tax is MGA 16,000 or MGA 150,000, depending on the activity.

Basic producers, such as farmers, foresters, and intermediaries operating with the said producers in the sales chain, are subject to synthetic tax on their income from their activities regardless of the MGA 400 million threshold.

Individual members of cooperative societies are personally subject to IR (income tax) or to synthetic tax.

An individual business having an annual turnover exceeding MGA 400 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 tax summary for more information.