← Guides / Madagascar

Madagascar Crypto Tax Guide 2026

Madagascar does not have specific cryptocurrency legislation, but crypto assets are treated as movable property under the General Tax Code. Gains from crypto disposals are taxed as income from movable property (revenus des capitaux mobiliers) under the progressive IRPP rates (0–36%). Mining, staking, and airdrop income is taxable at market value on receipt. Crypto-to-crypto trades are taxable events. The DGI has issued guidance confirming that existing tax rules apply to digital assets.

Overview — Crypto Taxation in Madagascar

The Direction Générale des Impôts (DGI) considers cryptocurrency and digital assets as movable property for tax purposes. The tax treatment follows the rules for income from movable property (revenus des capitaux mobiliers). Gains from the disposal of crypto assets are taxable as income, not capital gains. The Bank of Madagascar (Banque Centrale de Madagascar) has not recognised cryptocurrencies as legal tender but has not prohibited their ownership or trading. The government has signalled interest in regulating digital assets, and a regulatory framework is under development in coordination with regional bodies. Taxpayers engaged in crypto activities should maintain detailed records and declare their crypto income in their annual tax returns.

Taxable Events

The following crypto transactions are generally taxable in Madagascar:

  • Selling crypto for fiat (MGA or foreign currency) — taxable gain
  • Crypto-to-crypto trades (e.g., BTC to ETH) — taxable disposal at fair market value
  • Using crypto to pay for goods or services — taxable disposal at fair market value
  • Mining income — fair market value of coins at receipt is taxable as income
  • Staking rewards — value at receipt is taxable as income
  • Airdrops & forks — fair market value at receipt is taxable as income
  • DeFi income — lending interest, yield farming returns are taxable

The gain is calculated as the difference between the disposal proceeds (in MGA equivalent) and the acquisition cost (including transaction fees). For income received (mining, staking, airdrops), the full market value at the time of receipt is taxable. There is no specific exemption for long-term holdings.

Tax Rates — Movable Property Income

Crypto income is categorised as income from movable property and is subject to the following tax treatment:

  • Individuals — progressive IRPP rates 0–36% (included in total taxable income)
  • Companies — standard IBS rate of 20% (or reduced rates for qualifying sectors)
  • Professional deduction — the 20% professional deduction for salaries does not apply to crypto income

For individuals, crypto gains are added to salary, business income, and other earnings before applying the progressive brackets. The MGA 2,000,000 tax-free threshold applies to total income including crypto gains. A high-income trader could face a 36% marginal rate on crypto profits.

Record-Keeping & Reporting

DGI requires taxpayers to maintain records of all crypto transactions for tax purposes. Recommended records include:

  • Date and time of each transaction
  • Type of transaction (buy, sell, trade, receive, send)
  • Crypto amount and MGA equivalent at transaction time
  • Exchange or platform used
  • Wallet addresses involved
  • Transaction fees and exchange rate source
  • Purpose of transaction (personal, business, investment)

Taxpayers should report crypto income in their annual tax return filed by 30 April. Using crypto tax software to track trades and calculate MGA-equivalent values at transaction time is recommended. DGI may request information from exchanges under tax information exchange agreements.

FAQs

Is buying crypto with MGA a taxable event?

No, buying crypto with fiat currency is not a taxable event. Tax arises only on disposal (sale, trade, or use) of the crypto.

Do I need to pay tax if I transfer crypto between my own wallets?

No, transferring crypto between wallets you own is not a taxable event. However, you should maintain records to track cost basis across wallets.

What if I don't report my crypto income?

Non-compliance carries the same penalties as other tax evasion — up to 100% of the tax due plus interest at 1.5% per month, and potential criminal prosecution. DGI is developing capabilities to identify unreported crypto transactions.

Disclaimer

This guide provides general information about Malagasy cryptocurrency taxation for the 2026 tax year. Crypto tax guidance is evolving. Always consult with a qualified Malagasy tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.

Related Guides

Timor-Leste Property Tax Guide: Transfer Tax ~2%, Minimal Annual Land Tax 2026Timor-Leste property tax — transfer tax approximately 2% of property value, minimal annual land tax on undeveloped land, no annual residential property tax, and registration fees for 2026.Comoros Corporate Tax Guide: CIT 50%, New Business 15%, Mining 35% 2026Comoros Corporate Income Tax — 50% standard rate (highest in Africa), 15% for new businesses (first 5 years), 35% for mining/petroleum, and compliance for 2026.Japan Wealth Tax Guide (2026 — No Net Wealth Tax, Fixed Asset Tax 1.4% on Property)Japan's approach to wealth taxation — no net wealth tax exists; the closest equivalent is fixed asset tax (固定資産税) at 1.4% of assessed value on real estate holdings. Overview of Japan's property-based Denmark Crypto Exit Tax Rules (Leaving Denmark with Crypto)Danish crypto exit taxation — deemed disposal upon leaving, calculation of gain/loss, 7-year deferred payment scheme, and entry rules.Ethiopia Crypto Tax Guide 2026 — Taxed as Income or Service IncomeEthiopian cryptocurrency taxation. Crypto transactions taxed as business income or service income. Mining, trading, staking, and DeFi activities. No specific crypto legislation — general income tax prEgypt Property Tax Guide 2026 — Real Estate Tax 2.5% of Annual Rental Value, Rental Income Tax, Registration FeesEgyptian property and real estate taxes for 2026. Annual real estate tax at 2.5% of rental value, rental income tax at 10% after 50% deduction, building permit fees, and property registration costs.
Browse all guides →