Employer Tax Contributions

Tax Type	Rate	Base
Social Security Contributions	Approx. 40-45%	Gross Salary (with ceilings for some contributions)
Income Tax Withholding (PAS)	Progressive rates	Employee Salary
Turnover Tax (TGCA)	4%	Sales of goods, all services

Filing & Compliance

• Monthly/Quarterly Social Contribution Payments: Due dates align with DSN filing deadlines (5th or 15th of the following month).
• Monthly Income Tax Withholding (PAS) Payment: Due by the 15th of the following month.
• Annual Income Tax Return (Employee): Employees must file their personal income tax return annually, usually in May or June, covering income from the previous calendar year.

In Saint Martin (French Part), both employers and employees have specific tax obligations and deductions.

Employer Obligations

• Taxe Générale sur le Chiffre d'Affaires (TGCA): This tax, similar to VAT, is levied on most goods and services at a rate of 4%. Deadlines vary based on business type and revenue.

• Social Security Contributions: Employers contribute a significant portion of employee earnings to social security. Rates differ based on business size and include:

  • Health, Maternity, Disability, Death: 13% or 7% of total earnings
  • Autonomy Solidarity Contribution (CSA): 0.3% of total earnings
  • Old-age Insurance (with upper limit): 8.55% up to €3,428
  • Old-age Insurance (no upper limit): 1.9% of total earnings
  • Family Benefits: 5.25% or 3.45% of total earnings
  • Unemployment: 4.05% up to €13,712

Employee Deductions

• Income Tax: Saint Martin employs a progressive income tax system, with rates ranging from 0% to 41%. The tax is calculated annually and deducted directly from paychecks.

• Social Security Contributions:

  • Health, Maternity, Disability, Death: Generally covered by the employer.
  • Old-Age Insurance: 6.9% up to €3,428, 0.4% above this threshold
  • Social Security Surcharge (CSG): 9.2% of gross salary
  • Social Security Debt Reimbursement Contribution (CRDS): 0.5% of gross salary

Tax Incentives

While information on specific employee deductions is limited, Saint Martin offers several tax incentives for businesses, including exemptions from corporate income tax, particularly for those in priority sectors like tourism and export. Eligibility requirements and approval from the Executive Council are necessary.

Additional Information

• Tax Year: The tax year in Saint Martin aligns with the calendar year, running from January 1st to December 31st.
• Payment Deadlines: Social security contributions are usually due monthly, TGCA deadlines vary. Consult official resources for specific schedules.
• Permanent Establishment: This concept is crucial for determining corporate tax liability for companies operating in Saint Martin, referring to a fixed place of business. For TGCA, the concept of a permanent establishment doesn't affect the tax, which is determined by territoriality rules for goods and services.

Please note that as of today's date, February 5, 2025, the provided information is current and may be subject to change due to legislative updates or adjustments in tax regulations. For definitive guidance and the latest details, consult with local tax authorities.