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Madagascar: Budget Promulgated with New Tax Rates

(Jan. 13, 2010) On December 31, 2009, Madagascar's 2010 budget was promulgated as Ordinance No. 2009-14. It includes information on direct and indirect taxation rates. The rate for corporate income, personal income, income from movable capital, and capital gains from immovable property is 23%, a reduction from the 24% rate in effect in 2009. Locally produced alcohol and related products had been able to benefit from up to a 70% reduction of the taxable base for the applicable excise tax; that benefit is no longer available.

The Ordinance also provides for customs duties and allows an exemption from customs payments on imports of spare parts and petroleum products; in addition, the rate of customs tax on equipment used for manufacturing has been reduced from 10% to 5%.

Madagascar also has a value-added tax. The Ordinance specifies that transactions between VAT-registered taxpayers must be in the form of checks, wire transfers, or bank cards. (Albert Atangana, Madagascar: Budget for 2010 – Details, IBFD TAX NEWS SERVICE, Jan. 11, 2010, available by subscription from