Corporate tax is only imposed on profits made in Saint-Martin.The normal rate is 20%while the reduced rate, which
has a very wide scope of application (revenues from industrial property rights, trademarks, copyright...), is set at
just 10%. Dividends are usually almost totally exempt and certain financial products are eligible for reduced rates.
Finally, losses can be carried forward indefinitely and for unlimited amounts.
A narrow-base tax rate
limited to profits made
in Saint-Martin for all types
Corporate tax is calculated only on the profits of businesses
operating in Saint-Martin.
This rule applies generally: it applies equally to foreign
companies that decide to do business in Saint-Martin
through an establishment that does not have a separate
legal identity (e.g. branch) and to foreign companies that
choose to create a subsidiary in Saint-Martin.
In the first instance, the foreign company is taxed as
a company “non-resident in Saint-Martin” on earnings
from business activity in Saint-Martin only. In the second
instance, the subsidiary is taxed as a company “resident
in Saint-Martin” on the same earnings.
Hence, whatever the type of company doing business
in Saint-Martin, only local earnings are taxable.
For the purposes of this rule for example, the following
foreign companies are taxable in Saint-Martin:
the operator of an establishment in Saint-Martin that
does not have a separate legal identity such as a branch,
agency, factory or any other facility of a permanent
nature having its own autonomy
or, failing such an establishment, a representative in
Saint-Martin that does not have a separate professional
legal identity (dependent agent).
Conversely, if the foreign company chooses to set up a
branch in Saint-Martin, the latter is exempt in respect
of profits derived from an establishment outside Saint-
Martin or from the activity of a dependent agent located
SPECIAL CONDITIONS FOR “FRENCH” COMPANIES
A tax treaty between the French State and the
of Saint-Martin signed on 21 December 2010 lays down the
relevant principles. Special rules also exist for companies that
choose to transfer their registered office from a European
or overseas territory of France to Saint-Martin.
Taxable earnings are
Income subject to corporate tax (
Impôt sur les sociétés - IS
is calculated by deducting eligible expenses from income.
Income comprises all of the proceeds from business,
the sale of goods and the provision of services.
Deductible expenses are expenses related to the com-
pany’s business. They include the purchase of goods,
“overheads” (including employee salaries and contribu-
tions, financial expenses, outsourcing and other current
operating expenses, taxes and duties... ), depreciation
In general, in order to be deductible from taxable profits,
overhead costs must be incurred in the interest of the
business, in other words, be related to normal mana-
gement of the business, be regularly recorded and be
supported by adequate documentation. These expenses
are deductible from income in the year in which they
are incurred, regardless of the date of actual payment.
However, special rules apply to certain expenses:
research and development costs: the company can
decide whether operating expenses for scientific or
technical research are immobilized or immediately
DOING BUSINESS IN SAINT-MARTIN