Madagascar Land ownership taxes

Madagascar Land ownership taxes

By Property-Madagascar.

Madagascar Land ownership taxes

Madagascar Land ownership taxes

Diana and Mahajanga real estate agencies

Madagascar Land ownership taxes. In Madagascar, the landed properties are classified in two distinct categories: taxable real properties (prone to the taxes) and exonerated buildings (properties free from payment of properties taxes). For the two varieties of real estate property, the regulation of the taxes is carried out each year at the office of the commune where the ground is localised. In  case of piece of undevelopped land, the amount of the royalties depends on the nature of the farms which are arranged there. The nonexploitable plots of land and the grounds in waste land are also chargeable. The failure to the payment of the property taxes is the object of a fine. Every year, before October 15th, the taxpayers must declare their real properties near the office of the taxes attached to their geographical district to facilitate the afférant calculation of the royalties relative to it.
Except the exonerated properties, all the real properties listed on the malagasy territory are taxable. The amount of the properties taxes is calculated according to the nature of the funds (undeveloped or built ground). The regulation of the royalties is done every year during a period specified by the State, generally at the beginning of year.

Buildings qualifying an exemption

Regarding the pieces of undevelopped lands, the plots of land belonging to the State or used by the communities are exonerated. The public gardens of a surface lower than 20 ares are included in this category of real properties free from payment of taxes.
Whatever their vocation, the built properties integrating the heritage of the State benefit from an exemption.
Any building which does not generate incomes and intended for a use of general interest is not the object of royalty related to the land.
The grounds built for public use, the schools, the hospitals, the churches and the social or humane infrastructures vocation are also exonerated.
The new buildings, additions of existing constructions and rehabilitated block of flats are given an exemption during the five years succeeding their completion.

Classification of the taxes according to the nature of the ground

The classification and the amount of the taxes relative to land depend on the nature of the real property taken into account. The pieces of undevelopped lands being the object of an imposition are distributed in six distinct categories.
The amount of the royalties to annually pay varies according to whether it is an exploitation of aromatic plants, of a food crop or truck farming, a forestry development, a swamp, a not exploited exploitable plot or a non-exploitable ground.
For the pieces of developped lands, whatever the consistency of the consistency of the arranged structure, its vocation and its site, since it is about a property belonging to a person or institution different from the State, the property funds is taxable.
The uninhabited buildings, the deposits and the building sites are also taxable.

Obligations of the owners of taxable properties

Every year, before October 15th, the taxpayers are held to make a statement specifying the legal situation of the ground, its surface, the nature of the cultures or other exploitations which are arranged there. If the plot(s) of land are rented, the name of the tenants and the rent of the ground are also to declare.
For the frames, the owner must indicate the consistency of the building set up on his ground. The occupied and nonoccupied buildings must be taken into account. In the event of hiring, the names of the tenants and lodged occupants on a purely free basis are also to mention on the form of the office of taxes.

Basis of valuation of the properties taxes

With regard to the tax of the pieces of developped lands, the rate is fixed by the members of the Town or Municipal council. According to article 10.03.06, its rate must be ranging between 2 and 5% of the rental value of the building. The minimal threshold of Tax on land on the Property Built however is fixed at 1000 ariary a year and by building.
For the undeveloped sites, the value of the royalty varies according to the vocation of the property or the exploitation. Generally, it is fixed at 1% of the monetary value of the ground. The minimal threshold of the tax is of 500 ariary per plot.
In the event of devastation of forestry developments, food crops and other plantations by a natural disaster or a calamity, the mayor of a commune can reduce the taxes or exonerate the plantations prone to the damage.

Sanctions and penalties

The declaration of the real properties must imperatively be acomplished before October 15th. In case of undeveloped site like in case of a built piece, any delay of declaration is liable to a fine of      10 000 Ariary.
The failure to settle the royalty specified by the office of the taxes is sanctioned by a fine evaluated at 50% of the tax. In the event of repetition, the penalty is at 100%.
If necessary, the State can proceed to a checking of the properties in hiring. The refusal of access to the administrative officers elected by the administration is sanctioned by a fine of 200 000 Ariary.

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