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Very low license fee and

“contribution des patentes”

that favor business

start-ups

The license fee (

droit de licence

) and

contribution des patentes

(local tax) are payable each year

by companies that carry out a regular business activity in Saint-Martin.

1.

Taxable entities and activities

Subject to certain exemptions that have a limited scope,

the license fee and

contribution des patentes

are payable

each year by individuals or legal entities that regularly

carry on a non-salaried business activity in Saint-Martin.

2.

License fee base and tariff

The license fee is made up of two elements:

uu

a fixed fee, generally €300 per company;

uu

a variable fee linked to the surface area of premises

used for the business activity (€5 per square meter,

beyond an area of 40 m²).

The total amount of variable duty linked to the surface

area of business premises used by a single taxpayer in

respect of the same activity is capped at €2,500.

3.

“Contribution des patentes”

base

For companies subject to corporate tax, the base for

the

contribution des patentes

is equal to:

uu

for companies in general (subject to cases indicated

below):

13%of the cost of equipment andmoveable

assets

(furniture, vehicles, computers... )

uu

for companies exercising a “non-commercial“ activity

u

The maximum amount of license fee is therefore

€2,800 / year.

(medical sector, lawyers, accountants, auditors, archi-

tects, consulting engineers, software designers, sur-

veyors...):

5% of revenue.

4.

Calculation of the tax

The rate of

contribution des patentes

is voted annually

by the Territorial Council. Since the introduction of this

contribution, the rate has remained unchanged at

25.76%

.

5.

Cap and deductions

A cap on

contribution des patentes

, set at 3% of the

value added produced in the previous year, may be

requested by the company.

u

IMPORTANT

The

contribution des patentes

is hence in no way dependent

on the value of the premises used for business purposes,

which considerably limits the amount for the operators of

tourist residences or hotels.

u

SPECIAL MEASURES FOR NEW BUSINESSES

Companies set up during the year are normally not subject

to this tax for the year of their creation.

“New” companies also benefit from

total exemption in

the year following their creation and a deduction of

50% in the second year following their creation.

24

BUSINESS TAXATION

DOING BUSINESS IN SAINT-MARTIN