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MG Tax 2024

iCalculator™ MG: Madagascar Tax Calculators

Welcome to iCalculator™ MG, your comprehensive suite of free tax calculators for Madagascar. iCalculator™ has provided free tax calculators for Madagascar since 2019. Since those early days we have extended our resources for Madagascar to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Madagascar Tax Calculator and salary calculators within our Madagascar tax section are based on the latest tax rates published by the Tax Administration in Madagascar. In this dedicated Tax Portal for Madagascar you can access:

Madagascar Tax Calculator 2024/25

The Madagascar Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Madagascar. This includes calculations for

  1. Employees in Madagascar to calculate their annual salary after tax.
  2. Employers to calculate their cost of employment for their employees in Madagascar.
Madagascar Tax Calculator 2024
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Advanced Madagascar Salary Calculator 2024
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Discover Madagascar

Madagascar, the fourth largest island in the world, is located in the Indian Ocean off the southeastern coast of Africa. It is separated from the African continent by the Mozambique Channel, with Mozambique being its closest mainland neighbor. Madagascar's geographic isolation has contributed to its unique biodiversity, with many species of plants and animals found nowhere else on Earth. This natural wealth has shaped not only the island's environment but also its culture and way of life, which is a vibrant blend of African, Asian, and European influences.

The Malagasy economy is largely based on agriculture, which employs the majority of the population. Key agricultural products include rice, vanilla, coffee, and cloves, with vanilla being one of the island's most famous exports. Madagascar is the world's largest producer and exporter of vanilla, a sector that significantly contributes to its economy. Beyond agriculture, the fishing and forestry sectors are also crucial, exploiting the island's extensive natural resources.

Mining has grown in importance for Madagascar's economy, with significant deposits of gemstones, nickel, cobalt, ilmenite, and other minerals attracting international investment. The textile industry is another important economic sector, benefiting from trade agreements that provide preferential access to European and American markets. However, the country faces challenges such as political instability, infrastructure deficiencies, and environmental degradation, which have hindered more robust economic growth.

Tourism is a growing sector, with Madagascar's unique wildlife, diverse ecosystems, and cultural heritage drawing visitors from around the world. Efforts to develop sustainable tourism practices aim to conserve the island's unique biodiversity while providing economic opportunities for local communities. Madagascar's rich cultural landscape is reflected in its music, dance, cuisine, and traditional ceremonies, which remain integral to Malagasy identity and social life.

Despite its natural and cultural riches, Madagascar remains one of the world's poorest countries, with a significant portion of its population living below the poverty line. Economic development efforts focus on enhancing agricultural productivity, expanding access to education and healthcare, and promoting industries that can leverage Madagascar's unique assets for sustainable growth.

For more information on neighboring countries and their economic profiles, visit Mozambique.

Tax overview of Madagascar

The taxation system in Madagascar is structured to support the country's development goals, providing funding for public services and infrastructure while encouraging business growth and investment. Madagascar's tax framework includes a variety of taxes, such as income tax, corporate tax, value-added tax (VAT), customs duties, and other levies on goods and services. The tax system is designed to be progressive, with the aim of ensuring fairness and promoting social equity among individuals and businesses.

Personal income tax in Madagascar is levied on residents' worldwide income, with non-residents taxed only on their Madagascar-sourced income. The system is progressive, meaning that the tax rate increases as income rises, ensuring that higher earners contribute a larger share of their income to the national budget. Corporate tax applies to the profits earned by companies operating within Madagascar, with specific provisions in place to encourage investment in key sectors of the economy, such as mining, agriculture, and manufacturing.

Value-added tax (VAT) is a significant component of Madagascar's tax system, applied to most goods and services consumed within the country. VAT aims to generate revenue in a way that minimally impacts business operations, with certain exemptions and reduced rates provided for essential goods and services to ensure affordability for all segments of the population. Customs duties are levied on imports, with rates varying depending on the type of goods and their origin, serving both as a revenue source and as a means of protecting local industries.

Madagascar also implements specific taxes and levies aimed at funding environmental conservation efforts, social security benefits, and infrastructure projects. These targeted taxes support the government's objectives in promoting sustainable development, enhancing public health and education, and improving the country's roads, ports, and utilities infrastructure.

Despite its comprehensive tax system, Madagascar faces challenges in tax collection and enforcement, with efforts ongoing to improve compliance, expand the tax base, and enhance the efficiency of tax administration. The government is working to modernize the tax system, making use of digital technologies to simplify tax procedures and encourage voluntary compliance among taxpayers.

For individuals and businesses looking to navigate Madagascar's tax landscape, staying informed about the latest tax laws and regulations is crucial. A range of tax planning tools and resources is available to assist taxpayers in understanding their obligations and optimizing their tax positions. For more insights and tools designed to aid in tax planning and compliance in Madagascar, visit our tax hub, featuring the latest tax calculators and comprehensive tax information.