Verified Facts
The tax rates in French Guiana range from 0% to 45% for personal income, with a corporate tax rate of 15% to 33.33%, and a value-added tax (VAT) rate of 8.5% to 20%, making it essential for expats and businesses to understand the tax system to navigate their obligations.
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
French Guiana, as an overseas department and region of France, follows the French tax system, which is based on the principle of worldwide taxation. This means that residents are taxed on their global income, regardless of where it is earned. However, non-residents are only taxed on their French-sourced income. The residency rules for tax purposes are based on the individual's domicile, which is determined by their place of residence, family ties, and economic interests.
The tax system in French Guiana is complex and has various rules and regulations, making it essential for individuals and businesses to understand their tax obligations. The tax authorities in French Guiana are responsible for collecting taxes, and the tax year runs from January to December. The tax treaty network of French Guiana, through its parent country France, includes 127 countries, which helps to prevent double taxation and facilitates the exchange of tax information between countries.
Personal Income Tax
| Income Bracket (EUR) | Tax Rate |
|---|---|
| 0 - 10,084 | 0% |
| 10,085 - 26,791 | 11% |
| 26,792 - 74,697 | 30% |
| 74,698 - 157,362 | 41% |
| 157,363 and above | 45% |
| The personal income tax rates in French Guiana are progressive, with five brackets. Taxpayers are also entitled to various deductions and allowances, such as a standard deduction, mortgage interest relief, and charitable donations. The tax filing requirements are straightforward, with taxpayers required to file their tax returns by May 31st of each year. Taxpayers can also claim tax credits for certain expenses, such as childcare costs and education expenses. |
Corporate & Business Tax
- The corporate tax rate in French Guiana is 15% to 33.33%, depending on the company's size and type.
- Small businesses and startups may be eligible for small business incentives, such as reduced tax rates and exemptions.
- French Guiana has several free zones, which offer tax exemptions and other benefits to companies operating in these areas.
- Companies are required to register with the tax authorities and obtain a tax identification number.
- Companies must also comply with VAT registration requirements, if their annual turnover exceeds EUR 82,800.
VAT / Sales Tax
- The standard VAT rate in French Guiana is 20%, but there are reduced rates of 8.5% and 2.1% for certain goods and services.
- Reduced rates apply to essential goods, such as food, healthcare, and education.
- Certain goods and services are exempt from VAT, such as financial services and insurance.
- French Guiana has a tourist refund scheme, which allows tourists to claim a refund of VAT paid on certain purchases.
For Expats & Foreign Workers
- Expats and foreign workers are considered tax residents if they spend more than 183 days in French Guiana in a calendar year.
- Double taxation treaties are in place to prevent double taxation of income earned by expats and foreign workers.
- Expats and foreign workers are required to register with the tax authorities and obtain a tax identification number.
- Expats and foreign workers may be eligible for tax credits for foreign taxes paid on income earned abroad.
- Expats and foreign workers must comply with social security regulations and contribute to the French social security system.
- Expats and foreign workers must also comply with remittance rules, which require them to report and pay tax on income remitted to France.
Crypto & Investment Income
- Investment income, such as dividends, interest, and capital gains, is subject to income tax.
- Cryptocurrency is considered a taxable asset, and gains from the sale of cryptocurrency are subject to capital gains tax.
- Dividend income is subject to a withholding tax of 21%, but this can be reduced under certain double taxation treaties.
- Capital gains tax is payable on the sale of assets, such as real estate, securities, and businesses.