The rules for calculating tax due on income in year 2015 change
The territorial council made significant changes to the calculation of the income tax payable by "non-residents", that is to say, persons not resident in Saint-Martin ( CT21-1bis-2014 of the 20novembre2014).
Thus, for the taxation of income for the year 2015 And subsequent years, the tax on income of non-residents deriving from Saint Martin all or almost all of their income will be calculated on the same terms as those applicable to persons having their fiscal domicile in Saint Martin ( Application of the general scale comprising several tranches subject to different rates which increase gradually according to the importance of income, family quotient, reduction of 40%, access to all tax advantages ...).
Who is affected by these changes?
The persons concerned by this reform are those who fulfill the following two cumulative conditions:
- They do not have their fiscal domicile in Saint-Martin;
- Their total income from Saint-Martin's source is greater than or equal to 75% of their taxable world income.
For example, persons settled in Saint-Martin but whose domicile for tax purposes has been established during any period between 1erjanvier2011 and their arrival in Saint-Martin, in a department of metropolitan France or overseas, Be affected by this reform if they are deemed to have their fiscal domicile in Guadeloupe (non-residents "Less than five years").
In order to assess the threshold of 75%, income from Saint-Martin's sources is defined as income from real estate located in Saint-Martin and income from professional activities, whether employed or not, exercised in Saint-Martin, Including where such activities are carried out within the framework of the civil service of the State.
What is the general scope of these changes?
The non-residents concerned are treated as income tax purposes by persons domiciled in Saint-Martin; They nevertheless remain subject to a tax obligation limited to the taxation of their only income from St. Martin's sources.
What are the consequences of these changes on the amount of tax due?
The amount of income tax for the year 2014 (tax notices sent in September 2015) will not be affected by this reform.
For the taxation of income in 2015 and subsequent years (tax notices distributed in September 2016 for the taxation of 2015 income), the effects of this reform will depend on the situation of the households concerned (level and nature of their incomes, composition The existence of expenses deductible from the total income such as alimony, payment of expenses likely to open right to reduction of tax etc ...).
In particular, some non-residents are currently subject to a minimum tax at the 14,4% rate, which will cease to apply, while others, such as wages and salaries, may see their taxation reduced To a considerable extent in relation to the taxation which would have been theirs had they been taxed as residents.
The simulations show that some households may see their income tax contributions increase compared to the current situation.
The attention of the households concerned is called on the fact that this increase may be wholly or partly neutralized if they From 2015 Of the expenses eligible for one of the many tax reductions provided for by local tax regulations. These tax reductions, now open to non-residents drawing from Saint-Martin at least 75% of their income, are as follows:
- Reduction of tax on contributions paid to trade union organizations (CGISM, Article 199 quater C)
- Reduction of tax on tuition fees for children attending secondary or higher education (CGISM, article 199 quater F)
- Reduction of tax on certain investments made in Saint-Martin (local tax-exemption regime, CGISM, Article 199 undecies D and 199 undecies E)
- Reduction of tax on expenses related to dependency (CGISM, article 199 quindecies)
- Reduction of tax on the employment of an employee at home (CGISM, article 199 sexdecies)
- Reduction of tax on cash compensatory benefits paid in the event of divorce (CGISM, article 199 octodecies)
- Reduction of tax on donations (CGISM, article 200)
- Reduction of tax on certain capital expenditure for the main dwelling (CGISM, Articles 200 quater and 200 quater A)
- Tax reduction for early childhood care expenses (CGISM, Article 200 quater B)
On applicable tax regulations
Taxation of the community
Head of the cluster:
David Girardot Mail: firstname.lastname@example.org
Tel: 05 90 29 56 20
On your personal tax situation (simulations etc ...)
Saint-Martin Tax Service (State services)
Responsible: Horace Cantone, Divisional Public Finance Inspector
Tel: 05 90 87 63 22