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Madagascar — Orbitax Country Chapters
6.3. Depreciation and Amortization

Fixed assets (except land) are depreciated on the basis of straight line method. Plant and machinery and certain other assets may be depreciated either on declining balance method or at accelerated depreciation rates, subject to certain conditions.

The applicable depreciation rates are as below:

Industrial building 5%
Plant and machinery, office equipment  10%
Mining exploration and development (license) 33%
Transportation (car) 20%
Transportation (utility cars, vans, trucks) 25%
Computers  25%
Electricity generators 10%

Buildings may be depreciated at graduated rates i.e. at 30% of the net book value of the asset. However, if the real property is rented out, the annual depreciation allowance may not exceed 15% of the gross annual rental revenues. For aircraft used for the purposes of the enterprise but not permanently destined for leasing or commercial transportation, the depreciation base is limited to 50% of the acquisition value.

Start-up and prospecting expenses for setting-up a foreign company or cost of running such foreign company (for first 3 years), may be written off in equal instalments over a period of 5 years starting from the fifth year of the establishment of the foreign company.