Madagascar

Corporate Income Tax (“CIT”):

• A corporate entity registered in Madagascar and having an annual turnover exceeding MGA 200 million is subject to CIT at a rate of 20% [1][4].
• A corporate entity having an annual turnover of less than MGA 200 million is subject to CIT at a rate of 5% of 70% of turnover, with a minimum tax of MGA 16,000 to MGA 150,000 depending on the activities. However, the tax due cannot be less than 3% of the turnover. A tax reduction of 2% of the amount of purchases of goods and services and equipment subject to regular invoices is applicable.

Other taxes:

• Value-added tax:The VAT rate is 20%, and the VAT rate on exports is 0%. VAT input is recoverable under certain conditions. The VAT rate of 5% is applicable for locally produced butane gas. VAT is applicable to all transactions realized in Madagascar by a VAT.
• Salary income taxes: Salary income taxes are levied at a rate of 20% on the total taxable remuneration of employees, including salaries, allowances, and any benefits in kind. Employers are required to withhold and pay the salary income tax.
• National Social Security fund: Employers are required to contribute to the national social security fund at 13% and to the medical insurance organization at 5% of the gross monthly remuneration of employees. Employees are required to contribute 1% each of their gross salaries towards the social security fund and to the medical insurance organization, which is withheld by the employer.