Employers in French Guiana are required to make significant contributions to the French social security system. These contributions include health insurance, pension, unemployment insurance, family allowances, and work accidents and occupational diseases.

Health Insurance

The rates for health insurance contributions vary and include contributions to both basic coverage and supplementary coverage schemes.

Pension

Employers contribute to various pension schemes, including basic state pensions and supplementary occupational pensions.

Unemployment Insurance

Employer contributions fund the unemployment benefit system.

Family Allowances

Employers contribute to funding family benefits like childcare support and parental leave.

Work Accidents and Occupational Diseases

Contributions cover workplace injuries and illnesses.

In addition to social security contributions, employers might also be liable for other mandatory contributions.

Payroll Taxes

Employers might be liable for various payroll taxes calculated as a percentage of total salaries. These may have specific variations in French Guiana.

Apprenticeship Tax

Companies above a specific size are generally required to contribute to apprenticeship funding.

Housing Contribution

Employers may be required to contribute a percentage of payroll towards housing initiatives.

There are also important considerations to keep in mind. The employer tax contributions in French Guiana are largely aligned with the complex French system. Specific rates and regulations may have regional nuances. Employers likely register with URSSAF (or a French Guiana equivalent), withhold employee contributions, add their own, and remit payments on a regular basis.

In France, a progressive income tax system is used, which may have potential adjustments for French Guiana. Tax rates are applied in brackets, and it's crucial to use tax calculators or guidance specific to French Guiana for accuracy.

Social Security Contributions

As an employee in French Guiana, you are required to make the following social security contributions:

• General Social Contribution (CSG): This is a broad-based contribution applied to various income sources, including your salary.
• Retraite (Pension): These contributions fund various pension schemes.
• Health insurance: These contributions cover healthcare costs.
• Unemployment Insurance: These contributions fund unemployment benefits.

Other Potential Deductions

Depending on the sector and collective agreements, you might be required to contribute to supplementary pension schemes.

Important Considerations

While the tax system in French Guiana resembles that of mainland France, there might be regional adjustments to rates or deductions. It's important to note that employers are likely responsible for deducting income tax and social security contributions from their employees' salaries.

To ensure complete accuracy, always consult with the tax administration specific to French Guiana (if it exists), French tax authorities focusing on overseas departments, or tax professionals specializing in French Guiana.

In French Guiana, the standard VAT rate (taxe sur la valeur ajoutée or TVA) is 20%. Reduced rates of 10% and 5.5% apply to specific goods and services such as food, books, transportation, and cultural services. Occasionally, a 2.1% rate might apply.

VAT Liability for Services

When determining your VAT liability, consider the place of supply rules which establish where a service is deemed to be supplied for VAT purposes. General rules apply based on service type, whether the customer is a business (B2B) or an individual (B2C), and the location of both parties. The reverse charge mechanism might apply in certain B2B transactions, meaning that the French Guiana business receiving the service from a non-French supplier might become responsible for accounting for the VAT.

Important Categories of Services

Specific categories have particular importance in French Guiana. Providing digital services to consumers in French Guiana may trigger VAT obligations, even if your business is located outside France. Services with a significant connection to a property located in French Guiana, such as construction and real estate services, usually fall under French Guiana's VAT rules. Consulting, legal, and accounting services, when performed in French Guiana or deemed supplied in French Guiana, typically are subject to VAT.

VAT Registration and Reporting

Businesses exceeding a specific revenue threshold within France, which likely applies to French Guiana, might need to register for VAT. Registered businesses must file periodic VAT returns and make corresponding payments to the tax authorities in France.

Important Considerations

VAT in French Guiana generally follows the French model but might have specific regional variations or adjustments. Always consult the French tax authorities focusing on overseas departments, tax specialists in French Guiana, and potentially the French Guiana Chamber of Commerce (or equivalent) for precise guidance and up-to-date information.

Tax incentives play a crucial role in promoting business growth and development. In French Guiana, these incentives are available at both national and regional levels, and are often enhanced for overseas departments.

Research and Development (R&D) Incentives

The Research Tax Credit (CIR) and Young Innovative Company Status (JEI) are two key incentives that businesses can leverage. These incentives are likely to offer higher benefits for businesses operating in French Guiana.

Overseas Investment Incentives

Investments in French overseas departments often come with tax reductions and exemptions. These incentives are tailored to promote investment and economic growth in these regions.

Regional Incentives Specific to French Guiana

French Guiana offers specific regional incentives to businesses. The Zone Franche d’Activité (ZFA) is a designated zone within French Guiana that offers significant tax holidays, social contribution reductions, and customs duty exemptions for qualifying businesses.

Specific Sector Support

There are also focused incentives for sectors crucial to French Guiana's development. These sectors include sustainable resource management (forestry, fishing), ecotourism, and renewable energy.

Important Considerations

When considering these tax incentives, it's important to note that specific eligibility requirements usually apply. Businesses must ensure their activities qualify for these incentives. Additionally, tax incentives generally involve applications and approval processes. In French Guiana, incentives often combine national programs with greater benefits for overseas territories, along with region-specific schemes.