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8.2.2. Withholding Taxes

The withholding tax (‘WHT’) rates levied on income received / derived by the non-residents from sources within Madagascar are as below:

Dividend

There is no WHT on dividends paid by Madagascar resident entities to non-residents.

Interest

Tax is withheld at 20% on interest paid by Madagascar resident entities to non-residents. Interest paid to banks, financial institutions and foreign financial organizations is not subject to WHT.

Royalty Copyright

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Royalty Patent

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Royalty Trademark

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Service Management

Tax is withheld at the rate of 10% on service management fees paid to non-residents.

Service Technical

Tax is withheld at the rate of 10% on service technical fees paid to non-residents.

Others

Tax is withheld at the rate of 10% on payments made for rental of equipment to non-residents.

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains
20%
Dividends
0%
Interest
20%
Royalty Copyright
10%
Royalty Patent
10%
Royalty Trademark
10%
Sales
0%
Service Management
10%
Service Technical
10%

* Rates are current as of 29 January 2023