GENERAL TAX CODE OF SAINT-MARTIN
Territorial Council meeting of June 4, 2009
The Territorial Council adopted the part of the new GENERAL TAX CODE OF THE COMMUNITY OF ST MARTIN bringing all the rules of assessment and calculation of the INCOME TAX, the INCOME TAX taxes and other former Direct State transferred to the community.
The codification of these rules was accompanied by the introduction of new provisions, including:
- The extension until December 31, 2013 the period for implementing the system of tax assistance for investment by individuals, which allows residents of Saint-Martin to benefit from a reduction of income tax under the acquisition or construction of a new home for the main house;
- Introducing a tax on interest from loans from a bank for the acquisition or construction of an existing dwelling for the principal dwelling;
- The establishment of a foreign tax credit whereby a taxpayer resident of St. Martin with incomes which have their source in France (metropolitan or DOM), St Maarten, the United States or in any other state or territory outside, to escape the double taxation that can be deducted from tax due to the community of St. Martin under his total income, tax paid to the state or territory from which its revenue outside .
DEVOTION BY THE EUROPEAN COMMISSION'S FISCAL AUTONOMY OF THE COMMUNITY OF SAINT-MARTIN
In a decision dated June 3, 2009, and after a careful review of the new situation of the community of St. Martin, the EUROPEAN COMMISSION has decided that:
"The conditions under which the territorial council of the community of St. Martin has set the tax rates in the community appear to meet exactly those to which the Court of Justice of European Communities makes recognition of quality measures general, lack of selectivity of a character, including regional tax rules adopted by a sub-state. "
The result of this decision, in particular, that measures such as setting the rate of corporation tax to 22% instead of 33% in the case of corporation tax of the State, or other general tax measures adopted or planned, does not constitute "state aid" under the Treaty on the European Community and therefore can be freely decided by the Territorial Council of the community.
Full recognition by the EUROPEAN COMMISSION, the fiscal autonomy of the community of Saint-Martin is an important innovation because COMMISSION heard previously subject to its control the tax measures adopted by local authorities with a specific tax jurisdiction while belonging to the territory of the European Community (Gibraltar, the Azores, etc..).
In its decision, the Commission also states that the transformation of SAINT-MARTIN in a community overseas governed by Article 74 of the Constitution, detached from the overseas department of Guadeloupe, "has not affect the status of St. Martin in relation to Article 299, paragraph 2 of the EC Treaty ".
As a result, the community of Saint-Martin remains subject to Community law, but under the conditions provided for in the outermost regions (ORs), that is to say, with the possibility to derogate or adaptations to common rules of the Treaty.
Source: http://www.com-saint-martin.fr
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