Madagascar

Companies are considered resident in Madagascar if they are registered in Madagascar or have a legal existence in Madagascar.

Permanent establishment (PE)

PE refers to a fixed place of business through which a company carries out the whole or part of its activities, including:

• Management offices.
• Branches.
• Offices.
• Factories.
• Workshops.
• Mining sites, oil or gas wells, quarries, or any other places for the extraction of natural resources.
• Building sites, construction or installation projects, or supervising activities lasting for more than 120 days in relation to those projects.
• Provision of services by a company, including advisory services, via employees or other staff hired by the company to this end, only if such activities are carried out in Madagascar for a total period of 90 days for a 12-month period either starting or ending during the fiscal year involved, for the given or a related project.

PE does not include:

• The use of facilities for the storage or display of goods or merchandise belonging to the company.
• Exploiting a stock of goods or merchandise belonging to the company for the sole purpose of either storage or display or of being processed by another company.
• Exploiting a fixed place of business for the sole purpose of:
  • either purchasing merchandise or collecting information for the company
  • carrying out any other activity of preparatory or auxiliary character for the company, or
  • pursuing any combination of the activities mentioned above, conditional on the overall activity of the fixed place of business, as resulting from this combination, remaining of preparatory or auxiliary character.