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Luxembourg vs Madagascar
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇱🇺 Luxembourg
vs
🇲🇬 Madagascar
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–42%
Tax reform package continuing; thresholds indexed
No change
0–20%
20% top; climate adaptation and cyclone resilience priority
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
3–17%
Standard 17% maintained
No change
20%
20% TVA maintained
No change
Corporate Tax Rate
Corporate Tax Rate
~24.94%
Global minimum tax fully embedded in domestic law
No change
20%
20% IBS; mineral royalties growing
No change
Capital Gains Tax
Capital Gains Tax
0–42%
No major reform
No change
20%
20% as income
No change
Social Security & Payroll
Social Security / Payroll
~27%
Pension reform discussions; contribution structure stable
No change
~19%
CNaPS reform; coverage expanding
No change
State, Regional & Local Taxes

🇱🇺 LuxembourgMunicipal Business & Property Taxes

Luxembourg's 102 communes levy the Gewerbesteuer (business tax) on companies at rates set by each commune (base rate 3% + municipal multiplier 175%–400% = effective 6–10.5%), and communal income tax additionals on individuals. Luxembourg City has higher rates than rural communes. The combined corporate tax (national + municipal) ranges from ~24.9% to ~26.01%. Luxembourg is a major holding company and fund domicile jurisdiction with extensive tax treaty networks.

🇲🇬 MadagascarRegion & 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.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Luxembourg vs Madagascar: Key Tax Differences (2026)

💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (0–42% vs 0–20%). 🇲🇬 Madagascar is more favourable for high earners.

🛒 VAT/Sales Tax: Madagascar has a higher consumption tax (3–17% vs 20%).

🏢 Corporate Tax: 🇲🇬 Madagascar offers a lower corporate rate (20% vs 24.94%), which can influence business location decisions.

📈 Capital Gains: 🇲🇬 Madagascar taxes investment gains at a lower rate (20% vs 42%), benefiting investors.

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