Madagascar

The following activities benefit from a special tax and/or customs regime:

Free zone (free trade zone)

Free zone law is available for industrial and other service providers that export all of their products. Taxation of free zone enterprise and free trade zone is provided from 2022 in the General Tax Law. If eligible under the free zone law, a CIT exemption is provided during the first two to five years and a reduced CIT of 10% is levied thereafter.  

At the end of the exemption period, investments in assets depreciable over a period of at least three years, acquired new, are entitled to a tax reduction equal to the tax corresponding to 25% of the amount of the new investments. The right to reduction that can be used for the tax year cannot exceed 50% of tax actually due. The balance is carried forward with the same limitation to subsequent years, for a period not exceeding that of tax depreciation.

Companies investing in renewable energy, tourism, industrial, civil work and construction, and transformation

Companies investing in renewable energy, tourism, industrial, civil work and construction, and transformation can benefit from a tax reduction equal to the tax calculated on 20% of the amount of investment that they realised during the related tax year. The right to reduction that can be used for the tax year cannot exceed 50% of tax actually due. The balance is carried forward with the same limitation to subsequent years, until clearance.

Big investment mining

A mining company committing to invest more than 50 million United States dollars (USD) is considered a big investment mining company. The big investment mining law provides a minimum income tax exemption, a reduced CIT rate for the transformation entity (i.e. the entity in charge of processing the extracted minerals), exemption from custom and importation duties, and VAT reimbursement on locally purchased equipment and investments.

Petroleum code

The petroleum code provides a custom and importation duties exemption for hydrocarbon research, exploration, and exploitation activities.

Leasing law

The leasing law provides that leasing activities can benefit from CIT exemption and reduction of tax rate during the first four years.

Foreign tax credit

Except under a tax treaty, there is no foreign tax credit rule under Malagasy tax law.