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Tax-free repatriation
of profits
In Saint-Martin, the very favorable corporate tax regime is combined with a series of specific
provisions guaranteeing that companies can repatriate their profits tax-free.
1.
No withholding tax
on dividends
No withholding tax is applied by the
Collectivité
of Saint-
Martin on
dividends
distributed by a company esta-
blished in Saint-Martin to associates, legal entities or
persons, resident for tax purposes outside Saint-Martin.
2.
No withholding tax
on interest
No withholding tax is applied by the
Collectivité
of Saint-
Martin
on interest
paid by a company established in
Saint-Martin to associates,
legal entities or persons,
resident for tax purposes outside Saint-Martin.
3.
No withholding tax
on certain incomes paid
to beneficiaries that do not
have a permanent business
base in Saint-Martin
No withholding tax is applied to:
uu
sums paid as compensation for an activity carried
out in Saint-Martin for non-commercial professions
(lawyers, architects, auditors... );
uu
revenues received by inventors or from copyrights;
uu
revenues from industrial or commercial property and
similar rights;
uu
sums paid as compensation for services of any kind
provided in Saint-Martin (repair or maintenance of a
building located in Saint-Martin, technical incentives
in Saint-Martin, studies carried out in Saint-Martin... )
or used in Saint-Martin (rental of equipment effectively
used in Saint-Martin... );
uu
sums, including salaries, corresponding to artistic or
sporting services provided or used in Saint-Martin.
4.
No real tax barrier to the
invoicing of interest, royalties
or management fees
The amounts invoiced by a foreign company to its sub-
sidiary located in Saint-Martin are simply required to
be justified and in line with rates charged under normal
management conditions between independent companies.
The authorities of Saint-Martin may require evidence
that transfer prices are in line with actual market prices.
19
MARCH 2015 EDITION
DOING BUSINESS IN SAINT-MARTIN