Madagascar – Employer of Record & Payroll
Africa Deployments Madagascar offers our clients Employer of Record solutions & Payroll covering all of the regions within. We offer full time employment or fixed terms contracts based on your requirements in Madagascar for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Madagascar.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis, ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. We work with a large amount of NGO’s, International Development Agencies and private sector in Madagascar.
In addition to our services we can offer you the employee in Madagascar, Medical, Disability, Life and Workmen’s Compensation Insurances.
Madagascar, officially the Republic of Madagascar, and previously known as the Malagasy Republic, is an island country in the Indian Ocean, approximately 400 kilometres off the coast of East Africa. At 592,800 square kilometres Madagascar is the world’s second-largest island country.
What income is Taxable in Madagascar:
The Taxable income public or private salaries, wages, fees, allowances and other gains or profits from employment, such as bonuses, premiums, non-cash benefits and all fixed or remuneration / other perquisites, alimony payments provided on a compulsory basis with the exception of those for dependent children.
What income is exempt from taxes in Madagascar:
- Pensions, life annuities in general, all permanent and temporary allowances received as compensation for damages suffered.
- Allowances and increases for pension
- Salaries attached to distinction of honor
- Balances of citizens called to serve within or outside the armed forces for the duration of deployment.
- Retirement indemnity not exceeding one year salary
- Medical Expenses
- Family allowances
Can you give Fringe Benefits:
- Canteen expenses up tot MGA 5,000
- Car Benefits – used for both professional and personal purposes estimated at 15% of total monthly expenses incurred by the company (Fuel, maintenance and repairs)
- Housing / Accommodation – 50% of the actual rent or monthly bond payment not exceeding 25% of the fixed remunerations paid in cash
- Phone Allowance – 15% of the total actual monthly expense paid by the employer
What are the Employer & Employee contributions in Madagascar:
- Social Security (CNAPS) – The contributions are 13% (MGA 208,000 capped) by Employer and 1% (MGA 16,000 capped) by employee.
- Employer pays – 9.5% for Old Age, Disability and Pension. 25% work injury and 2.25% family allowances
- Employee pays 1% for Old Age, Disability and Pension
What Double Tax Treaties are in place in Madagascar:
Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Madagascar.