This information is derived from the State Department's Office of Investment Affairs' Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov
Last Published: 11/7/2016

The Free Zone regime, established by the Law on Free Zone Companies enacted in 2008, was further clarified by an implementing decree adopted only in March 2015. The regime is applicable to companies that export 95 percent of their production and that operate in specific categories of activities. These include: enterprises engaged in manufacturing as categorized by the United Nations International Standard Industrial Classification (ISIC); enterprises engaged in intensive basic production in agriculture, livestock and fisheries resources, and service enterprises active in specific fields, including telemarketing and telecommunications. The Free Zone regime provides fiscal and other advantages, to include: exemptions from corporate income tax for up to five years and a 10 percent corporate income tax liability thereafter, exemptions from customs and export duties and taxes, and automatic reimbursement of VAT.

These incentives are extended both to foreign and local investors without discrimination. There is currently no legislation establishing geographic Free Trade Zones in Madagascar, though the government hopes to pass such legislation in the next parliamentary session from May-July 2016.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.