Employers in Mayotte, a French overseas department, are responsible for a significant portion of social security contributions. These contributions include health insurance, family allowances, pension, occupational accidents and illness, and unemployment insurance.

Health Insurance

Employers contribute to the health insurance of their employees. Contribution rates vary based on income levels and other factors.

Family Allowances

Employers contribute towards family allowances provided to employees.

Pension

Employers contribute significantly to employee pension schemes.

Occupational Accidents and Illness

Employers pay contributions to cover costs related to work-related accidents or illnesses.

Unemployment Insurance

Employers contribute to unemployment insurance funds.

In addition to these, employers might also be required to contribute to complementary retirement plans for their employees, partially reimburse employee transportation costs, and contribute to taxes supporting apprenticeship and professional training programs for businesses over a specific size.

Calculating Employer Contributions

Employer contributions in Mayotte are generally calculated as a percentage of an employee's gross salary. These percentages can be complex and vary depending on the specific type of contribution, the employer's industry, and other factors.

Reporting and Payment

Employers must declare and pay social security and other contributions to the relevant collection agency, typically the URSSAF (Unions de Recouvrement pour la Sécurité Sociale et les Allocations Familiales). Deadlines and payment processes are dictated by French regulations.

In Mayotte, the income tax model is based on the French progressive tax system, where tax rates are determined by income levels. Income tax is directly deducted from employees' salaries by their employers under the Pay-As-You-Earn (PAYE) system.

Progressive Tax System

The progressive tax system in Mayotte follows the French income tax model. The tax brackets and rates are updated regularly.

Withholding at Source

Under the PAYE system, income tax is directly deducted from the employees' salaries by their employers.

Social Security Contributions

Employees in Mayotte contribute a portion of their salaries to various social security funds. These include:

Health Insurance

Employees contribute to health insurance for coverage of medical expenses.

Pension

Contributions are made towards the employee's pension plan.

Unemployment Insurance

Contributions are set aside to fund unemployment benefits.

CSG (Contribution Sociale Généralisée)

Employees contribute a percentage of their income to the CSG, a broad-based social contribution tax.

CRDS (Contribution pour le Remboursement de la Dette Sociale)

A smaller contribution is levied to aid in the reimbursement of social security debt.

Calculation of Deductions

The percentage withheld for social security contributions and income tax is determined based on an employee's gross salary and other individual factors.

Reporting and Payment

Employers are responsible for calculating, deducting, and remitting employee income tax and social security contributions to the relevant collection agencies on behalf of their employees.

In Mayotte, an overseas department of France, the VAT system primarily follows French regulations, but with some unique distinctions.

VAT Rates

The standard VAT rate in Mayotte is 8.5%, which is significantly lower than mainland France. Certain essential services may be subject to reduced VAT rates, typically 2.1%. Some services, like healthcare and certain financial services, might be exempt from VAT.

VAT Registration

The registration thresholds for VAT in Mayotte may differ from those in mainland France. Businesses must register if their turnover exceeds specific limits. Companies below the thresholds may opt for voluntary VAT registration in certain cases.

VAT on Imported Services

VAT on services imported from outside of the European Union may be levied under the reverse charge mechanism. This means the service recipient in Mayotte is responsible for accounting for the VAT due, rather than the foreign service supplier.

Invoicing Requirements

VAT-registered businesses must issue VAT invoices compliant with French regulations for all taxable supplies of services. These invoices must contain specific details.

VAT Return Filing and Payment

VAT returns must be filed periodically, the frequency depending on a company's turnover. VAT payments are due along with the filing of returns.

Specific Considerations for Services

The rules for determining where a service is deemed to be supplied for VAT purposes can be complex, impacting where the VAT is due. Specific VAT rules may apply to electronic services provided to consumers in Mayotte.

Mayotte offers a variety of tax incentives to stimulate business growth and investment. One such incentive is the reduced corporate income tax (CIT) rate, which may be lower than mainland France in certain cases. Newly established companies in priority sectors might also benefit from an initial period of income tax exemption. Additionally, businesses may be eligible for accelerated depreciation allowances on qualifying capital assets, reducing their taxable income.

Sector-Specific Incentives

Tax incentives are available to encourage investment and development in various sectors. For instance, the agriculture and fisheries sectors have specific tax incentives. Businesses within the tourism industry may qualify for tax holidays, reduced rates, and specific exemptions designed to promote the sector's growth. Small enterprises and businesses engaged in traditional crafts and industries may also be eligible for tax benefits.

Regional Development Incentives

The LODEOM exemption provides substantial relief from employer social security contributions in Mayotte, significantly reducing labor costs for businesses. Businesses in designated priority development zones may be eligible for corporate tax exemptions, reduced social contributions, and other fiscal benefits under the Zone Franche d'Activité (ZFA) scheme.

European Union Funding

Businesses in Mayotte may have access to funding programs and development grants provided by the European Union as an outermost region.

Additional Considerations

France has a specific tax credit for investment in its overseas territories, including Mayotte. Mayotte may also offer localized tax incentives for certain activities. It's recommended to check with local economic development agencies about such programs.