Employer Tax Contributions

Tax Type	Rate	Base
Social Security Contributions	Around 45% (average)	Employee's gross salary
Unemployment Insurance	Around 4-5%	Gross salary
Workplace Accident Insurance	Varies by industry	Gross salary

Filing & Compliance

• Monthly DSN Submission: Due by the 5th or 15th of the following month, depending on company size and payment schedule.
• Monthly/Quarterly Payments: Payment deadlines generally align with DSN submission.
• Income Tax Withholding: Employers withhold income tax from salaries based on a personalized rate from the tax authorities.

In Guadeloupe, employee tax deductions follow the French system and primarily consist of income tax and social security contributions.

Income Tax

Income tax is deducted directly from employee salaries based on the progressive tax scale applicable in mainland France. The tax rate increases with income level.

Social Security Contributions

Both employers and employees contribute to the French social security system. Employee contributions are deducted from their gross salary. These contributions fund various social programs, including healthcare, pensions, and family allowances.

• CSG (Contribution Sociale Généralisée): A general social contribution levied on salaries and pensions.
• Other Social Security Contributions: Covering areas like health insurance, retirement, and unemployment.

Additional Deductions

• Professional Expenses: A standard allowance of 10% of taxable employment income (up to a certain limit) is automatically deducted for professional expenses. Employees can choose to deduct actual expenses instead, but this requires documentation and may involve adjustments for reimbursements.
• Supplementary Social Contribution (CSA): This wealth tax applies only to high earners in France.

Tax Rates and Thresholds

Specific tax rates, thresholds, and contribution amounts for social security are subject to annual adjustments by the French government. For the most current information, it's essential to refer to official French government publications or consult a tax professional. As of February 5, 2025, these figures for 2025 are not yet finalized.

Deadlines and Procedures

Employers in Guadeloupe must register with the French tax and social security authorities. They are responsible for deducting employee contributions, remitting them to the appropriate agencies, and filing relevant declarations according to established deadlines. Generally, monthly tax and social security declarations and payments are due by the 15th of the following month. Annual returns are also required.

Retirement Fund Contributions

Employees can deduct contributions made to approved pension, provident, and retirement annuity funds. The deduction is capped at a percentage of their remuneration or taxable income, whichever is higher. Specific limits and regulations should be verified with official sources or a financial advisor.

It is important to note that this information is current as of February 5, 2025, and tax laws and regulations are subject to change. Consulting with a qualified tax advisor is recommended for personalized guidance.