Background Image
Previous Page  10 / 36 Next Page
Information
Show Menu
Previous Page 10 / 36 Next Page
Page Background

Summary of corporate

taxation

Economic and legal environment

Official currency:

euro (EUR); Saint-Martin is also, in practice, an area where the US dollar (USD) is used on a daily basis.

Exchange controls, taxation of foreign exchange transactions:

none

Accounting standards:

French accounting standards that have been developed by ANC (

Autorité des Normes

Comptables

), France’s national accounting standards body, and which are characterized by their high level of stability.

Most common structure:

limited liability companies (SA, SAS, SARL... ) governed by commercial law in force in

France.

Tax treaties:

only one agreement has been signed (with the French State); non-implementation of tax treaty agreements

signed by France. However, the tax rules in Saint-Martin enable all or part of the withholding tax applied by source of

income territories to be offset, even in the absence of a tax agreement.

Taxation of company income

Residency:

in principle, companies resident in Saint-Martin are companies that have their head office or effective

management located there. Permanent establishments of foreign entities are also taxable.

Territoriality:

only applies to company income from businesses operated in Saint-Martin; income received outside

Saint-Martin (St. Maarten, countries in America...) is not taxable.

Tax base:

for the fiscal year, taxable income is, in simple terms, equal to the difference between income and

expenditure.

Taxation of dividends:

full exemption subject to a 5% share for fees and expenses, if the investment represents at

least 5% of the subsidiary’s capital or if the cost of participation is equal to at least €1M, regardless of the location of the

subsidiary’s headquarters. The securities must be held for at least one year.

Taxation of capital gains on shareholdings:

exemption providing that the shares are held for a period of at least

two years plus a 5% share for fees and expenses.

Taxation of financial products:

taxation at a rate of 10% of revenue from securities giving access to capital (conver-

tible bonds, bonds with warrants…).

Losses:

can be carried forward to subsequent years indefinitely and for unlimited amounts.

Rate of corporate tax:

– Standard rate of

20%

(fiscal years beginning on or after 1 September 2014).

– Reduced rate for SMEs (turnover of less than €7.63 M):

10%

up to a maximum of €40,000 of taxable income per

twelve-month period.

– Reduced rate:

10%

for net income from the concession or sub-concession of licenses for industrial property rights

(patents, patentable inventions, industrial manufacturing processes, trade marks, industrial designs, copyrights,

rights for the production of objects using 3D printing technology).

– Reduced rate:

10%

for capital gains on the sale of the above, provided they have not been acquired against

payment within the previous two years.

Tax incentives in favor of investment:

in particular, a “tax exemption” scheme for investment programs approved

by the Executive Council of the

Collectivité

of Saint-Martin (system equivalent to a “tax holiday” scheme) and total

exemption from property tax for new commercial premises for a period of five years.

10

BUSINESS TAXATION

DOING BUSINESS IN SAINT-MARTIN