In confirmation of the amendments introduced by the 2024 Finance Law for Madagascar, there are several important adjustments to the Tax Procedure Code (TPC) in Madagascar. This article will guide you through everything you need to know. First, it addresses the obligations of taxpayers subject to the Synthetic Tax (ST). Then, it covers the documentation requirements for Transfer Pricing.
Registration, Declarations, and Payment of Tax
When you create your company, the default tax regime applied is ST. However, in the next fiscal year, your annual turnover will determine your new tax regime. But you always have the option to choose the real regime.
Obligations of Taxpayers Subject to Synthetic Tax
Declarations related to Synthetic Tax (ST), for companies like yours with a staggered fiscal year, must be submitted by the end of the third month following the close of the fiscal year. (Article I-17)
Obligations of Associated Companies
Additionally, for associated companies like yours, conducting intragroup transactions with a value equal to or greater than Ar 450,000,000, you are subject to the Transfer Pricing documentation requirement. Your transactions must comply with the criteria defined by the current legislative articles.
Obligation to Issue Regular Invoices
For all your transactions, the use of electronic invoices generated by the tax administration’s e-Invoicing system is now mandatory. The specific rules for this requirement will be established by decree. (Article IV-21)
Why Choose MDG Services?
Our clients have already trusted us with managing their taxes. You should do the same! Our team is ready to help you optimize the management of your tax declarations in Madagascar, while keeping you informed of the latest fiscal changes. We will also help you comply with the requirements set forth in Tax Procedure Code in Madagascar.