Cryptocurrencies in Madagascar are legally classified as intangible assets, akin to stocks or bonds. While crypto is legal in the country, there isn't a dedicated legal framework, instead, general tax laws apply to crypto-related activities. This tax framework is still evolving. The Direction Générale des Impôts (DGI) is the general tax authority responsible for administering all income, capital gains, and value-added taxes under the general tax code, including those related to cryptocurrencies. No specific crypto unit has been identified within the DGI. When it comes to taxation, individual income derived from crypto is subject to progressive rates ranging from 5% to 35%. A flat 20% capital gains tax applies to all cryptocurrency sales, regardless of the holding period, as there are no reduced rates or exemptions for long-term holdings. Converting crypto to fiat currency is a taxable event, with gains subject to the 20% capital gains tax. Similarly, crypto-to-crypto swaps are considered taxable events, and any gains realized are also subject to the 20% capital gains tax. For businesses, the standard corporate tax rate is 20%, though it can be reduced to 10% in free zones. A 20% Value Added Tax (VAT) applies to goods and services purchased using cryptocurrency, but there is no VAT levied on crypto sales themselves. Specific crypto activities also have tax implications. Staking rewards are treated as ordinary income and taxed at the progressive individual rates of 5% to 35%. Mining is considered a business activity, and its income is taxed at the same progressive rates, cryptocurrency mining will be formally legal as of 2025. For Decentralized Finance (DeFi) activities, due to a lack of specific guidance, gains or income are generally taxed either as income (5-35%) or capital gains (20%). Non-fungible tokens (NFTs) are treated as intangible assets, meaning their sale is subject to the 20% capital gains tax. Individuals are required to report gains and losses and maintain transaction records, including dates, amounts, and prices.
Tax Rates
| Effective individual rate | 5 |
| Capital gains tax | 20% flat rate on all cryptocurrency sales |
| Income tax on crypto | 5-35% (progressive brackets as business/other income) |
| Corporate tax | 20% standard rate, 10% in free zones |
| VAT | 20% VAT on goods/services purchased with crypto, no VAT on crypto sales |
Activity Taxes
| Staking | Taxed as ordinary income at progressive rates 5-35% |
| Mining | Business income taxed at 5-35%, legal as of 2025 |
| DeFi | Taxed as income 5-35% or capital gains 20%, no specific guidance |
| NFTs | Intangible assets, 20% capital gains tax on sale |
Taxable Events
| Crypto → Fiat | Taxable, subject to 20% capital gains tax on gains |
| Crypto → Crypto | Taxable, crypto-to-crypto swaps subject to 20% capital gains |
Holding Period
| Holding period benefit | None, no reduced rate or exemption for long-term holding |
Sources