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3.

Special exemption scheme

for expatriate employees

The tax regime for expatriates is open to any person

resident for tax purposes in Saint-Martin, regardless of

nationality, coming to work in Saint-Martin and who has

not been a tax resident in Saint-Martin during the five

calendar years prior to taking up their position.

The person must have been called to work in a company

in Saint-Martin (regardless of the nationality of the host

company). To immediately benefit from this exemption,

the person must fix their tax residence in Saint-Martin

by 31 December of the year following the year they take

up their position (i.e. no later than 31 December 2016,

for a position taken up in Saint-Martin during 2015).

This exemption scheme for expatriates applies for up

to five years starting from the year following the year

they take up their position.

Expatriates benefit from tax exemption:

uu

firstly, on any addition to remuneration directly related

to the exercise of their professional activity in Saint-

Martin (expatriation bonus) for the actual amount or,

as an option and only for persons directly recruited

abroad, for a fixed amount corresponding to 30% of

the total net pay;

uu

secondly, the fraction of compensation (base salary and

potentially supplements to earnings) corresponding to

activity carried out abroad, if any, provided that trips

abroad are in the direct interest and for the exclusive

benefit of the employer.

Exemptions are capped at 50% of total remuneration.

Working example

A skilled employee, employed by a

company based in the United States is

seconded by his employer to a company

based in Saint-Martin with effect from 1

January 2016. They regularly travel abroad

for professional reasons.

Their net annual remuneration for 2016

is

€200,000

including an “expatriation

bonus” of

€60,000

;

Their remuneration related to work

carried out abroad amounts to

€33,000

.

The following are exempt from income

tax for the year 2016:

uu

the “expatriation bonus” (€60,000);

uu

the remuneration corresponding to work

carried out abroad (€33,000).

Total exemption:

€93,000

.

This amount being less than 50% of

total remuneration, which is

€100,000

(200,000 x 50%), the amount exempt is

not capped.

29

MARCH 2015 EDITION

TAX INCENTIVES FOR YOUR EMPLOYEES