Employers have several tax responsibilities that they must fulfill. These include mandatory contributions to various social and professional programs, as well as income tax withholding and record-keeping duties.

Mandatory Employer Contributions

Employers are required to make several mandatory contributions on behalf of their employees. These include:

• Social Security (ONA): Employers are required to contribute 6% of an employee's gross salary to the Office National d'Assurance-Vieillesse (ONA). This contribution goes towards retirement, disability, and survivor benefits.

• Occupational Injury, Sickness, and Maternity Insurance (OFATMA): The contribution rate for this insurance varies by industry risk level, and can range from 2% to 6% of an employee's gross salary.

• Professional Training (INFP): Employers are also required to contribute 1% of an employee's gross salary to the Institut National de Formation Professionnelle (INFP). This contribution is used to fund vocational training programs.

Additional Considerations

In addition to these mandatory contributions, employers also have several other tax responsibilities. These include:

• Income Tax Withholding: Employers are responsible for withholding income tax from employee wages and remitting it to the tax authorities (DGI - Direction Générale des Impôts).

• Payroll Records: Employers are required to maintain accurate payroll records. These records may be inspected by tax authorities to ensure compliance with tax laws.

• Late Payments: If employers fail to make their required contributions on time, they may be subject to penalties. These penalties can be imposed for late payment or non-payment of employer contributions.

In Haiti, a progressive income tax system is employed, which means the tax rate increases as your income rises. The income tax brackets in Haiti are as follows:

Progressive Tax System

• Up to 120,000 HTG (Haitian Gourde) - 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%

Social Security Contributions (OFATMA)

Employees contribute a percentage of their gross salary to OFATMA (Office of Insurance for Work Accidents, Sickness, and Maternity). The specific rates depend on the nature of work but are generally around 6% of gross income.

Other Potential Deductions

Some employers may offer pension plans, and contributions to these can be deducted from your paycheck.

The standard VAT rate in Haiti is 10% applied to the value of taxable services. Businesses surpassing a specific annual turnover threshold are generally required to register for VAT with the tax authorities (Direction Générale des Impôts – DGI).

Scope of Taxable Services

VAT in Haiti applies to a broad range of services, with some exceptions. Examples of taxable services include professional services (legal, accounting, consulting), technical services (repairs, maintenance), telecommunications services, entertainment and leisure services, transportation services, and hospitality and restaurant services.

VAT Calculation

Businesses charge VAT on the taxable services they provide, known as output VAT. They can claim a credit for the VAT they have paid on purchases of goods and services used for their business activities, called input VAT. The difference between the output VAT and the input VAT determines the net VAT payable to the tax authorities.

VAT Invoicing and Reporting

Businesses must issue tax invoices for taxable services, containing specific details as required by the DGI. They are also required to file periodic VAT returns (usually monthly or quarterly) with the DGI and remit any net VAT payable.

Exemptions and Zero-Rated Services

Certain services may be exempt from VAT in Haiti or subject to a zero-rate. These can include essential services like healthcare and education, financial services, and exports of services.

Penalties for Noncompliance

Haiti has penalties for non-compliance with VAT regulations, including late payment penalties, interest charges, and fines.

Haiti provides a variety of tax incentives to stimulate investment and development in different sectors. These incentives include income tax exemptions, customs duty exemptions, and property tax exemptions. The duration of these exemptions can vary, often ranging from 5 to 15 years.

Eligibility for these tax incentives depends on several factors. These include the sector of activity, with priority sectors such as agriculture, manufacturing, tourism, energy, and infrastructure development often being targeted. The location of the business also matters, with businesses investing in certain under-developed regions of Haiti potentially qualifying for additional incentives. Other factors include job creation and export orientation.

There are several key laws providing tax incentives in Haiti. The Haitian Investment Code is the main legal framework outlining tax incentives and eligibility criteria. The Industrial Free Zone Law provides specific incentives for businesses operating within designated industrial free zones. The Tourism Law offers incentives for investment in tourism-related activities.

To apply for tax incentives, businesses need to contact the Center for Facilitation of Investments (CFI), the government agency responsible for promoting investment and assisting businesses with tax incentive applications. They then need to submit an application with supporting documentation, outlining their investment project and demonstrating eligibility for incentives. The CFI, in coordination with relevant ministries, will evaluate the application and determine eligibility.

Each tax incentive program may have specific eligibility criteria and application procedures. Tax incentives are usually granted for a limited time, and businesses must comply with the terms and conditions of the incentive agreement to maintain their benefits.