Money transfers to Madagascar : Simplicity and freedom
At first glance, you’re probably wondering about the possibility to freely transfer money or conduct transactions with foreign service providers? Be aware that Malagasy law grants you a great deal of freedom in financial matters, including money transfers.
However, this freedom comes with the obligation to comply with existing laws and international commitments. These commitments are made in accordance with Law n°2006-008 on foreign exchange codes in Madagascar.
If your company is newly created, the transfer of share capital is free of any authorization. However, if you need start-up or operating capital, you will need to obtain authorization from External Finance.
Money transfer from Madagascar: Tax and regulatory implications
First of all, it’s important to know that money transfers in Madagascar be subject to certain tax and regulatory obligations. Ultimately, these obligations are designed to ensure the transparency of financial transactions and to combat money laundering and the financing of terrorism.
Malagasy residents and non-residents alike must declare money transfers over a certain threshold to the Ministry of Finance. This declaration enables the authorities to monitor financial flows and ensure compliance with current regulations.
Since you are planning to transfer money to or from Madagascar, it is crucial to familiarize yourself with the applicable tax and regulatory obligations. This will enable you to comply with the law and finalize your transfer with complete peace of mind.
The options for transferring money to Madagascar are many and varied, but it’s important that you consider the tax and regulatory implications before making a transaction. Don’t hesitate to consult the relevant authorities or contact a professional in the financial sector for personalized advice and to ensure that your transfer goes smoothly.
Dividend transfer: An attractive tax regime
The taxation of dividends received by foreign investors benefits from a favorable tax regime. Dividend transactions in favor of resident investors are exempt from tax and transfer authorization. This means that you can receive your dividends without withholding tax and transfer them freely to your country of residence. On the other hand, dividends received by non-resident investors are taxed at the Intermittent Income Tax rate of 10%.
This incentive is designed to encourage expatriate investment in Madagascar and contribute to the country’s economic development. It also enables foreign investors to take full advantage of the opportunities offered by the Malagasy market, while benefiting from an attractive tax regime.
So, whether you’re planning to transfer funds to Madagascar or invest in local companies, Madagascar’s regulations offer a favorable and flexible framework for your financial operations. The freedom to transfer money and the tax exemption on dividends are major advantages for foreign investors wishing to set up in Madagascar.
In conclusion, it is essential that investors comply with regulatory procedures and requirements before transferring money to or from Madagascar. This will ensure the security and transparency of your financial transactions. Don’t hesitate to consult the relevant authorities or contact us to benefit from our support.