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