MARIGOT–The Collectivité and Centre of Public Finances (CFP) have provided details on Prélèvement a la Source de L’Impôt sur les Revenus (withholding tax on income) to be introduced in metropolitan France and the overseas departments as of January 1, 2019.
When the activity is carried out in St. Martin, whether or not you are a tax resident of St. Martin, income from public or private sources is not subject to withholding tax. Taxpayers must pay their instalments and the balance of their taxes to the Centre des Finances Publiques in St. Martin.
When the income comes from an activity carried out in metropolitan France or in the French Overseas Departments DOM, the five-year rule applies. Residents living less than five years in the territory of St. Martin will have deductions from their income at source in accordance with Article 60 of the National Tax Code: deducted by the income payer from the bank account.
St. Martin tax residents who have been present in the territory for more than five years are not subject to withholding tax. Taxpayers must pay their instalments and the balance of the tax to the CFP in St. Martin.
With regard to taxation on public or private pensions, tax residents of metropolitan France or the French overseas departments (less than five years in St. Martin) are subject to the withholding tax.
Tax on pensions of the civil service of the State or a public institution established in mainland France or in the overseas departments is levied at source in accordance with Article 60 of the Tax Code. Tax on private pensions for residents living here less than five years is withheld at source by the debtor established in mainland France or in the French overseas departments when payment is made.
For taxation on public pensions, St. Martin tax residents (more than five years in St. Martin) are subject to the withholding tax. Tax on pensions of the State civil service or a public institution is levied at source according to Article 60 of the Tax Code.
Private pensions for tax residents of St. Martin are not subject to withholding tax. Thus, taxpayers must pay their provisional instalments and the balance of their income tax to the Centre des Finances Publiques de St. Martin.
For clarification: the implementation of the withholding tax at the national level will result in the abolition of the monthly income tax levy in St. Martin. Taxpayers benefiting from the monthly payment should contact the Public Finance Centre to find out about the new payment methods for instalments and tax balances.
For further information, contact the CFP t101014@dgfip.finances.gouv.fr
Source: The Daily Herald https://www.thedailyherald.sx/islands/83901-income-from-st-martin-not-subject-to-withholding-tax
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