Employer Tax Contributions

Tax Type	Rate (Approx.)	Base
Health Insurance (CAFAT)	10.5%	Gross Salary
Retirement	8.5%	Gross Salary
Family Benefits	5.5%	Gross Salary
Unemployment Insurance	2.5%	Gross Salary

Filing & Compliance

• Social security declarations and payments are typically due monthly or quarterly.
• Employers must provide annual income summaries to employees and the tax administration, typically by January or February.
• Companies typically file corporate income tax returns four months after the fiscal year end.

In New Caledonia, employers deduct taxes from employee salaries, encompassing social security contributions and income tax, impacting an employee's net pay.

Employer Responsibilities

• Social Charges: Employers pay social security contributions (Ruamm) covering healthcare, retirement, family benefits, work-related accidents/illnesses, and unemployment. Rates vary and comprise both employer and employee portions.
• Skills Development Fund (CFP): Employers with payrolls exceeding a certain amount contribute 0.8% or 1% of their payroll to this fund.
• Additional Contributions: Collective bargaining agreements may require additional contributions for supplementary retirement.
• Payment Deadlines: Social security contributions are usually due monthly or quarterly, depending on the due amount.
• Compliance: Staying updated on current rates and regulations is crucial, as non-compliance results in penalties. Consulting local payroll providers or tax advisors is recommended.

Employee Deductions

• Ruamm Deduction: This covers mandatory social security contributions (healthcare, disability, retirement, and family benefits), with rates based on salary levels.
• Other Allowable Deductions: Limited deductions may apply in specific circumstances, like alimony, charitable donations, and some work-related expenses.
• Income Tax: New Caledonia's income tax system uses a progressive tax system consisting of eight tax brackets. The top marginal tax rate is 45% for annual income exceeding XPF 12 million (approximately USD 106,080). Tax exemptions exist for overtime pay and exceptional bonuses until December 31, 2026. A 20% general rebate applies to salaries not exceeding XPF 9 million. Additional income tax reform measures may be introduced in 2025, pending legislative changes.
• Employment Expenses Deduction: Employees can deduct the higher of actual expenses or 10% of the balance (minimum XPF 50,000, maximum XPF 800,000).

Additional Considerations

• Tax Year: The tax year in New Caledonia aligns with the calendar year (January 1 to December 31).
• Tax Returns: Employees file annual tax returns by a specified deadline.

It is important to consult with local tax professionals for the most up-to-date information and to ensure compliance with New Caledonian tax laws, as this information is current as of February 5, 2025, and is subject to change.