🇲🇬 Madagascar Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 25.0% Worldwide system

Corporate tax 20.0%

TVA 20.0% standard rate

Tax residency — 4 tax treaties

Madagascar tax profile

Data year: 2026

Tax system: Worldwide Madagascar taxes residents on worldwide income. Employment income is subject to IRSA (withholding on salaries); business income is subject to IR (real regime above MGA 400 million turnover or synthetic tax below that threshold). Standard corporate income tax is 20% on profits for companies above the turnover threshold. VAT (TVA) is generally 20% (10% on butane gas imports/sales; 0% on exports).
Top PIT rate: 25.0%
Corporate tax rate: 20.0%
TVA: 20.0%
Capital gains tax: 20.0% Headline capital gains tax is 20% on specified transactions (including repeated real-estate trading and certain property-related gains). Other gains may be included in ordinary corporate or business income at standard rates.
Social security (employee): 2.0%
Social security (employer): 19.0%
Social security cap (annual): MGA 28,800,000
Dividend withholding: 10.0%
Interest withholding: 20.0%
Royalty withholding: 10.0%
Treaty count: 4

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
MGA 0	and above	20.0%	$0 +

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
MGA 0	MGA 4,200,000	0.0%	$0 – $933
MGA 4,200,001	MGA 4,800,000	5.0%	$933 – $1,067
MGA 4,800,001	MGA 6,000,000	10.0%	$1,067 – $1,333
MGA 6,000,001	MGA 7,200,000	15.0%	$1,333 – $1,600
MGA 7,200,001	MGA 48,000,000	20.0%	$1,600 – $10,667
MGA 48,000,001	and above	25.0%	$10,667 +

Special regimes
Name	Type	Rate/amount	Duration	Status
Free zone enterprises Corporate income tax holidays and reduced rates for qualifying companies operati...	Free zone	10.0%	10yr	Active

Residency rules: Individuals are resident if they have a dwelling available in Madagascar (as owner, usufructuary or tenant) or if their principal place of stay is in Madagascar, even without owning a home. There is no standalone day-count domicile test in the sources reviewed. Residents are liable on worldwide salary income (IRSA) and Malagasy-source business income; non-residents are generally taxed on Madagascar-source income.
Exit tax: No
CFC rules: No

Direction Générale des Impôts (accessed Oct 9, 2026) National tax authority portal; regulatory texts and e-filing (e-Hetra)
Sage Madagascar Tax Summary 2026 (accessed Oct 9, 2026) IRSA monthly scale including 25% band from 2026; residency tests; CNAPS/OSTIE/FMFP; PAYE deadlines
PwC Worldwide Tax Summaries — Madagascar (accessed Oct 9, 2026) CIT, VAT, WHT, social contributions, capital gains, residency, treaties, free zones (reviewed Nov 2025)

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%