Corporate Income Tax in Madagascar

Understanding Madagascar’s corporate tax framework is essential for both local entrepreneurs and international investors. In this episode, we break down the corporate income tax (CIT) rules, the synthetic tax regime (IS), and how compliance works in practice—so you can plan, operate, and grow with clarity.

What You’ll Learn in This Episode:

💼 General Corporate Income Tax (CIT)

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• Standard Rate: 20% of net profits for companies with turnover ≥ 200M MGA.
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• Scope: Resident companies taxed on worldwide income; non-residents taxed on Madagascar-sourced income only.
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• Capital Gains: Taxed at the standard 20% CIT rate.
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• Filing Deadlines: Tax returns due by the 15th day of the fourth month after year-end (e.g., May 15 for calendar-year companies).
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📊 Synthetic Tax Regime (Impôt Synthétique – IS)

• Who It Applies To: Mandatory for companies with turnover < 200M MGA (with option to use standard CIT).
• Rate: 5% of annual turnover.
• Reduction: A 2% reduction is available for purchases of goods/equipment, though liability cannot drop below 3% of turnover.

Why This Matters:

Whether you’re running a small startup or a large enterprise, knowing which regime applies—and how to file correctly—helps you avoid costly mistakes, benefit from available reductions, and stay on the right side of Madagascar’s tax authorities.