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Madagascar: New tax tables 2021

The Madagascar Revenue Authority has released the new tax tables for the 2021 tax year.

The minimum tax of MGA 2 000.00 still applies.

 Furthermore, Finance Law 2021 incorporates a change to Article 01.03.02. which states that income received by retired employees that are in excess of a year’s salary will be taxable.

Where a retired employee is receiving income from an employer and such income exceeds the salary for the 12 months prior to retirement, the entirety of such income will be taxable.

Salary is basic salary plus cash allowances, excluding benefits-in-kind and company contributions.

The effective date is 01 January 2021.

Employers wishing to make amendments to their payrolls may perform a reconciliation between what was withheld and what should have been withheld for the period January-September.

A request will then have to be made to the DGI (revenue authority) for the variance to be claimed against future tax withholdings (There is no annual reconciliation in Madagascar).

Note: For assistance with these Madagascar payroll changes, please contact your Sage Business Partner consultant directly.

Alternatively, leave your details here and we will connect you to one of our Business Partners with experience in Africa tax countries.