For more complete information, you can consult the Documentation section Regulation and downloads (forms and records)
The purpose of this booklet is to help new entrepreneurs understand the taxes to which they will be subject and their tax obligations.
Download version 09/29/2023
Property taxes on built and unbuilt properties are due by the owners or usufructuary. However, certain exemptions are provided. These exemptions may be linked to the property or the person owning it.
The general tax on household waste, intended to finance the collection of household waste, is backed by the property tax on private properties.
For each property, the cadastral service determines a cadastral rental value and then applies a reduction the annual cadastral income.
To this cadastral income are applied the tax rates corresponding to the type of property. Since 2011, the tax rates for property taxes on built and unbuilt properties and the household waste management tax, although voted annually, is unchanged.
The rates applicable to built properties are as follows:
Property tax on built properties: 47.30%
Household waste management tax: 14.70%
For land, the applicable rate is as follows:
Property tax on unbuilt properties: 121.58%
The land service (fiscal department) for any questions related to the tax base or the cadastral plan: cadastre.saint-martin@dgfip.finances.gouv.fr
Tax collection department individual treasury service of the Saint-Martin tax office for any payment-related questions.
The value added tax (TVA) system existing within the European Union is not applicable to Saint-Martin.
However, a turnover tax called "general turnover tax" (TGCA), at the rate of 4%, applies in practice to sales in detail of goods as well as all services.
This tax uses concepts close to those governing VAT with regard to its scope of application, the definition of taxable persons, the rules governing its generating event and its liability as well as the rules of territoriality. It also presents similarities with the "turnover tax" collected at a rate of 5% in the dutch territory of Sint-Maarten.
This tax is neutral for companies regarding retail sales (which are the only taxable ones). In fact, companies only collect it from their customers and pass it on to the community's public accountant.
The same applies to services billed to individuals. On the other hand, companies which use service providers (accountants, telephone operators, subcontractors...) or that acquire fixed assets bear the TGCA invoiced by their suppliers. The latter is not attributable to the TGCA collected but is only deductible from taxable results (in the form of a charge or depreciation allowance).
Legal basis
Saint-Martin General Tax Code : articles 250 and following
Deliveries of goods to Saint-Martin
The place of delivery of tangible movable property is deemed to be in Saint-Martin when the property is in Saint-Martin. The tax administration may ask persons established outside Saint-Martin and who carry out deliveries of taxable goods for payement in the territory of the collectivity to accredit, with the tax administration, a representative domiciled in Saint-Martin, who undertakes to fulfill the formalities to which those subject to the turnover tax are subject and to pay the amount of the tax as well as, where applicable, the related penalties (article 252 I of the general tax code of Saint-Martin or CGISM).
Services provided in Saint-Martin
The place of provision of services is deemed to be in Saint-Martin once the service is used there, regardless of the place of establishment of the service provider (article 252 II of the SMTC). The tax administration may ask people established outside Saint-Martin and who provide services for payment in the territory of the collectivity, to accredit, through the tax office, a representative domiciled in Saint-Martin. This person will undertake the tasks of completing the formalities required of those subject to the turnover tax. The prepresentative will also pay the amount of the tax as well as, when applicable, the related penalties.
Bank guarantee
The tax administration may ask taxable persons who are not established in a member state of the European Union to take out a bank guarantee.
This regime was defined by the deliberation CT 12-04-2018 of May 15, 2018 .
Management of reporting obligations and control: Fiscal department of the Saint-Martin tax office
Payment : Tax collection deparment of the Saint-Martin tax office
Interpretation of the tax law : Tax Department of the collecvity of Saint-Martin
Corporate tax (IS) relates to profits made by companies operating in Saint-Martin, as well as those whose taxation is attributed e to the community of Saint-Martin by a tax convention.
It is inspired by the national corporate tax, and has therefore integrated the provisions of the parent-daughter regime on dividends, the special regime of mergers or even tax integration.
The Saint-Martin taxe code (articles 205 et seq.) also provides for a certain number of exemptions, reductions and tax credits. Deficits can be carried forward to subsequent financial years without limitation, and can also be carried back (“carry-back”).
Companies must submit a tax return each year and declare their taxable income.
Payment is made through quarterly installments and final liquidation no later than the 15th of the fourth month following the end of the financial year.
Companies newly created or newly subject to corporate tax are exempt from payment of installments during their first financial year of activity or their first tax period.
Two tax regimes are applicable:
The simplified scheme tax
This real regime, which includes reduced obligations, was established with regard to the taxation of industrial and commercial profits for small and medium-sized businesses, by Article 302 septies A bis of the Saint-Martin tax code (SMTC).
It is reserved:
a. Optionally, to micro-enterprises normally placed under the regime defined in article 50-0;
b. To other companies whose turnover, adjusted if necessary in proportion to the operating time during the calendar year, does not exceed €810,000 , if they are businesses whose main business is to sell goods, objects, supplies and foodstuffs to be taken away or consumed on site or to provide accommodation, or €243,000, if these are other companies.
Companies retain the benefit of these provisions for the first year during which the turnover limit set in the first paragraph is exceeded, except in the event of a change of activity.
The real normal scheme tax
The normal real regime referred to in article 53 A of the CGISM applies by law:
The reduced tax rate is set at 10% within the limit of an annual profit of €40,000.
The normal rate is set at 20%.
Long-term capital gains fall under a specific tax regime.
Management of declarative obligations and control: Fiscal department of the Saint-Martin tax office.
Payment : Tax collection department of the Saint-Martin tax office.
Interpretation of the tax legislation: Tax department of the collectivity of Saint-Martin.
The license fee and the patent contribution are two related taxes and are the subject of a joint declaration.
The license fee
The license fee ( articles 1447-0A et seq. of the SMTC) is in principle due each year by natural or legal persons who habitually exercise, in Saint-Martin, a self-employed professional activity.
The license fee consists of a fixed fee and an index fee. For the financing of the Interprofessional Consular Chamber of Saint-Martin, an additional fee to the fixed fee is added to the aforementioned fees, as well as an additional fee to the index license fee.
Contribution of patents
The contribution of patents ( articles 1447-0A et seq. of the CGIsm) is in principle due each year by natural or legal persons who habitually exercise, in Saint-Martin, a self-employed professional activity.
Exemption :
Taxpayers other than those carrying out an activity falling under the BNC are exempt from payment of the business license contribution when their annual turnover, during the year N-1, does not exceed not €82,600 (sales or housing supply activities) or €33,100 (other activities).
SMTC = Saint-Martin Tax code.
License fee
License fee Strictly speaking (sum of the two components):
Additional rights for the benefit of the CCI of Saint-Martin:
Contribution of patents
Depending on the nature of the activity, the contribution of patents is based on:
Tax Rate: 23,64% of the base
Details: financing of the CCISM
For the financing of the Interprofessional Consular Chamber of Saint-Martin, an additional tax at the rate of 2.81% is added to the amount of the contribution.
Submission of the declaration and payment of a deposit of 50% of the patent contribution no later than June 30 of the tax year.
Payment of the balance no later than the following November 30.
Gestion des obligations déclaratives et contrôle : Pôle fiscal du Centre des Finances Publiques
Paiement : Pôle recouvrement de la trésorerie
Interprétation de la norme fiscale : Direction de la fiscalité de la collectivité
In short, the lease fee applies to owners of one or more properties (land, villa, apartment, commercial premises, etc.) located on Saint-Martin and rented out for a long period (more than 90 days).
Subject to certain exemptions designed to avoid overlapping with the turnover tax (applicable to tourist accommodation services provided to persons residing in Saint-Martin for less than 90 days of the year) and to exclude rentals granted for an annual rent of €2,400 or less, leasehold duty is payable each year, before December 31 N, and is equal to 3% of rents collected during the tax period running from October 1 of year N-1 to September 30 of year N.
Legal basis
General code of the community of Saint-Martin: section 736
Tax base
The basis of the lease fee is equal to the amount of rent collected during the tax period.
It corresponds :
Practical rule : in the event of rental of accommodation, the lease fee is therefore, in general cases, calculated on all the sums paid by the tenant (excluding reimbursement of charges rental property recoverable by the owner).
Rate
The rental tax rate is set at 3%.
The taxpayers, or their representative, declare each year (N), on the form, the amount of rent collected during the tax period (from 01/10/ N-1 to 30/09/N) and pay the tax due.
This declaration, accompanied by payment of the tax due, is sent no later than December 31 of year N to the treasury of Saint-Martin.
The tax must be paid by bank check or transfer.
Gestion des obligations déclaratives : Service fiscal de Saint-Martin
Paiement : Trésorerie de Saint-Martin
Interprétation de la règle fiscale : Direction de la fiscalité de la Collectivité
As a whole, the tax rules applicable to Saint-Martin are based on a structure close to the registration fees regime as provided for by the national tax law .
The legal and regulatory requirements provided for in matters of civil law or company law continue to fall exclusively within the jurisdiction of the authorities of France.
NOTA BENE: temporary measures of exemption or reduction of registration fees may apply .
The formalities of registration and land advertising are merged for buildings located in Saint-Martin.
The rules applicable to transfers for consideration of real estate or real estate rights located in Saint-Martin can be summarized as follows:
-the formality of registration is carried out with the tax service of the community of Saint-Martin based on an extract of the act, drawn up in quadruple copies, supplemented by a draft liquidation plan, details of the fees payable and, where applicable, the information provided for in III of article 150 VG of the SMTC. Payment of registration fees takes place on this occasion;
- the land advertising formality is then carried out with the land advertising service of Basse-Terre (Guadeloupe) according to the same terms and conditions as for properties located in France, it being specified that the two extracts of acts produced on this occasion must imperatively include the receipt of the registration. The real estate security contribution due to the state is paid upon completion of this formality.
The deadline for completing the registration formality is set at one month from the date of the act.
Base of the land advertising tax : same as national rules.
Registration fee rates : 8%. The proceeds of this tax are collected for the exclusive benefit of the community of Saint-Martin.
The real estate security contribution (which applies under the same conditions as at the national level) continues to be collected by the State upon completion of the property advertising formality. No other taxes are collected.
For the record, real estate VAT is not applicable to Saint-Martin.
Registration rights specifically applicable to operations carried out by companies are governed by the following rules:
o Scope of application of the registration obligation : same as national legislation, in particular acts recording the formation, extension, transformation or dissolution of a company (civil or commercial), increase, depreciation or reduction of its capital (CGISM, art. 635-1 -5°).
o Deadline : one month from the date of the act.
o Formalities : the merged formality is not applicable to Saint-Martin. When the acts concern buildings, the registration formality must be carried out locally and prior to the land registration formality.
o Territorial scope : rules different from national rules (CGISM, art. 650 at 653).
Notaries whose residence is located in Saint-Martin have their acts registered with the tax service of the community of Saint-Martin.
For other deeds, that is to say, deeds under private signatures, authentic deeds executed by notaries whose residence is located outside Saint-Martin and authentic deeds executed If abroad, registration takes place at the tax department of the community of Saint-Martin in the following cases:
a) they transfer ownership, usufruct or enjoyment of business or clientele located in Saint-Martin;
b) they transfer a right to a lease or the benefit of a promise of lease concerning all or part of a building located in Saint-Martin;
c) they note the formation, extension, transformation or dissolution of a company or an economic interest group whose statutory headquarters or headquarters effective management is located in Saint-Martin or the increase, depreciation or reduction of their capital.
Accuracy : the tax Convention signed between the state and the community does not cover registration fees.
Registration fees specifically applicable to transfers of corporate rights are governed by the following rules:
o Scope of application of the registration obligation : defined by the article 635 -2-7° and 7°bis of the Saint-Martin tax code (CGISM), this field is similar to that defined in national law.
o Deadline : one month from the date of the deed.
o Formality : “autonomous” formality of registration.
o Territorial scope : rules are different than national rules (CGISM, art. 650 at 653).
Notaries whose residence is ocated in Saint-Martin have their acts registered with the tax office of the collectivity of Saint-Martin.
For other deeds such as deeds under private signatures, authentic deeds executed by notaries whose residence is located outside Saint-Martin and authentic deeds executed If abroad, registration takes place at the tax department of the collectivity of Saint-Martin in the following cases:
a) They record the transfer of shares, founders' shares, profit shares or shares of companies whose capital is not divided into shares, when these securities are issued by a legal entity having its statutory headquarters or effective management headquarters in Saint-Martin;
b) They note the transfer of interests in legal entities primarily in real estate within the meaning of the third paragraph of 2° of I of the article 726 of the CGISM.
Accuracy : the tax convention signed between the state and the collectivity does not cover registration fees.
Essentially, the rules governing inheritance and gift taxes are very close to the rules that were in force at the national level on January 1, 2008. They are defined by the articles 750 ter and following of the Saint-Martin tax code (CGISM).
o Territoriality : “symmetrical” rules to national provisions (CGISM, art.750 ter). If the deceased was domiciled in Saint-Martin, all their movable and immovable property are taxable in Saint-Martin, whatever their nature and situation and whatever the domiciliation of the beneficiary. Double taxation is avoided by the imputation of duties paid abroad (or for the benefit of the State) on movable and immovable property located outside Saint -Martin.
In the case where the deceased was domiciled outside Saint-Martin, the territorial scope of inheritance tax depends on the tax domicile of the beneficiary:
- movable and immovable property located in Saint-Martin or outside Saint-Martin is taxable if the beneficiary is domiciled in Saint-Martin on the day of transmission and has been there during at least six years in the last ten years;
- only movable and immovable property located in Saint-Martin is taxable when the beneficiary is domiciled outside Saint-Martin (or if he does not meet the above duration condition toothed).
o Basis of rights : inheritance tax is based on an estimated declaration from those liable. As a general rule, transferred property is valued at its actual market value on the day of death. The administration has the power to rectify the value if it is insufficient. Under certain conditions, a reduction of 20% is made on the actual market value of the building constituting the principal residence of the deceased on the day of death (CGISM, art. 764 bis).
In the event of dismemberment of property, the taxable value of the life usufruct and bare ownership is fixed at a flat rate at a fraction of the value of the entire property summer, according to a scale taking into account the age of the usufructuary (CGISM, art. 669; rules identical to the national scale).
Debts owed to the deceased, existing on the day of death, are deductible from the estate assets (CGISM, art. 768 to 774).
o Exemptions: Saint-Martin tax regulations provide for a certain number of cases of exemption. Are notably exempt from transfer taxes upon death the surviving spouse and the partner linked to the deceased by a civil solidarity pact (CGISM, art. 796-0 bis). Under certain conditions, are also exempt from free transfer taxes, up to three quarters of their value, company shares or shares having been the subject of a collective conservation commitment (CGISM, art. 787B), or, in the same proportion, property allocated to the exploitation of an individual business (CGISM, art. 787 C).
o Calculation of rights : inheritance tax is calculated on the net share accruing to each heir or legatee
The prices appear in articles 777 and following of the CGISM to which the reader is invited to refer as necessary.
o Reductions (as of January 1, 2019)
- Direct line allowance (CGISM, art. 779-I): â¬165,956
- Reduction for the disabled (CGISM, art. 779-II): €165,956
- Reduction between brothers and sisters (CGISM, art. 779-IV): €16,594
- Reduction in favor of nephews and nieces (CGISM, art. 779-V): €8,299
- Reduction in the event of a donation between spouses or civil partnership partners (CGISM, art. 790 E and 790 F): €84,084
- Reduction in the event of a gift to grandchildren (CGISM, art. 790 B): 323,191 €
- Reduction in the event of a donation to great-grandchildren (CGISM, art. 790 D): €5,530
- Reduction applicable in the absence of any other reduction (CGISM, art. 788-IV): €1,661
o Tax report of previous donations : period of 6 years (CGISM, art. 784)
o Declaration and payment : the deadlines provided for by Saint-Martin regulations for the registration of declarations that heirs, donees or legatees must subscribe are:
- from twelve months from the day of death when the person whose inheritance is collected dies in the community of Saint-Martin,
- from eighteen months in all other cases (CGISM, art. 641).
The declaration must be filed with the Saint-Martin tax service accompanied by payment of the sums due (split or deferred payment possible under the same conditions as those in force in mainland France on 15 July 2007).
o Principle : donations follow a regime close to that of transfers by death. Most of the exemptions provided for in terms of inheritance tax apply to gift taxes, with the exception of the tax exemptions provided for in favor of the surviving spouse or partner, or to brothers and sisters of the deceased. The donation regime is defined by articles 750 ter et seq. of the Saint-Martin tax code (CGISM).
o Exemptions : exemptions specific to donations are provided, particularly for family donations in cash (CGISM, article 790 G).
o Basis : some of the provisions provided for in terms of inheritance tax are not applicable (deduction of 20% for the valuation of the main residence, furniture flat rate of 5% for the valuation furniture).
o Calculation of rights : donations benefit, as in matters of inheritance, from reductions (CGISM, art.779). Donations in a direct line, in a collateral line and between non-relatives are subject to the same rate as inheritances (CGISM, art. 777). The reductions in rights provided for inheritance taxes may apply (CGISM, arts. 780 and 781), as well as a reduction in rights linked to the age of the donor (CGISM, art. 790).
o Land registration tax : When they relate to buildings, donations also give rise to the payment of an additional registration fee at a rate set at 1% (CGISM art. 791). Additional registration must be paid upon completion of the registration formality with the tax office of the collecvity of Saint-Martin.
Nota Bene : temporary exemption measures aimed at encouraging inter vivos donations and facilitating the settlement of inheritances have been extended until December 31, 2022 by deliberation of the council territorial CT 23-05-2019 dated December 20, 2019.
The land advertising formality, which is then carried out with the land advertising service of Basse-Terre (Guadeloupe), does not give rise to any collection for the benefit of the collectivity of Saint- Martin.
With the exception of the rate which is 1.20%, the rules applicable to Saint-Martin are very close to those provided for at the national level. The tax regime for shares is defined by articles 746 et seq. of the Saint-Martin tax code (CGISM).
Information leaflet concerning wealth taxation 2016/2017
Deliberation CT 23-05-2019 of December 20, 2019 , and more particularly article 5 aimed at the "Extension of temporary measures aimed at encouraging inter vivos donations and measures aimed at facilitating the settlement of inheritances".
Service de publicité foncière de Basse-Terre (Basse-Terre land advertising service)
Desmarais Public Finance Center
BP 561
97100 LOWER TERRE
Email: spf.basse-terre@dgfip.finances.gouv.fr
Tel: +590 590 99 47 12
Service fical du CFP de la collectivité de Saint-Martin (Tax service of the of Saint-Martin tax office)
Rue Jean-Jacques Fayel
BP 1084 MARIGOT
97061 SAINT MARTIN CEDEX
Tel: +590 590 29 25 71
Pôle recouvrement du CFP de Saint-Martin (Tax collection department of the Saint-Martin tax office)
Rue Jean-Jacques Fayel
Box 382
97054 SAINT MARTIN CEDEX
Email: t101014@dgfip.finances.gouv.fr
Tel: +590 590 29 06 26
HAS
Various or specific taxes concern few companies.
Consumer tax on petroleum products (Article 1585 P of the Saint-Martin tax code):
The tax is due:
The amount of the tax is fixed to:
The declaration, together with the payment of the tax due, is sent from the supply, and no later than the 15th day after the supply, to the Tax office.
The tax must be paid by bank transfer (bank details on the receipt of the return).
When the goods are initially transported by sea, the debtors or their representative liquidate, declare and pay the tax to the Tax office in conjunction with the removal of the products involved in the premises of the local public establishment that manages the port of Galisbay-Bienvenue or, when these products leave the premises to be delivered on board ships (e.g., salvage operations),
Place of filing of declarations, payment of the tax : Saint-Martin tax office, 08 rue Jean-Jacques FAYEL, in Concordia.
In the event of difficulty in interpreting the regulations: Tax department of the collectivity of Saint-Martin
*Price for year 2024. Effective January 1, 2025, the rate will be increased to €0.1040, €0.10 for 2026, €0.060 for 2027, €0.021 starting at 2028 (see deliberation no.CT 36-02-21 dated May 2021).
In application of articles 991 et seq. of the Saint-Martin tax code , except for the exemptions expressly provided for, any insurance agreement concluded with an insurance company or company or with any other French or foreign insurer is subject, regardless of the place and date on which it is or was concluded, to a compulsory annual tax since the insured risk is located in Saint-Martin.
The tax is collected on the amount of sums stipulated for the benefit of the insurer (premiums or contributions, etc.) and all accessories from which it benefits directly or indirectly due to the insured (costs arising from the contract, termination compensation...).
The rate of the tax varies depending on the nature of the risk insured.
The declaration, accompanied by the payment of the tax due, is sent no later than the 15th of each month.
The tax must be paid by bank check or transfer.
Contacts:
Management of reporting obligations and control: Fiscal department of the Saint-Martin tax office
Payment: Cash collection deparment of the Saint-Martin tax office
Interpretation of the regulations: Tax Department of the collectivity of Saint-Martin
Articles 1585 Q et seq. of the Saint-Martin tax code.
This is a territorial tax on final electricity consumption that was introduced in Saint-Martin. It is due by electricity suppliers as well as by people who, as part of their economic activity, produce electricity and use it for the needs of this activity. The rate is €0.75 or €0.25/MWH for professional consumption and €0.75 for other consumptions.
Article 1585 V of the SMTC
This tax is due by air or maritime public transport companies for each commercial transport departing from Saint-Martin. The tax rate is set at €10. Crossings and flights of a distance less than 50 kilometers are however exempt.
These operations are correspondingly exempt from turnover tax.