Any document executed within the territory of the Republic of Madagascar is subject to tax registration requirements. These include, among others, civil documents, extrajudicial documents, public documents, authenticated documents, and private documents.
The Various Laws in Madagascar
By definition:
- Civil records are documents that prove a person’s civil status, such as marriage certificates, birth certificates, divorce decrees, and death certificates.
- Extrajudicial documents are those drawn up by a public official outside of a judicial proceeding.
- Public documents include documents issued by administrative authorities, notarized documents, declarations, endorsements, certifications, registrations, etc.
- Authentic and certified documents are those drawn up in accordance with legal formalities by a public official, such as real estate sales contracts, minutes, wills, etc.
- Private documents are documents drawn up by private individuals, such as sales contracts, lease agreements, acknowledgments of debt, various statements of facts, etc.
Deadlines for the tax registration of deeds in Madagascar
Civil and extrajudicial deeds are recorded in the official register at the time the deed is drawn up.
The following must be recorded:
- Within fifteen (15) days: power of attorney documents, preliminary sales agreements, and deeds of transfer of ownership. Generally speaking, all deeds related to the profession of intermediary in the purchase and sale of real estate or business assets, or to the status of owner acquired through the habitual purchase of such property with the intent to resell it—either in its entirety for all property without exception, or in parcels or lots for urban or suburban land—unless they have been drawn up by a notarial deed.
- no later than one (1) month from their date: documents drawn up by bailiffs and auctioneers
- within two (2) months of their date: notarial deeds, authenticated documents, and deeds drawn up by court clerks, with the exception of wills, conciliation records drawn up by judges, deeds transferring ownership or usufruct of real property, business assets or client bases, motor vehicles, or the assignment of rights to a lease or the benefit of a promise of lease covering all or part of a building, all deeds recording the formation, extension, conversion, or dissolution of a corporation, the increase, amortization, or reduction of its capital, as well as shareholders’ current account agreements, deeds and documents of any kind intended for filing with a land registry or a cadastral office, with the exception of applications for registration and applications for the recording of deeds, agreements, contracts, and deeds transferring the right to use personal property,…
- no later than three (3) months after the testator’s death: wills that are filed with notaries or public officials
Registration fees for legal documents in Madagascar
The registration of deeds is subject to the payment of a fixed fee for those that do not involve the transfer of ownership, usufruct, or use of movable or immovable property, nor a marital contribution, a corporate contribution, or the division of movable or immovable property, …
For these deeds, the party concerned must pay a fee ranging from 2 000 Ar to 16 000 Ar, depending on the deed
A proportional fee applies to transfers of ownership, usufruct, or right of use of movable or immovable property between living persons, as well as to deeds recording a marital contribution, a corporate contribution, or the division of movable or immovable property.
It is calculated as follows: proportional registration fee = base amount * rate
The base amount is the price plus any applicable charges. It must exceed the Administration’s estimate; otherwise, the administrative value will be used. However, the minimum fee is 10 000 Ar.
For leases, subleases, and contractual extensions with limited terms, the applicable rates are as follows:
-1% for leases of residential properties, leases of pastureland and animal feed, livestock leases or livestock registration, and leases for human food.
-2% for leases of business assets and other personal property, as well as leases of mixed-use properties.
To best ensure compliance with your tax obligations, please feel free to contact us through our website, www.madagascar-services.com, for the best tax outsourcing services.