In this article, you’ll find a precise summary of individual income tax obligations in Madagascar for 2025. The information below covers the core framework, current income tax brackets, and practical insights to help you better understand Madagascar’s tax landscape.
Individual Income Tax Framework in Madagascar
Madagascar uses a progressive tax system for individual income taxation. This means that the rate you pay increases as your annual income rises, with different portions of your income taxed at different rates. For 2025, assessments are based solely on total taxable income earned by an individual, calculated in Malagasy Ariary (MGA).
2025 Income Tax Brackets in Madagascar
The following table outlines the current income tax brackets and rates in Madagascar. All figures are in Malagasy Ariary (MGA).
| Income Range (MGA) | Rate (%) |
|---|---|
| 0 – 350,000 | 0% |
| 350,001 – 400,000 | 5% |
| 400,001 – 500,000 | 10% |
| 500,001 – 600,000 | 15% |
| 600,001 and above | 20% |
For global context, at the current exchange rate of 1 USD ≈ 4,200 MGA, the 0% tax bracket covers annual incomes up to approximately $83 (about 350,000 MGA ÷ 4,200). All figures above can be converted using this exchange rate for comparative research.
Assessment Basis and Tax Collection
Income tax in Madagascar is assessed on the basis of an individual’s total taxable income, regardless of the source. The most recent data does not disclose surtaxes or any mandatory holding periods relating to income tax. If you do not see a particular rate or component (such as a national surtax), this is due to the absence of such data in official communications from Malagasy tax authorities, or because a specific feature simply does not apply for the 2025 tax year.
Key Notes for 2025
- No income tax is due for earnings up to 350,000 MGA (about $83) annually.
- The highest marginal rate for individuals is 20% on annual income exceeding 600,000 MGA (about $143).
- Tax is calculated separately for each income bracket, ensuring progressive taxation is applied only to the portion that falls within each bracket.
Pro Tips: Handling Individual Income Tax in Madagascar (2025)
- Track All Sources of Income: Madagascar’s income tax applies to aggregate income, so meticulous income tracking is essential for accurate annual reporting.
- Cross-Check Bracket Cutoffs: Ensure that your income calculations correctly align with tax brackets—rates only apply to the portion within each bracket, not total income.
- Consider Currency Fluctuations: If you earn foreign income, periodically update exchange rate calculations to avoid errors in your MGA declarations.
- Stay Informed about Regulation Changes: Monitor the Malagasy tax authority’s official website for any updates or policy amendments.
Summary
Madagascar’s individual income tax system in 2025 remains a straightforward progressive model, with rates ranging from 0% to 20% depending on income. There are no published surtaxes, and information is not available regarding holding periods or extraordinary levies. Key figures and tax brackets are unchanged from prior policy years, keeping compliance predictable for international professionals considering personal or business activities in Madagascar.
Careful recordkeeping, awareness of currency dynamics, and proactive engagement with official sources, such as the Malagasy tax authorities, are vital for efficient tax management. With these basics in mind, you can confidently navigate Malagasy income tax compliance for 2025.