Madagascar

{"ftc_utility":"medium","fbar_trigger_notes":"US expats with local Malagasy Ariary (MGA) bank accounts exceeding USD 10,000 equivalent at any point in the calendar year must file FinCEN 114. The Malagasy banking system is limited and many expats maintain accounts; the threshold is easily triggered on mid-level expat salaries.","ftc_utility_reason":"Madagascar taxes resident individuals on worldwide income at rates up to 25%, which is below the top US marginal rate. The Foreign Tax Credit provides partial shelter for income taxed locally, but the rate differential means US tax may still be owed on higher-income earners. FEIE is often more efficient for earned income.","presence_day_count_notes":"Madagascar does not impose strict short-stay visa limits that would prevent a US expat from accumulating 330 qualifying days in a 12-month period, but visa categories are limited. Long-stay residents typically require a residence permit. The absence of a straightforward long-stay visa may complicate bona fide residence establishment.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":7200,"local_tax_rate_on_earned_income":0.25,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by a resident is subject to progressive individual income tax at rates up to 25%. No treaty provisions provide relief.","tax_rate":0.25,"locally_taxed":true},"social_security":{"notes":"No US-Madagascar totalization agreement or income tax treaty exists. US Social Security benefits received by a Madagascar resident are potentially taxable as foreign income under the worldwide income basis.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No treaty exists to exempt Roth distributions. Amounts received may be treated as income by Malagasy tax authorities. The tax-free character recognized by US law is not recognized locally.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Madagascar has no income tax treaty with the United States. Distributions from US 401(k) or IRA accounts received by a Madagascar tax resident would be treated as foreign-source income and taxed at progressive rates up to 25%. Madagascar taxes residents on worldwide income.","tax_rate":0.25,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.25,"notes":"Madagascar does not have a standalone capital gains tax. Gains on asset disposals are generally included in taxable income and taxed at ordinary income tax rates, with the top marginal rate of 25%.","details":{"tax_type":"Capital Gains Tax","country_name":"Madagascar","country_iso_code":"MDG","source_references":["PwC Worldwide Tax Summaries - Madagascar"],"last_verified_date":"2026-06-03","general_description":"Capital gains are not subject to a separate tax regime in Madagascar. Gains realized by individuals or corporations on disposal of assets are treated as ordinary income and taxed under the standard income tax rules. The top individual rate is 25% and the standard corporate rate is 20%.","corporate_capital_gains":{"rate":0.2,"tax_treatment":"Included in taxable corporate income and taxed at the standard corporate income tax rate of 20%."},"individual_capital_gains":{"rate":0.25,"tax_treatment":"Included in taxable individual income and taxed at progressive rates up to 25%."}}}

{"notes":"Dividends paid to non-resident individuals and companies are subject to a withholding tax. The standard withholding rate on dividends is 10% for residents and 20% for non-residents, though treaty rates may reduce the non-resident rate.","rates":[{"rate":0.1,"type":"withholding","notes":"Standard withholding rate on dividends paid to resident individuals."},{"rate":0.2,"type":"withholding","notes":"Standard withholding rate on dividends paid to non-residents absent a tax treaty."}]}