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FOREIGN TRADE ZONES/FREE PORTS

Since 1991, Export Processing Zone regulations in Madagascar allow foreign or Malagasy investors to qualify for tax exemptions. EPZ firms can qualify for tax holidays of varying terms, including reduced personal taxes. In January 1999, the Government began applying a 20 percent VAT to imports by EPZ companies of raw materials and component parts. The tax is reimbursed upon proof of export of finished products and is designed to ensure that illegal diversion onto the local market does not occur. EPZ firms may be set up in special zones, or may establish themselves independently.
 

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  Copyright By :  Kish Trade Promotion Center  2002