the business services sector on condition that the
companies carry out their main business activity in
Saint-Martin; this condition does not apply to call
IT services sector: IT management and maintenance,
software design, providing internet access, hosting,
creation of on-line services...
concessions and service concessions for local public
services, terminal operating (as part of development
of the commercial port) regardless of the nature of
the goods and their final use;
fishing and agriculture;
other sectors: new energies, including the production
of photovoltaic electricity; building and public sector
personal services sector: hairdressing, body treatments...
research and development sector, namely scientific
and technical research, whether this is basic research,
applied research or experimental development and
regardless of scope;
various other sectors: industry; extraction; crafts.
In contrast, the sectors mentioned below are specifically
excluded from the tax incentives scheme: trade; restaurant
services (with exceptions); cafés, tobacconists and bars;
education, health and social work; banking, finance and
insurance; real estate (including property development,
property dealing activities, leasing activities); cruise
navigation ; business services for companies whose
main business activity is located outside Saint-Martin
(except call centers); leisure, sporting and cultural acti-
vities (other than those directly integrated and a basic
part of a hotel or tourist activity); association activities
and postal activities.
Amount of tax deduction
Tax deduction for direct investment is equal to the cost
of the fixed assets minus the fraction of the cost funded
by a government subsidy.
Fiscal year in which the deduction is
The deduction is made on the results of the year in
which the assets are delivered or completed before
any other rebate or deduction. However, in the case of
acquisition of a building on plan or building construction,
the deduction is applied for the year in which the foun-
dations are completed.
The tax treatment of fiscal deficit follows
of Saint-Martin rules of ordinary law on corporate tax: it
can be carried over to subsequent years indefinitely and
for unlimited amounts, which guarantees exemption from
corporate tax as long as accumulated profits from the
exploitation of investments do not exceed their amount.
Who applies the tax deduction
The deduction is normally applied by the business owner
who actually makes use of the investment.
However, the non-user owner can apply the deduction if
the asset is leased under certain conditions for at least
five years (or for the normal useful life of the asset if this
is lower) to a user company. The owner must surrender
to the user at least 50% of the tax advantage provided
by the deduction applied to their investment and by
offsetting the deficit from the lease of the asset and
the depreciation incurred on disposal of this asset or
securities of the leasing company.
When it comes to leased property, the approval decision
(see § c below) may also provide an exemption for five
years for leasehold rights, for the benefit of the owning
In the case of a property finance lease, it is the lessee
who applies the tax deduction.
When the investment is made through a partnership
(notably an SNC “société en nom collectif”), the deduction
is applied by each member in proportion to their share in
the profit for the year in which the investment is made.
To be entitled to a tax deduction, investments whose
total amount per program per year exceed €500,000,
must have been given prior approval from the Executive
Council of the
JUNE 2014 EDITION
GENEROUS TAX INCENTIVES