Africa

Madagascar

Corporate rate
20%
Top personal rate
20%
VAT / GST rate
20%
One-sentence summary Madagascar's corporate tax position: 20. Personal income tax: 20. VAT/consumption tax: 20.

Corporate Tax Rate

Madagascar's headline corporate income tax (CIT) rate is 20.

Personal Tax Rate

The headline personal income tax (PIT) rate is 20.

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 20. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

An individual is resident if they have their home or dwelling in Madagascar, confirmed via two independent sources - notably including those who travel abroad but remain on a Madagascar employer's payroll, confirmed via a specialist South African tax source. A company is resident if incorporated or principally managed in Madagascar (a place-of-management test in addition to incorporation), confirmed via the same source. Resident individuals and companies are taxed on worldwide income; non-residents are taxed only on Madagascar-source income.

CFC (Controlled Foreign Company) Rules: Not identified

No Controlled Foreign Company regime was identified in available sources this session. Notably, foreign income earned by corporate bodies situated in Madagascar is treated as normal business income subject to CIT unless a tax treaty establishes otherwise, confirmed directly via PwC - a worldwide-taxation baseline rather than a territorial one, though this does not by itself confirm or rule out a separate CFC-style attribution mechanism.

Thin Capitalization

No statutory thin capitalization ratio was identified in available sources this session.

Foreign Bank Account / Foreign Financial Asset Reporting

No domestic FBAR/Form 8938-equivalent requiring Madagascar residents to self-report their own foreign accounts was identified. Institutional-level CRS/FATCA participation status was not independently confirmed this session. Separately and independently of local law, US citizens and Green Card holders with Madagascar accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of local requirements.

Treaty Network

Madagascar has signed four tax treaties, confirmed directly via PwC, with named partners Canada, France, Mauritius, and Morocco, confirmed via an EY-sourced tax guide compilation that specifically tabulates treaty withholding rates for these four jurisdictions.

Sources: PwC Worldwide Tax Summaries - Madagascar, Corporate Income Tax, PwC Worldwide Tax Summaries - Madagascar, Withholding Taxes (four treaties confirmed), South African Tax Guide - Madagascar Taxes Overview (residency detail), Lloyds Bank Trade - Madagascar Tax Rates, EY-sourced tax guide via Bats Consulting - Madagascar (named treaty partners: Canada, France, Mauritius, Morocco). Rates last reviewed by PwC: 18 November 2025. Page last verified: August 08, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.