Mg Corporate Income Tax

---
name: mg-corporate-income-tax
description: "Madagascar 2026 ordinary IR company computation, minimum tax, IS boundary, return dates and evidence required; source-cited partial scope."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/mg-corporate-income-tax"
  jurisdiction: "MG"
  tax_year: "2026"
  last_updated: "2026-11-01"
---

# Madagascar corporate income tax and business-regime routing v1.1

> **General reference only.** This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person’s facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in Madagascar.

## Who this applies to

Compute ordinary Impôt sur les Revenus (IR) for a company after checking its activity, regime and residence. Mandatory IR starts at annual turnover and/or income of MGA 400,000,000; an IR election is available from MGA 200,000,000. An election for the régime du réel brings both IR and TVA. Cooperatives are expressly brought into IR irrespective of turnover by the July LFR amendment to 01.01.13 VII. Education, agricultural/forest exporters and the other express exceptions need separate routing, even below the threshold (CDI 01.01.02, 01.01.05 V–VII). Residents include companies with a registered office and/or effective management in Madagascar; their income is covered regardless of origin (01.01.04–05). [Official 2026 CDI](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf).

## Rates, bands and thresholds

| Item and conditions | 2026 amount | Act/article and official source |
|---|---|---|
| Ordinary IR, taxable profit rounded down to whole MGA 1,000 | 20% | [CDI 01.01.14 I-A](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf) |
| Minimum for other enterprises existing on 1 January | MGA 1,000,000 + 1% annual turnover excluding VAT | [CDI 01.01.14 I-A](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf) |
| Agricultural, artisanal, industrial, mining, hotel and tourism minimum | MGA 500,000 + 1% turnover excluding VAT | [CDI 01.01.14 I-A](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf) |
| Petroleum-company minimum; retail-fuel minimum | MGA 1,000,000 + 0.7%; 0.1% turnover respectively | [CDI 01.01.14 I-A](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf) |
| Ordinary independent-business IS below mandatory IR threshold, unless exception or election | 5% gross turnover/income; base rounded down to MGA 10,000 | [CDI 01.02.02,04–05](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf) |
| Qualifying new approved-management-centre members or taxpayers newly registered online by their own clients, first exercises | 3% IS | [CDI 01.02.05](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf) |

Transport minimum tax is set by regulation; do not put transport into the general sector minimum. IS is not a tax on 70% of turnover. Article 01.02.04 gives a conditional approved-centre allowance of 50% capped at MGA 10,000,000, excluding the new members under 01.02.05. Article 01.02.05 bis gives a 2% reduction on specified documented costs (or documented sales for the named producers/intermediaries/artisans), with tax no lower than 3% turnover; obtain the evidence before applying it. Regulatory minima and implementation conditions remain outside the calculation scope.

## The base

Start from net accounting profit and reconcile necessary business expenses supported by documents, non-deductible items, taxable income and exemptions under CDI 01.01.09–11. Do not calculate IR on turnover. Carryforward of qualifying prior deficits is permitted over a five-year period (01.01.10 11°); track each year separately. Do not substitute five accounting exercises for the statutory five years. The accounting year can be the calendar year, July–June or another twelve-month period. A first period can be shorter or longer, capped at eighteen months absent permission (01.01.09). Round taxable profit, calculate ordinary IR, then compare with the applicable minimum. Deduct evidenced provisional payments from the tax liability, preserving any excess for the applicable credit procedure. [CDI](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf). Investment reductions, sector regimes and complex deduction limitations require a separate calculation.

## Deadlines and filing

For a 31 December close, declare results and pay by 15 May of the next year. For 30 June, the date is 15 November of that year. Other closes use day 15 of the fourth month after closing. Bimonthly provisional payments fall due by day 15 of the last month of each period (CPF I-11). The amount formula depends on the decision under CDI 01.01.15 and is not assumed here.

Prepare the signed IR declaration, tax reconciliation, provisional-payment schedule and liasse fiscale. CDI 01.01.19 requires the balance sheet, result statements by function and nature, cash flow statement, changes in equity, notes and minimum supporting information under PCG2005; the July LFR amendment expressly includes the fixed-asset/depreciation schedule and provisions/impairment statement in the annexes, plus deposit on the dedicated online financial-statement platform. CPF I-11 directs the signed declaration to the inspector/controller at the competent place of taxation, who issues a receipt. Keep that receipt and payment proof. [CPF I-11](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CPF-LFI%202026.pdf); [CDI 01.01.19](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf). Current electronic return fields, portal submission sequence and payment-reference process are not verified, so this is a computation and statutory filing checklist, not a portal filing guide.

## Penalties and interest

For turnover at least the mandatory IR threshold, failure to lodge a required return/document attracts MGA 200,000 (CDI 20.01.52). Under 20.01.53 the late-payment scale is 3% for the first month and 1% each later month for this turnover band, with each started month counted and a minimum MGA 10,000 per tax/period. An understatement attracts 40% of additional rights, at least MGA 100,000 (20.01.54). Other turnover bands have different penalties. Do not add these percentages without identifying the actual breach and period. [CDI](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf).

## Cross-border points

Resident-company income is not limited to Madagascar-source income. Treaty allocation and non-resident service payments go to [cross-border](mg-cross-border.md); related-party adjustments go to [transfer pricing](mg-transfer-pricing.md). Cooperative interest/rebate taxation belongs to the capital-income rules, not a reduced ordinary corporate IR rate. The July LFR adds IR for cooperatives regardless of turnover under 01.01.13 VII; member taxation follows ordinary rules. Merger loss transfers under amended 01.01.11 III require express tax-authority authorization and implementing conditions, so are not an automatic carryforward here. Do not treat a foreign incorporation address as proof of non-residence.

## Two worked examples that recompute

Hypothetical general trading companies existing on 1 January, no reductions; profit already tax-adjusted. Article 01.01.14 applies.

```oa-check
name: Ordinary IR exceeds minimum
inputs:
  profit: 80000999
  turnover: 500000000
  paid: 8000000
steps:
  - rounded: floor(profit / 1000) * 1000
  - ordinary: rounded * 0.20
  - minimum: 1000000 + turnover * 0.01
  - liability: max(ordinary, minimum)
  - balance: liability - paid
expected:
  rounded: 80000000
  liability: 16000000
  balance: 8000000
```

```oa-check
name: Low profit company minimum controls
inputs:
  profit: 5000000
  turnover: 600000000
steps:
  - ordinary: floor(profit / 1000) * 1000 * 0.20
  - minimum: 1000000 + turnover * 0.01
  - liability: max(ordinary, minimum)
expected:
  ordinary: 1000000
  minimum: 7000000
  liability: 7000000
```

## Ask the client first

Get the NIF, regime/election, activities and regulated sector, financial year, residence/effective-management facts, VAT-exclusive turnover, tax-adjusted profit, loss-year schedule, invoices and payment evidence, investment/approved-centre claims, related parties and provisional receipts. Ask about fuel, transport, public contracts, export and free-zone status before using the ordinary result.

## Sources

| Source and provisions actually read | Read on |
|---|---|
| [DGI 2026 CDI](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CDI-LFI%202026.pdf), 01.01.02–05,09–15,19; 01.02.02–07; 20.01.51–54 | 2026-11-01 |
| [DGI 2026 CPF](https://www.impots.mg/explorer?path=/legislation/Codes%20et%20Manuels/CPF-LFI%202026.pdf), I-11–13 | 2026-11-01 |
| [Signed Loi 2026-004, LFR 2026](https://www.mef.gov.mg/assets/vendor/ckeditor/plugins/kcfinder/upload/files/2026/lfr/LFR2026%20Ampliation%20SIGNEE%20DATEE.pdf), tax amendments and article 22 entry provision read | 2026-11-01 |

**Not yet confirmed:** Exact radio/posted publication date activating the July LFR under article 22; do not resolve a transaction at that transition without the publication evidence. IS regional/transport minimum schedules, qualifying-centre implementing conditions, investment-eligible assets, detailed provisional-payment decision, sector/public-contract regimes, the old 10% rate on cooperative interest and rebates distributed to members, and current portal fields. These claims from the old Guide are not calculation inputs.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-11-01. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `mg-corporate-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/mg-corporate-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.