Madagascar: Income tax treaty signed with Canada

Madagascar: Income tax treaty signed with Canada

An income tax treaty between Canada and Madagascar was signed on 24 November 2016.

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The treaty includes provisions that limit the rate of withholding tax to:

  • 5% for dividends paid to a company that holds directly or indirectly at least 25% of the voting power of the company that pays the dividends
  • 15% for dividends paid in all other cases
  • 10% for payments of interest and royalties

The treaty exempts from withholding tax certain payments of interest, and limits the rate of withholding tax to 5% on certain payments of royalties.

The Madagascar-Canada income tax treaty includes provisions reflecting the standard developed by the Organisation for Economic Cooperation and Development (OECD) for the exchange of information for tax purposes. The treaty will enter into force once the signatories notified each other that the procedures required by their laws for the bringing into force of the treaty have been completed. 

 

Read text of the income tax treaty

Read a December 2016 report prepared by the KPMG member firm in Canada

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