In Saint Martin, employers have several tax responsibilities. One of these is the Taxe Générale sur le Chiffre d'Affaires (TGCA), which is similar to a Value-Added Tax (VAT), but with a much lower rate. It is applied to the retail sale of goods and services at a rate of 4%.

Social Security Contributions

Employers in Saint Martin are also responsible for a significant portion of social security contributions. These include:

• Health, Maternity, Disability, Death: 13% or 7% of total earnings depending on business size.
• Autonomy Solidarity Contribution (CSA): 0.3% of total earnings
• Old-age Insurance (with upper limit): 8.55% of EUR 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% of EUR 13,712

Payment Deadlines

The deadlines for these payments can vary. For TGCA, deadlines can vary depending on the nature of your business and revenue. For social security contributions, they are typically due on a monthly basis. It is recommended to consult the Collectivity's tax office and official social security websites for specific payment schedules.

In Saint Martin (French Part), the progressive income tax is based on an individual's earnings. All residents who earn income are eligible for this tax. The tax rates are progressive, with higher income brackets subject to higher rates. Income tax is calculated on a yearly basis and deducted directly from employee paychecks.

Social Security Contributions

Employees contribute to several social security funds, including Health Insurance, Old-Age Pension, Disability Insurance, and Unemployment Insurance. All salaried employees are eligible for these contributions. Contribution rates are percentages of an employee's gross salary.

Additional Deductions

The Professional Tax (Contribution Professionelle) is a tax based on factors like company size and location. Contribution rates will vary.

In Saint Martin (French Part), instead of a traditional Value-Added Tax (VAT) system, the Taxe Générale sur le Chiffre d'Affaires (TGCA) is used. This is a turnover tax with similarities to VAT and applies to the sale of most goods and services.

TGCA Rate

The standard TGCA rate is 4%, which is significantly lower than VAT rates found in most European countries.

Exemptions

While the TGCA has broad coverage, certain services may be exempt. Exemptions and special categories can be found on the official tax website for Saint Martin.

Filing Procedures

The frequency of filing for TGCA depends on your business size and revenue. It is advisable to consult directly with the Collectivity's tax authorities for the filing schedule applicable to your company. Information and forms for TGCA filing are available on the Saint Martin tax website.

Tax incentives can be a significant advantage for businesses, and they come in various forms. One of the primary incentives is a scheme similar to a tax holiday, exempting businesses from corporate income tax. To qualify, companies must engage in priority sectors, typically including tourism, industry, and export-oriented businesses. Investment level thresholds may apply, and approval from the Executive Council of the Collectivity of Saint-Martin is necessary.

Reduced Corporate Tax Rate

Another form of tax incentive is a reduced corporate tax rate. A reduced corporate tax rate of 10% applies to income from sources such as industrial property rights, trademarks, and copyrights. This incentive is open to qualifying types of income streams.

Property Tax Exemption

New commercial premises may be eligible for a five-year exemption from property tax. This incentive may require alignment with the broader "tax exemption" incentive program.

Application Process

Applications for tax incentives are likely handled through the Collectivity of Saint Martin's economic development or investment promotion agencies. Detailed information should be available on the official government website of Saint Martin.