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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty NA
Payroll Tax / Salary Income Tax 20% of taxable salary of employees Salary income taxes are levied at a rate of 20% on the total taxable remuneration of employees, including salaries, allowances and any benefits in kind. Employers are required to withhold and pay the salary income tax.
Social Security Employer Contribution 13% & 5% Employers are required to contribute to national social security fund at 13% and to medical insurance organization at 5% of gross monthly remuneration of employees.
Social Security Employee Contribution 1% Employees are required to contribute 1% each of their gross salaries towards social security fund and to medical insurance organization, which is withheld by the employer.
Stamp Duty NA
Transfer Tax NA
Property Tax (Real property) 5% - 10% Real estate ownership tax is levied annually at the rate of 5% to 10% on the rental value of the property. Land ownership is also taxable depending on the nature of the land.
Customs Duty 20% - 180% Custom duty and import tax is payable on the goods imported in Madagascar.
Excise Duty 5% to 325% depending on the type, quantity of product Custom duty and import tax is payable on the goods imported in Madagascar. Excise duty applies on a range of goods and services such as tobacco, alcohol, lighters, and mobile phones. Excise duty rates range from 5% to 325% or depends on the nature and quantity of the product.
Registeration fees / duty 0.5% - 5% depending on the nature of transaction Registration fees is payable on transfer of title ownership of movable and immovable assets, transfers of interests, share capital increase and lease agreements. The highest rate of 5% is mainly applicable on transfer of assets and transfer of business.