Taxes and taxes
The specificities of Saint-Martin
Since July 15, 2007, the French part of Saint-Martin Island has been forming an overseas collectivity under section 74 of the Constitution. On the legal level, its status is governed by Book III of Part VI of the Legislative Part of the general code of territorial authorities.
The collectivity exercises the powers vested in the laws and regulations in force in the municipalities, as well as those vested in the department of Guadeloupe and the region of Guadeloupe. In addition,a number of competencies that are in principle the responsibility of the State have been transferred to the collectivity ; This is the case in particular of tax jurisdiction, since the deliberative assembly of the collectivity, i.e., the territorial council, now sets the applicable rules locally in respect of taxes, duties and taxes.
The Saint-Martin community therefore forms an autonomous tax jurisdiction over the French State; It thus has its own general tax code and its own book of tax procedures.
Scope of tax jurisdiction
Principles
The principle of self-taxing of the collectivity is laid down by 1° of Article LO6314-3 of the General Code of Territorial Communities, which provides:
I.-The collectivity sets the rules applicable in the following matters:
1° Taxes, duties and taxes under the conditions provided for in Article LO 6314-4; cadastre (...)
Limitations
However, tax jurisdiction is not absolute.
The collectivity’s tax jurisdiction only covers the development of the tax standard
The services of the State remain solely responsible for the individual application of the tax, i.e. the count, collection and control of the taxes and taxes established by the deliberative assembly of the community, i.e. the territorial council (CGCT, art. LO6314-4-II).
- II.-Short, control and collection of taxes, duties and taxes and other levies shall be carried out by State officials under the conditions provided for by a convention between the State and the community
The management of the taxation of the collectivity is therefore responsible for the development of the tax standard by deliberation of the territorial council, and the conventions concluded with the State tax and customs administrations regulate the field and the practical modalities of their intervention.
Tax jurisdiction does not cover social levies(CSG, CRDS...) that remain applicable to Saint-Martin under the terms of common law (CGCT, art. LO6314-4-I-3°).
The scope of this restriction was clarified by a notice of the Council of State dated 20 November 2013 (No. 369796) rendered for the application of the dispostions governing the status of the community of Saint-Barthélemy, which are in the same terms as those applicable to Saint-Martin
This convention defines the modalities for the retribution of State agents.(...)
Staff of the collectivity of Saint-Martin, placed under the authority of the state administration, may assist in the execution of the operations referred to in the first paragraph.
- I.- (...)3° The collectivity of Saint-Martin exercises its competence in tax, duties and taxes without prejudice to the rules laid down by the State, for Saint-Martin, in respect of social contributions and other levies intended for the financing of social protection and the dampening of social debt, by analogy with the rules applicable in Guadeloupe.
The State remains competent to establish taxes in the territory of the collectivity to be collected on the occasion of the execution of missions of general interest to it (CGCT, art. LO6314-4-III).
- III.-Without prejudice to the exercise by the collectivity of its jurisdiction in respect of duties and taxes, the State may institute taxes to be collected in connection with the performance of the public interest missions it has in its competence.
The State thus receives the civil aviation tax and the airport tax on flights from Grand Case Airport.
Achieving the quality of “Saint-Martiner tax resident” is not immediate for natural people arriving from a metropolis or overseas department
It is subordinate to these persons for a period of residence of at least five years in the territory of the collectivity (CGCT, art. LO6314-4-I-1° and 1° bis).
- I.-The collectity of Saint-Martin exercises the powers it holds from 1° of I of sectionLO 6314-3 in respect of taxes, duties and taxes in accordance with the following provisions:
- 1° Individuals whose tax domicile was, within five years of their establishment in Saint-Martin, established in a metropolis or overseas department may only be considered to have their tax domicile in Saint-Martin after having resided there for at least five years.
Legal persons whose tax domicile was, within the five years preceding their establishment in Saint-Martin, established in a metropolis or overseas department may only be considered to have their tax domicile in Saint-Martin after they have installed the seat of their effective management for at least five years or when they have installed the seat of their effective management and are controlled, directly or indirectly, by natural persons residing in Saint-Martin for five years; - 1° bis Physical or legal persons with their tax domicile in a department of metropolis or overseas, or being deemed to have it under the 1°, are subject to the impositions in force in these departments.
Without prejudice to the provisions of the preceding paragraph, natural or legal persons having their tax domicile in a department of metropolis or overseas, or being deemed to have it under the 1°, are subject to the taxations defined by the collectivity of Saint-Martin for the income or fortunes found in the territory of that collectivity.
- 1° Individuals whose tax domicile was, within five years of their establishment in Saint-Martin, established in a metropolis or overseas department may only be considered to have their tax domicile in Saint-Martin after having resided there for at least five years.
The legal entities established in Saint-Martin, on the other hand, are immediately subject to the tax applicable in the territory of the community.