Ethiopia vs Madagascar
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
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Enter your income to see your estimated annual tax liability in each country — side by side.
🇪🇹 Ethiopia — Regional State Taxes
Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.
🇲🇬 Madagascar — Region & Commune Taxes
Madagascar's 6 provinces, 22 regions, and 1,695 communes levy Taxe Foncière sur les Terrains (TFT), Taxe Foncière sur les Propriétés Bâties (TFPB), and Taxe Professionnelle (TP — business licence). The Direction Générale des Impôts (DGI) administers national taxes. Madagascar is highly dependent on vanilla (world's largest producer), cloves, seafood exports, and mining (ilmenite, cobalt via Ambatovy). It's among the world's poorest countries. Cyclones regularly disrupt the economy and infrastructure.
Ethiopia vs Madagascar: Key Tax Differences (2026)
💰 Income Tax: 🇪🇹 Ethiopia has a higher top income tax rate (0–35% vs 0–20%). 🇲🇬 Madagascar is more favourable for high earners.
🛒 VAT/Sales Tax: Madagascar has a higher consumption tax (15% vs 20%).
🏢 Corporate Tax: 🇲🇬 Madagascar offers a lower corporate rate (20% vs 30%), which can influence business location decisions.
📈 Capital Gains: 🇪🇹 Ethiopia taxes investment gains at a lower rate (15% vs 20%), benefiting investors.