for investors equivalent
to a “tax holiday” scheme
Companies subject to corporate tax that are resident in the
of Saint-Martin, may deduct from their
taxable income the amount of productive investments they carry out in Saint-Martin in priority economic sectors
as well as any investments in the capital of certain companies.
The deduction is made on taxable income and in this way, as appropriate, reduces the amount of taxable income
for the year, or creates or increases the company’s losses. Since the tax treatment of losses follows the rules of
ordinary law of the
of Saint-Martin, the losses created or increased by the tax deduction can be carried
forward to subsequent years
indefinitely and for unlimited amounts.
The result is that the tax deduction mechanism for investment is comparable to other tax investment incentives
that apply particularly in the Caribbean region (“tax holiday”) where the company having made the investment
only actually becomes taxable on its profits once the aggregate amount thereof exceeds the amount of the
This system applies to investment and equity investments carried out up to
31 December 2020.
Tax Deduction for direct
Types of investment
Only new productive investments qualify for tax incen-
tives, in other words, the acquisition or creation of new,
tangible and depreciable assets. These investments must
of course be used in Saint-Martin.
Notwithstanding this rule, any software required for the
use of these eligible investments forming an integral
element of those assets can benefit from the scheme.
The same applies for the sites of buildings and sites
for outbuildings that are essential and contingent to
Finally, works related to the renovation or rehabilitation
of classified hotels, holiday residences or holiday vil-
lages that form part of the assets, are also eligible for
tax incentives. This includes in particular all expenses
relating to the cost of those works (demolition costs,
construction costs and fitting out).
Eligible sectors of activity
To qualify for tax incentives, the above productive invest-
ments must be made in certain sectors, notably:
the hospitality sector;
the tourism sector:
leisure activities: equipment for tourist sites, nautical
centers, beach or sports centers...;
tourist accommodation: creation of tourist residences;
tourist services: organizing trips or tours, car and
pleasure boat rental, restaurant services (under cer-
the transport sector, including auxiliary transport ser-
vices (port and airport handling activities, particularly
the film and audiovisual production and distribution
DOING BUSINESS IN SAINT-MARTIN