Madagascar Corporate Income Tax

Corporate income tax (IR) rates and base

Companies are taxed under the Impôt sur les Revenus (IR). Large taxpayers (turnover ≥ MGA 400m) fall under the real regime at 20% of profit with a minimum tax; smaller taxpayers use a synthetic turnover-based regime.

• Standard corporate income tax (IR) rate — real regime — 20% of taxable profit % (Code Général des Impôts (Madagascar) — IR (https://taxsummaries.pwc.com/madagascar/corporate/taxes-on-corporate-income))
• Turnover threshold for the real regime — Annual turnover exceeding MGA 400,000,000 MGA (Code Général des Impôts (Madagascar) — IR (https://taxsummaries.pwc.com/madagascar/corporate/taxes-on-corporate-income))
• Synthetic regime (turnover < MGA 400m) — Impôt Synthétique (IS) — 5% of turnover (commonly applied to 70% of turnover); minimum from MGA 16,000 to MGA 150,000 by activity ((approx — confirm)) (Code Général des Impôts (Madagascar) — Impôt Synthétique (https://taxsummaries.pwc.com/madagascar/corporate/taxes-on-corporate-income))
• Minimum CIT under the real regime — general activities — 1% of turnover plus MGA 1,000,000 (Code Général des Impôts (Madagascar) — IR (https://taxsummaries.pwc.com/madagascar/corporate/taxes-on-corporate-income))
• Minimum CIT — agriculture, artisan, transport, industrial, hotel, mining — 1% of turnover plus MGA 500,000 (Code Général des Impôts (Madagascar) — IR (https://taxsummaries.pwc.com/madagascar/corporate/taxes-on-corporate-income))
• Reduced rate — cooperative societies — 10% on interest and rebates distributed to members % ((approx — confirm)) (Code Général des Impôts (Madagascar) — IR (https://taxsummaries.pwc.com/madagascar/corporate/taxes-on-corporate-income))
• Tax base — Net accounting profit adjusted for tax purposes (Madagascar-source income); territorial system ((approx — confirm)) (Code Général des Impôts (Madagascar) — IR (https://taxsummaries.pwc.com/madagascar/corporate/income-determination))
• Withholding tax on dividends to non-residents (non-treaty) — 10% % (Code Général des Impôts (Madagascar) — IRCM (https://taxsummaries.pwc.com/madagascar/corporate/withholding-taxes))
• Withholding tax on loan interest to non-residents (non-treaty) — 20% % (Code Général des Impôts (Madagascar) — IRCM (https://taxsummaries.pwc.com/madagascar/corporate/withholding-taxes))
• Withholding tax on royalties, management and service fees to non-residents (non-treaty) — 10% % (Code Général des Impôts (Madagascar) — IR/IRCM (https://taxsummaries.pwc.com/madagascar/corporate/withholding-taxes))
• CIT return filing deadline (31 Dec year-end) — 15 May of the following year (Code Général des Impôts (Madagascar) (https://taxsummaries.pwc.com/madagascar/corporate/tax-administration))
• CIT return filing deadline (30 June year-end) — 15 November (Code Général des Impôts (Madagascar) (https://taxsummaries.pwc.com/madagascar/corporate/tax-administration))
• CIT payment — Provisional installments paid bimonthly; final balance due with the return ((approx — confirm)) (Code Général des Impôts (Madagascar) (https://taxsummaries.pwc.com/madagascar/corporate/tax-administration))
• Withholding tax remittance deadline — By the 15th of the month following payment (Code Général des Impôts (Madagascar) (https://taxsummaries.pwc.com/madagascar/corporate/tax-administration))