Thinking about leaving Madagascar and want to make sure your tax matters are in order? Ceasing your tax residency is a crucial step that requires adherence to specific legal processes. Here’s a clear and concise guide to help you navigate the steps involved in ceasing your tax residency in Madagascar.
Step 1: Determine Your Residency Status
Before initiating the process, ensure that you meet the criteria for ceasing tax residency. This typically involves proving that you will no longer have a permanent home or primary economic interest in Madagascar. It’s important to understand the residency rules as defined by Malagasy tax law.
Step 2: Notify the Tax Authorities
Draft a formal letter to the Direction Générale des Impôts (DGI) informing them of your intention to cease tax residency. Include relevant details such as your taxpayer identification number, date of departure, and new country of residence. Ensure that this letter is submitted well in advance of your departure date.
Step 3: Settle Outstanding Tax Liabilities
Ensure that all your tax liabilities are settled before you cease your residency. This includes paying any outstanding income taxes, property taxes, and other dues. Obtain a tax clearance certificate from the DGI to confirm that there are no pending tax obligations.
Step 4: Close or Transfer Bank Accounts
Inform your bank of your intention to cease tax residency and either close or transfer your accounts to your new country of residence. Ensure that all financial affairs are in order and that there are no pending transactions that could affect your tax status.
Step 5: Deregister from Local Authorities
Notify local administrative bodies such as the municipal office and other relevant institutions of your departure. This step helps in ensuring that your residency records are updated and that you are no longer counted as a resident for any local administrative purposes.
Step 6: Submit Final Tax Return
File your final tax return with the DGI, covering the period up to your departure date. Ensure that all income earned and taxes paid are accurately reported. This final return is crucial for the official cessation of your tax residency.
Legal References
- Loi n° 2018-043 portant Code Général des Impôts
- Décret n° 2019-192 fixant les modalités d'application du Code Général des Impôts
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