This article outlines the latest corporate tax rules and rates for Madagascar in 2025, focusing on how business profits are assessed and which surcharges may apply under the current regime.
Corporate Tax Regime in Madagascar (2025)
Madagascar implements a progressive corporate tax system. Tax liability is assessed on corporate profits, with rates varying according to income brackets. The currency used in tax calculations is the Malagasy Ariary (MGA).
Corporate Tax Rates and Brackets
Corporate income tax in Madagascar follows a tiered approach for the 2025 tax year. The applicable rates and brackets are summarized in the table below:
| Taxable Income Bracket (MGA) | Tax Rate (%) |
|---|---|
| 0 – 400,000,000 MGA | 5% |
| Above 400,000,000 MGA | 20% |
Current data for additional flat-rate or national average effective corporate tax rates has not been publicly disclosed by Madagascar’s authorities. The above rates are the official tiered rates for standard taxable profits.
Corporate Tax Assessment Basis
All assessments are based strictly on corporate profits, consistent with international standards. There is no information indicating the use of alternative bases (such as gross receipts or presumptive taxation) for typical corporate taxpayers, unless otherwise specified under minimum tax schemes.
Surtaxes and Special Minimum Tax Provisions
Several surtaxes and special minimum tax requirements may affect businesses, depending on their revenue sources and activity profiles. The main provisions for 2025 are outlined in the following table:
| Surtax Rate (%) | Condition or Trigger |
|---|---|
| 8% | Applies to revenue from public market contracts |
| 10% | Reduced CIT rate for cooperative societies on interest on shares and rebates distributed to members |
| 1% | Minimum CIT for real tax regime: 1% of turnover (plus a fixed amount for certain activities) |
| 0.7% | Minimum CIT for real tax regime: 7/1,000 of turnover plus MGA 1,000,000 for other activities |
Companies falling under these categories should calculate their minimum tax obligation in addition to the standard corporate tax calculation. Notably, turnover-based minimums ensure a baseline contribution regardless of declared profits. When more than one minimum may apply, professional advice and consultation of official guidance is recommended.
No Official Holding Period Requirements
There are currently no disclosed minimum or maximum holding periods for qualifying income or tax treatment. All corporate profits, regardless of realization timeframes, are subject to the rates and regimes mentioned above.
Practical Insights for Corporate Tax Compliance
Madagascar’s progressive system means tax liability can change substantially with rising turnover or profits, and the presence of multiple minimum tax regimes requires a close look at revenue composition each year.
Pro Tips for Navigating Madagascar Corporate Taxation
- Review your annual turnover and revenue streams at the start of each fiscal year to determine if special minimum taxes or surtaxes apply.
- Keep detailed financial records by revenue type if you engage in public contracts or cooperative society activities, as these attract different surcharges.
- Where possible, simulate multiple scenarios using both regular corporate tax rates and potential minimums—whichever results in a higher liability typically prevails.
- If your operations involve sectors commonly subject to minimum turnover taxes, set aside reserves accordingly to avoid surprises at year-end.
- Consult official government guidance at impots.mg regularly for any legislative updates that may affect rates or calculation methods.
In summary, Madagascar applies a tiered corporate tax rate system for companies in 2025, with key brackets at 5% and 20% depending on taxable profits. Several surtaxes and minimum tax mechanisms exist, which may impact businesses based on their activity or revenue characteristics. Staying informed of your business’s specific category and annual turnover is essential for effective planning and compliance.