A non-resident entity having a permanent establishment (‘PE’) in Madagascar is subject to tax on income earned by such PE in Madagascar. The tax is levied at the same rate as for resident companies i.e. at 20%. There is no branch tax on the (deemed) remittance of the after-tax income to the foreign head office.
Madagascar sourced income earned by non-residents not having a PE in Madagascar, is subject to withholding tax in the country, which is the final tax on such income (See sec. 8.2.2. below).