🇵🇫 French Polynesia Tax Guide — Income, Corporate & VAT Rates

The tax rates in French Polynesia range from 6% to 35% for personal income tax, with a corporate tax rate of 27% and a value-added tax (VAT) rate of 10%.

Tax System Overview

French Polynesia, as an overseas collectivity of France, has a territorial taxation system, meaning that only income earned within the territory is subject to tax. However, individuals who are resident in French Polynesia may also be subject to tax on their worldwide income, depending on their individual circumstances. Residency for tax purposes is generally determined by the individual's physical presence in the territory, with a minimum stay of 6 months in a calendar year required to be considered a resident.

The tax system in French Polynesia is designed to be relatively simple and straightforward, with a focus on supporting the local economy and encouraging foreign investment. The territory has a number of tax incentives in place, including reduced tax rates for certain types of businesses and exemptions for specific types of income. However, the tax system is also subject to change, and individuals and businesses should always consult with a qualified tax professional to ensure they are in compliance with the latest regulations.

Personal Income Tax

Corporate & Business Tax

• The corporate tax rate in French Polynesia is 27%, with a reduced rate of 10% available for certain types of businesses, such as those in the tourism sector.
• Small business incentives are available, including a reduced tax rate of 15% for businesses with annual turnover of less than XPF 5 million.
• Free zones are available in certain areas of the territory, offering reduced tax rates and other incentives for businesses that locate there.
• Businesses are required to register with the territorial tax authority and obtain a tax identification number in order to operate in French Polynesia.
• Value-added tax (VAT) registration is also required for businesses with annual turnover of more than XPF 1 million.

VAT / Sales Tax

• The standard VAT rate in French Polynesia is 10%, with reduced rates of 5% and 2% available for certain types of goods and services.
• Exemptions from VAT are available for certain types of goods and services, including basic foodstuffs and medical supplies.
• A tourist refund scheme is available, allowing tourists to claim a refund of VAT paid on certain types of goods and services.
• Registration for VAT is required for businesses with annual turnover of more than XPF 1 million.

For Expats & Foreign Workers

• Tax residency rules for expats and foreign workers are based on physical presence in the territory, with a minimum stay of 6 months in a calendar year required to be considered a resident.
• Double taxation treaties are in place with 17 countries, including France, to prevent double taxation of income.
• Social security contributions are required for expats and foreign workers, with a rate of 10% of gross income.
• Remittance rules are in place to regulate the transfer of funds out of the territory, with a maximum limit of XPF 1 million per transaction.
• Work permits are required for foreign workers, and must be obtained before commencing employment in the territory.
• Tax obligations for expats and foreign workers include filing a tax return and paying any tax due by the end of April each year.

Crypto & Investment Income

• Investment income, including dividends and interest, is subject to tax at the individual's marginal tax rate.
• Capital gains tax is levied at a rate of 6% on gains from the sale of assets, including cryptocurrency.
• Dividend income is subject to a withholding tax of 15%, which can be reduced or eliminated under certain double taxation treaties.
• Cryptocurrency is considered a capital asset for tax purposes, and gains from its sale are subject to capital gains tax.