HaitiTax Obligations Detailed

In Haiti, employers face several tax obligations, including social security, health insurance, and income tax withholding.

Employer Contributions

• Social Security (ONA): 6% of the employee's gross salary.
• Health Insurance (OFATMA): 2-6% of the employee's gross salary. A 2% rate applies to industrial or agricultural enterprises, while a 6% rate is for commercial businesses.
• Occupational Accident Insurance: 2% of employee's salary, applicable to commercial sector employers.

Employee Deductions

• Social Security (ONA): 6% of the employee's gross salary.
• Health Insurance (OFATMA): 3% of the employee's gross salary.
• Income Tax: Progressive rates ranging from 0% to 30% based on employee earnings. As of December 2023, the income tax brackets are:
  • 0% for up to 120,000 HTG.
  • 10% for 120,001 to 240,000 HTG.
  • 15% for 240,001 to 480,000 HTG.
  • 25% for 480,001 to 1,000,000 HTG.
  • 30% for over 1,000,000 HTG.
• Payroll Tax: 2% of the employee's salary.

Value Added Tax (VAT)

A 10% VAT is applied to most goods and services in Haiti. Certain goods and services may be exempt or have reduced rates.

Additional Taxes

• Tax on Initial Capital: A 2% annual tax on a corporation's initial capital.
• Tax on Share (Taxe sur action): 0.3% per share annually.
• Right of Operating Tax (Droit de fonctionnement): 1,500 HTG annually.
• Professional Identity Card Fee: 1,500 HTG.

Important Considerations

• Fiscal Year: The fiscal year in Haiti runs from October 1st to September 30th.
• Payroll Frequency: Payroll is typically processed monthly.
• Minimum Wage: Minimum wages vary by industry and profession, ranging from 350 HTG to 770 HTG.

It's important to note that this information is based on the latest available data as of today, February 5, 2025, and may be subject to changes. Consulting legal and tax professionals for the most current and accurate information is highly recommended.

In Haiti, employee tax deductions encompass income tax, social security contributions, and other deductions like those for health insurance.

Income Tax

Income tax is levied progressively based on earnings. The tax rates are structured in tiers. Source [3] mentions the following rates for 2023, and while 2025 rates aren't available in the sources, these provide a general idea:

• Up to 120,000 HTG: 0%
• 120,001 - 240,000 HTG: 10%
• 240,001 - 480,000 HTG: 15%
• 480,001 - 1,000,000 HTG: 25%
• Over 1,000,000 HTG: 30%

It's important to seek updated rates from official Haitian government sources for 2025. Source [5] notes income tax as a key direct tax, with rates possibly between 10% and 35%, although confirmation for 2025 is needed.

Social Security Contributions

Both employees and employers contribute to social security. The employee contribution is typically 6% of their salary. (Sources [3] and [5])

Other Deductions

Additional deductions from an employee's salary may include:

• Health Insurance: Employers typically contribute a percentage towards employee health insurance (Source [5]). Sources mention 3% as a possible rate, but it is necessary to confirm.
• Payroll Tax: A 2% payroll tax contribution from employees is also mentioned by some sources. However, official current information needs to be verified. (Sources [4] and [5])
• Maternity and Sickness Insurance: A 3% contribution by employees has been noted in some sources. Again, verify current requirements. (Source [4])

Employer Responsibilities

Employers are responsible for withholding these taxes and contributions from employee salaries and remitting them to the appropriate Haitian authorities. Deadlines and procedural requirements should be confirmed with official sources or local experts. An Employer of Record (EOR) can significantly simplify navigating these complexities. (Source [1]) An EOR handles all aspects of payroll, deductions, and compliance, minimizing the risk of errors and penalties.

Additional Notes

Personal deductions like those for charitable contributions, taxes paid abroad, and losses, generally are not applicable in the Haitian income tax system. (Source [2]) Always consult updated official Haitian government sources or tax professionals for the most accurate and current information, as tax regulations can change.

In Haiti, the Value Added Tax (VAT), a general consumption tax, is levied at a standard rate of 10% on the sale of goods, provision of services, and imports.

VAT Registration

While specific registration thresholds for VAT in Haiti are not readily available, it's generally understood that businesses exceeding a certain annual turnover are required to register for VAT. It's crucial to consult with local tax authorities or a tax advisor in Haiti for the most up-to-date and specific information on registration requirements.

VAT Filing and Payment

Registered businesses are generally required to file VAT returns and remit collected VAT to the tax authorities on a monthly basis. Information on specific deadlines for filing and payment can be obtained from Haitian tax authorities. Penalties likely apply for late filing and payment.

Exempt Goods and Services

Several goods and services are exempt from VAT in Haiti, including:

• Petroleum products
• Printed materials like newspapers, books, and magazines
• Locally produced agricultural products
• Agricultural inputs for farming, livestock, and fishing
• Inputs for manufacturing medicines sold in pharmacies
• Machinery and equipment for agriculture, fishing, and livestock breeding
• Legal services

Additionally, goods in transit, storage, or temporary entry regimes, including those intended for processing and assembly industries solely for export, are also VAT-exempt. Specific details on exemptions can be confirmed with the Haitian tax authorities.

It's important to consult with local tax professionals or the Haitian tax authorities directly for the latest information on VAT regulations, as rates, thresholds, and other specifics are subject to change.

Haiti offers tax incentives primarily focused on attracting foreign direct investment and bolstering specific sectors like apparel manufacturing. These incentives generally fall into two categories: customs duty incentives and income tax incentives.

Customs Duty Incentives

These incentives often involve exemptions or reductions in customs duties on imported goods, particularly for businesses operating within Free Trade Zones (FTZs). Specific details on these incentives are often lacking in publicly available information and may require direct consultation with Haitian authorities.

Income Tax Incentives

• General Investment Incentives: Companies engaged in activities that add value to the Haitian economy, such as processing local raw materials or producing export-oriented goods, can qualify for income tax incentives. These may include full or partial exemptions from income tax for a specified period. Eligibility often requires meeting certain criteria, such as a minimum level of local input utilization.

• Free Trade Zone (FTZ) Incentives: Businesses operating within designated FTZs can benefit from significant income tax advantages, potentially including full exemption for a period of up to 15 years, followed by gradually decreasing partial exemptions. These zones aim to encourage export-oriented industries and generate employment.

• Apparel Sector Incentives (HOPE/HELP): The Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) Act and the Haiti Economic Lift Program (HELP) Act provide duty-free access to the U.S. market for certain apparel products made in Haiti. These preferences are significant for Haiti's apparel industry, a major export sector. Note that these preferences are set to expire in September 2025 unless extended.

Application Procedures

Information on specific application procedures for tax incentives in Haiti can be limited. The Centre de Facilitation des Investissements (CFI), the Haitian government agency responsible for promoting investment, may provide further guidance and assistance with the application process.

General Information

While Haiti's investment code grants equal rights to both local and foreign companies, navigating the bureaucratic processes can be challenging. Up-to-date, detailed information on specific incentive programs and eligibility requirements may not be readily accessible publicly. Direct engagement with the CFI and legal professionals specializing in Haitian investment law is often essential for successfully obtaining and utilizing available tax benefits. It's important to note that the political and economic climate in Haiti can impact the effectiveness and stability of investment incentives. Staying informed about current conditions and engaging with relevant authorities is crucial for navigating the investment landscape. Given the dynamic nature of these regulations and the current situation in Haiti, consulting official government resources or legal experts specializing in Haitian tax law is highly recommended for the most accurate and up-to-date information.