Accreditation of a fiscal representative in Madagascar

Accreditation is an option for entrepreneurs who do not have a permanent establishment in the country in which they operate. The reason being for an optimization of costs related to the création and management of the company or for short and medium term projects that do not require the installation of a company in the country. This option will avoid the dissolution of the company once the project is completed.

The local company will be the fiscal representative of the foreign entity. The latter will have the choice between managing its human resources remotely or entrusting the local company with the management and provision of personnel. The portage salarial will be another option allowing to set up a tripartite relation between the foreign company, the portage company which will be the local company and the worker.

What about accreditation 

The accreditation, in the field of taxation, is an act by which, the competent territorial administration, authorizes a person to act on behalf of a foreign company. It is governed by article 01.03.14 of the general tax code, on the Malagasy territory.

IIt may be a natural person or a legal entity, mandated by the tax bondholder subject to a tax obligation and located outside the territory of Madagascar.

A letter of accreditation is written for the purpose of perfecting the tax returns of the entity concerned, through another person acting on behalf of the former.

Accreditation requirements:

  1. In order to obtain accreditation, an application must be made to the Directorate General of Taxes, either by the representative or by the original bondholder, declaring the willingness to honor the duties incumbent on the holder of the latter.
  2. The accredited person must be registered. However, the time of registration has an impact on the accreditation.

Indeed, if the person was already registered before being accredited, he or she must not be a repeat offender in tax matters.

Mais dans le cas contraire, la personne accréditée doit s’immatriculer après obtention de l’accréditation, pour le compte de la personne non-résidente.

 The purpose of accreditation:

Accreditation can be terminated by the occurrence of two circumstances, namely, the official renunciation of the interested party, by means of a letter of renunciation of accreditation. But also by the fact of an ex-officio cessation, regulated by the tax authorities. This may be the result of the accredited representative’s legal incapacity, as determined by the tax authorities, or of the accredited representative’s failure to perform his or her duties in accordance with the accreditation letter.

If you need a tax representative for your entity, MDG Services can help you with your tax obligations.