Verified Facts
The tax rates in Mayotte range from 4% to 35% for personal income tax, with a corporate tax rate of 15% for small and medium-sized enterprises, and a standard VAT rate of 2.1% to 8.5% for goods and services.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Mayotte, as an overseas department of France, follows the French tax system, which is based on the principle of worldwide taxation. This means that individuals who are considered tax residents of Mayotte are subject to tax on their worldwide income, regardless of where it is earned. To be considered a tax resident, an individual must have their permanent home or center of economic interests in Mayotte, or spend more than 183 days in the territory in a calendar year. The tax system in Mayotte is designed to promote economic growth and development, while also ensuring that individuals and businesses contribute to the public coffers.
The tax system in Mayotte is also influenced by its geographical location and economic ties with neighboring countries, such as Comoros and Madagascar. As a result, the territory has implemented various tax incentives and exemptions to attract foreign investment and promote trade with its neighbors. For example, Mayotte has a free zone where companies can operate with reduced tax rates and other benefits. Additionally, the territory has signed double taxation treaties with several countries, including France, to avoid taxing the same income twice and to promote cross-border trade and investment.
Personal Income Tax
The personal income tax rates in Mayotte range from 4% to 35%, with six income brackets. The tax rates and brackets are as follows:
| Income Bracket (EUR) | Tax Rate |
|---|---|
| 0 - 9,700 | 4% |
| 9,701 - 26,791 | 11% |
| 26,792 - 71,826 | 20% |
| 71,827 - 153,783 | 25% |
| 153,784 - 250,000 | 30% |
| above 250,000 | 35% |
Individuals are entitled to various deductions and allowances, such as a deduction for mortgage interest and a family allowance. Taxpayers are required to file their tax returns by May 31st of each year, and can do so online or through a tax professional. The tax authority in Mayotte also provides various tax credits and exemptions to encourage individuals to invest in certain sectors, such as renewable energy and education.
Corporate & Business Tax
- The corporate tax rate in Mayotte ranges from 15% to 33.33%, with a reduced rate of 15% for small and medium-sized enterprises.
- Small business incentives are available, such as a reduced tax rate of 10% for the first EUR 38,120 of taxable income.
- Mayotte has a free zone where companies can operate with reduced tax rates and other benefits, such as exemptions from value-added tax and customs duties.
- Companies are required to register with the tax authority and obtain a tax identification number.
- Audit requirements are in place, and companies must maintain accurate and complete financial records.
VAT / Sales Tax
- The standard VAT rate in Mayotte is 8.5%, but a reduced rate of 2.1% applies to certain goods and services, such as food and medicine.
- Exemptions are available for certain goods and services, such as financial services and educational services.
- A tourist refund scheme is in place, allowing tourists to claim a refund of VAT on certain purchases.
- Registration requirements are in place for businesses that are required to charge VAT.
For Expats & Foreign Workers
- Tax residency rules are based on the number of days spent in Mayotte, with individuals considered tax residents if they spend more than 183 days in the territory.
- Mayotte has a double taxation treaty with France, which avoids taxing the same income twice.
- Social security contributions are required for employees and self-employed individuals, and provide access to various benefits, such as healthcare and unemployment benefits.
- Remittance rules are in place, and individuals are required to report and pay tax on income earned abroad.
- Special tax regimes are available for certain categories of expats, such as foreign executives and researchers.
- Tax credits are available for expats who have paid tax in another country, to avoid double taxation.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to tax, with a withholding tax rate of 20% for non-residents.
- Capital gains are subject to tax, with a rate of 20% for individuals and 33.33% for companies.
- Cryptocurrency is considered a financial instrument, and is subject to tax on gains and losses.
- Tax exemptions are available for certain types of investment income, such as pensions and annuities.