Verified Facts
The tax rates in New Caledonia range from 5% to 40% for personal income, with a corporate tax rate of 30% and a value-added tax (VAT) rate of 5%.
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
New Caledonia, as a territory of France, has a territorial taxation system, where individuals and companies are taxed on their income earned within the territory, regardless of their residency status. However, residents of New Caledonia are also subject to tax on their worldwide income, with foreign tax credits available to avoid double taxation. To be considered a resident for tax purposes, an individual must have their permanent home in New Caledonia, or spend more than six months in the territory during a calendar year.
The tax system in New Caledonia is designed to be relatively straightforward, with a focus on simplicity and ease of compliance. The territory has a tax authority, known as the Direction des Finances et de l'Économie, which is responsible for administering and collecting taxes. Taxpayers can access a range of services and resources online, including tax returns and payment facilities. New Caledonia's tax system is also designed to be competitive, with a range of incentives and exemptions available to attract businesses and investment to the territory.
Personal Income Tax
| Income Bracket (XPF) | Tax Rate |
|---|---|
| 0 - 500,000 | 5% |
| 500,001 - 1,000,000 | 10% |
| 1,000,001 - 2,000,000 | 20% |
| 2,000,001 - 5,000,000 | 30% |
| 5,000,001 and above | 40% |
| Taxpayers in New Caledonia are entitled to a range of deductions and allowances, including deductions for mortgage interest, charitable donations, and childcare expenses. Tax returns must be filed by April 30th each year, and taxpayers can choose to file online or by mail. It is also important to note that tax rates and brackets are subject to change, so taxpayers should check with the tax authority for the latest information. |
Corporate & Business Tax
- The corporate tax rate in New Caledonia is 30%, with a reduced rate of 10% available for small businesses with annual turnover of less than XPF 10 million.
- Small businesses may also be eligible for incentives, such as tax exemptions or subsidies, to encourage investment and job creation.
- New Caledonia has several free zones, including the Noumea Free Zone, which offer tax exemptions and other benefits to companies operating within the zone.
- Companies must register with the tax authority and obtain a tax identification number before commencing business in New Caledonia.
- Companies are also required to file annual tax returns, which must include financial statements and other supporting documentation.
VAT / Sales Tax
- The standard VAT rate in New Caledonia is 5%, with a reduced rate of 2% applying to certain goods and services, such as food and healthcare.
- Exemptions are available for certain goods and services, including financial services and education.
- Tourist refund schemes are available for international visitors, allowing them to claim a refund of VAT paid on eligible goods and services.
- VAT returns must be filed quarterly, with payment due within 30 days of the end of each quarter.
For Expats & Foreign Workers
- Tax residency rules apply to individuals who spend more than six months in New Caledonia during a calendar year, or have a permanent home in the territory.
- New Caledonia has double taxation treaties with 20 countries, including France, Australia, and Japan, to avoid double taxation of income.
- Social security contributions are mandatory for employees and self-employed individuals, with a contribution rate of 10% of gross income.
- Remittance rules apply to foreign workers, who may be required to obtain a special permit to remit income earned in New Caledonia to their home country.
- Expats and foreign workers may also be eligible for tax credits or exemptions, depending on their individual circumstances.
- It is also important for expats and foreign workers to register with the tax authority and obtain a tax identification number, in order to comply with tax obligations and access tax benefits.
Crypto & Investment Income
- Investment income, including dividends and interest, is subject to tax at the individual's marginal tax rate.
- Capital gains tax applies to gains realized on the sale of assets, including shares and real estate, with a tax rate of 5% or inclusion in income.
- Cryptocurrency is considered a financial asset, and is subject to tax on any gains realized on its sale or exchange.
- Taxpayers may be required to report their investment income and capital gains on their annual tax return, and may be eligible for tax losses or exemptions, depending on their individual circumstances.