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Tax incentives

for your employees

that are tax resident

in Saint-Martin

As a general rule, taxpayers domiciled in the

Collectivité

of Saint-Martin are taxed on the basis of a comprehensive

income equal to the sum of their “worldwide” revenue regardless of its territorial source. A tax credit enables

any potential double taxation to be offset.

Taxpayers that are not resident in the

Collectivité

are not however subject to unlimited tax liability. They only

pay income tax, according to a special scheme, on their revenue from sources located in the

Collectivité

.

A special scheme exists for employees coming from abroad to work in Saint-Martin.

1.

Determining tax residency

Are considered to be resident for tax purposes in

Saint-Martin:

a.

persons who have their household or principal place

of residence in Saint-Martin;

b.

persons engaged in a professional activity, salaried

or otherwise,

in Saint-Martin, unless they can show

that this activity is carried out on a secondary basis;

c.

persons who have the center of their economic inte-

rests in Saint-Martin.

There exists a hierarchy between the personal criteria

stated in (a) above: the taxpayer who can establish

that they have their household in a place other than

the territory of the

Collectivité

cannot be considered

to have tax residency in Saint-Martin based only on the

criteria of principle place of residence. For the purposes

of these personal criteria, the household is essentially

the primary of place of residence of the taxpayer, or

that of their spouse or children. The principle place of

residence is where the taxpayer resides for more than

183 days in the year.

Personal criteria, professional criteria (b) and economic

criteria (c) apply alternately. A person who has neither

household nor principle place of residence in Saint-Martin,

would still be considered tax resident in Saint-Martin if

they exercised their main occupation there, salaried or

otherwise, or if this was the center of their economic

interests, meaning the place where they carry out their

business, or make their main investments, or where

most of their revenue is generated.

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SPECIAL CONDITIONS FOR PERSONS PREVIOUSLY

RESIDENT FOR TAX PURPOSES IN FRANCE

Individuals whose residence for tax purposes was, during

the five years prior to their establishment in Saint-Martin,

in a department of France or its overseas territories can

only be considered as having their tax residence in Saint-

Martin once they have resided there for at least five years

(CGCT, art. LO6314-4).

Persons having their tax residence in Saint-Martin are

taxed on all their income from Saint-Martin and from

foreign sources.

If foreign source income is taxed in the country

of origin, double taxation is avoided by applying a

specific tax credit.

26

BUSINESS TAXATION

DOING BUSINESS IN SAINT-MARTIN