According to Article 10 of the General Tax Code of Madagascar, an individual is considered a tax resident if they meet any of the following criteria:
- Physical presence in Madagascar for more than 183 days in a calendar year.
- Domicile in Madagascar, as evidenced by a permanent home or habitual residence.
- Exercise of a professional activity in Madagascar.
- Ownership of real estate in Madagascar.
For companies, tax residency is determined based on their place of incorporation or management and control. A company is considered a tax resident if it is incorporated in Madagascar or if its management and control are exercised in Madagascar.
Impact of International Tax Treaties on Tax Residency Criteria
Madagascar has entered into several double taxation agreements (DTAs) with other countries. These DTAs may modify or provide exceptions to the standard criteria for tax residency as defined in domestic law.
For example, the DTA between Madagascar and France provides that an individual is considered a resident of Madagascar if they have their habitual abode in Madagascar. This definition differs from the domestic law definition, which focuses on physical presence.
Another example is the DTA between Madagascar and Mauritius. This DTA includes a tie-breaker rule for individuals who are considered residents of both Madagascar and Mauritius under their respective domestic laws. The tie-breaker rule states that the individual will be considered a resident of the country where they have their permanent home.
These treaty-specific modifications aim to prevent double taxation and provide clarity for individuals and companies operating in multiple jurisdictions. They reflect the mutual agreement between Madagascar and its treaty partners to facilitate tax compliance and enhance economic cooperation.
If you need any other informational tax guides for other countries, feel free to browse our other articles below:
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