Madagascar has a population of more than 27 million people, with key industries including agriculture, mining, and textiles. There are many types of company formations allowed in Madagascar, and the corporate tax rate is 20% for companies making more than MGA 200 million ($52K USD). The tax year is the calendar year, with tax filings due by May 15th.

Labor and Payroll Considerations:

  • Employment contracts must be written
  • Income tax and social security are withheld from employee pay on a monthly basis
  • Employers must contribute to social security
  • Minimum wages vary based on length of service and industry
  • Agriculture workers have higher minimum wages than other sectors with a range of MGA 170,442 – 345,294 per month
  • Non-Agriculture minimum wage ranges from MGA 168,019 – 340,294
  • Foreign workers require a work and residence permit to begin work in Madagascar

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