Understanding corporate income tax and other business taxes in New Caledonia is crucial for companies operating within the territory. Alongside corporate income tax, businesses should be aware of other taxes, including GST, payroll taxes, local business taxes, import duties, and excise taxes. It is advisable to consult with a tax professional or refer to the official website of the New Caledonian tax authority for the most accurate and up-to-date information. By fulfilling their tax obligations, businesses can operate in compliance with New Caledonian tax laws and contribute to the economic growth and development of this beautiful island territory.
Corporate Income Tax:
New Caledonia imposes corporate income tax, known as "Impôt sur les Sociétés" (IS), on the profits earned by companies operating within its jurisdiction. The corporate income tax rate in New Caledonia is progressive, based on the level of taxable income. As of the knowledge cutoff date in September 2021, the tax rates for 2021 are as follows:
- For companies with annual taxable income up to XPF 10 million: 20%
- For companies with annual taxable income between XPF 10 million and XPF 50 million: 24.4%
- For companies with annual taxable income exceeding XPF 50 million: 27.5%
Types of Business Taxes in New Caledonia:
- General Sales Tax (GST): New Caledonia operates a General Sales Tax (GST) system, known as "Taxe sur la Valeur Ajoutée" (TVA). The standard GST rate in New Caledonia is currently set at 15%. However, reduced rates of 5% and exemptions apply to specific goods and services.
- Payroll Taxes: Employers in New Caledonia are responsible for deducting payroll taxes from their employees' wages. These taxes include social security contributions, health insurance contributions, and pension fund contributions. The rates for these contributions vary based on the employee's gross salary and specific circumstances.
- Local Business Taxes: Local municipalities in New Caledonia may levy additional business taxes, such as local business tax, advertising tax, and property tax. The rates and requirements for these taxes vary based on the specific municipality.
- Import Duties: Import duties are levied on goods brought into New Caledonia from other countries. The rates for import duties vary depending on the type of goods and their classification.
- Excise Taxes: Excise taxes may be applicable to specific goods, such as alcohol, tobacco, and petroleum products. The rates for excise taxes vary based on the type of product.
New Caledonian Tax Authority Website:
For comprehensive and up-to-date information on business taxes in New Caledonia, it is recommended to visit the official website of the New Caledonian tax authority, the Direction des Services Fiscaux.
New Caledonian Tax Authority Website: Official New Caledonian Tax Authority Website
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