Summary of corporate
Economic and legal environment
euro (EUR); Saint-Martin is also, in practice, an area where the US dollar (USD) is used on a daily basis.
Exchange controls, taxation of foreign exchange transactions:
French accounting standards that have been developed by ANC (
Autorité des Normes
), France’s national accounting standards body, and which are characterized by their high level of stability.
Most common structure:
limited liability companies (SA, SAS, SARL... ) governed by commercial law in force in
only one agreement has been signed (with the French State); non-implementation of tax treaty agreements
signed by France. However, the tax rules in Saint-Martin enable all or part of the withholding tax applied by source of
income territories to be offset, even in the absence of a tax agreement.
Taxation of company income
in principle, companies resident in Saint-Martin are companies that have their head office or effective
management located there. Permanent establishments of foreign entities are also taxable.
only applies to company income from businesses operated in Saint-Martin; income received outside
Saint-Martin (St. Maarten, countries in America...) is not taxable.
for the fiscal year, taxable income is, in simple terms, equal to the difference between income and
Taxation of dividends:
full exemption subject to a 5% share for fees and expenses, if the investment represents at
least 5% of the subsidiary’s capital or if the cost of participation is equal to at least €1M, regardless of the location of the
subsidiary’s headquarters. The securities must be held for at least one year.
Taxation of capital gains on shareholdings:
exemption providing that the shares are held for a period of at least
two years plus a 5% share for fees and expenses.
Taxation of financial products:
taxation at a rate of 10% of revenue from securities giving access to capital (conver-
tible bonds, bonds with warrants…).
can be carried forward to subsequent years indefinitely and for unlimited amounts.
Rate of corporate tax:
– Standard rate of
(fiscal years beginning on or after 1 September 2014).
– Reduced rate for SMEs (turnover of less than €7.63 M):
up to a maximum of €40,000 of taxable income per
– Reduced rate:
for net income from the concession or sub-concession of licenses for industrial property rights
(patents, patentable inventions, industrial manufacturing processes, trade marks, industrial designs, copyrights,
rights for the production of objects using 3D printing technology).
– Reduced rate:
for capital gains on the sale of the above, provided they have not been acquired against
payment within the previous two years.
Tax incentives in favor of investment:
in particular, a “tax exemption” scheme for investment programs approved
by the Executive Council of the
of Saint-Martin (system equivalent to a “tax holiday” scheme) and total
exemption from property tax for new commercial premises for a period of five years.
DOING BUSINESS IN SAINT-MARTIN