Employer Tax Contributions

Tax Type	Rate	Base
Social Security	~41% to 45%	Gross Salary
Income Tax Withholding	0% to 45% (progressive)	Net Taxable Salary
VAT (if applicable)	8.5% (standard)	Tax Excluded Price (goods/services)

Filing & Compliance

• Social security contributions are typically declared and paid monthly or quarterly.
• Income tax withheld from employee salaries must be declared and paid monthly.
• Employers must submit an annual payroll declaration (DSN) electronically.

In Martinique, employee tax deductions encompass various mandatory contributions and income tax, impacting an employee's net pay.

Income Tax

Income tax is determined based on the employee's earnings, applicable tax rates, and eligible deductions. As of 2023, a standard allowance for professional expenses equal to 10% of taxable employment income is applied (capped at €13,522). Employees may opt to deduct actual professional expenses instead, although this necessitates adding back any employer-reimbursed expenses to the taxable salary. Tax scales and thresholds are subject to annual revisions, with updates for 2025 expected following the publication of the budget law.

Social Security Contributions

Employees in Martinique contribute to social security through deductions from their salary. These contributions cover various branches of social security, including healthcare, retirement, and family allowances. Specific contribution rates and ceilings are subject to change, and employers are responsible for withholding the correct amounts from employee salaries.

Payroll Tax

Martinique applies a payroll tax to employers, calculated based on the employee's gross earnings. The applicable rate is 2.95% in Guadeloupe, Martinique, and Reunion, and 2.55% in Guyana and Mayotte. This tax is distinct from the employee's income tax and social security contributions. Salary thresholds and related calculations are subject to change each year after the income tax brackets are re-evaluated in the annual budget law.

Other Deductions

Besides income tax and social security, other deductions might include payments for employee benefits like supplementary health insurance or retirement plans, if applicable. Certain personal deductions, like alimony payments, might also reduce the taxable income. Additional information on specific deductions can often be found in the official budget law published annually.

Tax Year and Deadlines

The tax year in Martinique typically aligns with the calendar year. Employers are responsible for filing relevant tax declarations and payments within specified deadlines, which can vary based on the type of tax or contribution. For income tax, employees usually file their annual tax return in the following year. The specific deadlines for 2025 declarations and payments should be confirmed with the relevant authorities or a tax advisor.