MayotteTax Obligations Detailed

Employers in Mayotte have various tax obligations, including social security contributions, payroll tax, and specific considerations for overseas departments.

Social Security Contributions

Employers contribute a significant portion of employee salaries towards social security, covering areas like health insurance, family allowances, pensions, occupational accidents and illnesses, and unemployment insurance. The rates for these contributions are complex and depend on several factors. For example, as of January 15, 2025, contributions for occupational accidents and illnesses are 0.25% of salary up to €4,728, with a reduced rate of 0.03% for temporary work agencies. Additionally, employers contribute to the general social contribution (CSG) at rates of 0.55% for companies with under 11 employees and 1% for larger companies, calculated on the total salary.

Payroll Tax

The payroll tax applies to employers in Mayotte not subject to VAT. It's calculated on the remuneration paid throughout the year using a progressive scale, with a standard rate of 4.25% applied to all earnings. As of February 5, 2025, the specific 2025 thresholds for the higher rates are pending publication of the 2025 budget law and are expected to be updated shortly. Previous years' rates included additional tiers at 8.5% and 13.60% for income above certain thresholds.

Overseas Department Specifics

Mayotte benefits from certain tax advantages as an overseas department. For instance, company directors can receive a tax allowance of 40% of their income, up to €4,050, as of 2020. Additionally, there are tax reductions or deductions for productive investments in overseas France, and tax credits for productive investments specifically in overseas departments. Furthermore, for foreign workers hired for 12 months or more, a specific tax applies, equivalent to 55% of their salary up to 2.5 times the monthly minimum wage (SMIC), which was €4,417.00 as of January 1, 2024. Shorter contracts or seasonal work have different tax amounts.

General Information Regarding Employer Tax Obligations

The information above is current as of February 5, 2025, and may be subject to change with updates to legislation and regulations. Employers should consult with local tax authorities or legal experts for precise calculations and compliance. The tax system in Mayotte is closely aligned with the French system and designed to support social welfare programs, such as healthcare, pensions, family allowances and unemployment benefits. Both employers and employees make contributions to fund these programs, ensuring a robust social safety net. Regular updates and adjustments are made to the tax system to reflect economic changes and policy goals. It's important for businesses and individuals to stay informed about these changes to ensure compliance and maximize available benefits. Local authorities and official resources, like the URSSAF and the French tax administration website (impots.gouv.fr), provide comprehensive information on regulations, rates, and procedures related to employer obligations. These resources are valuable tools for businesses operating in Mayotte. It is crucial for employers to maintain accurate records of payroll, tax deductions, and social security contributions to meet compliance requirements.

In Mayotte, employee tax deductions primarily consist of income tax and social security contributions, withheld by the employer under the PAYE (Pay-As-You-Earn) system.

Income Tax

Income tax in Mayotte follows the French progressive tax system. The exact rates for 2025 are pending the enactment of the 2025 budget bill. As of January 1st, 2025, the rates remain aligned with the 2024 structure until the new legislation is published in the Official Journal. Any changes will be reflected once the 2025 budget law is finalized.

Social Security Contributions

Employers in Mayotte deduct social security contributions directly from employee salaries. These contributions fund several programs:

• Health Insurance: Provides healthcare coverage for employees. Rates are determined by several factors, including income and individual circumstances.
• Family Allowances: Supports employees with children.
• Pension: Contributes towards the employee's retirement pension.
• Occupational Accidents and Illness: Covers medical expenses and lost income resulting from workplace incidents.
• Unemployment Insurance: Provides financial assistance to employees who lose their jobs.

Other Deductions

In addition to income tax and standard social security contributions, other potential deductions from employee salaries include contributions towards complementary retirement plans (if applicable), and partial reimbursement of employee transportation costs.

Employer Contributions

Mayotte employers also contribute to their employees' social security and other benefits, matching certain employee contributions and bearing the full cost for others. The employer's contribution is calculated as a percentage of the employee's gross salary, with specific rates varying according to the type of contribution, the employer's industry, and other factors.

Reporting and Payment

Employers are legally obligated to declare and remit all withheld income tax and social security contributions to the appropriate French authorities, usually the URSSAF (Unions de Recouvrement pour la Sécurité Sociale et les Allocations Familiales). Strict deadlines and procedures are in place to ensure timely payments and accurate reporting. It is important to comply with these requirements to avoid penalties.

It's crucial to remember that the provided information is accurate as of today, February 5, 2025, and might change depending on new legislation or official updates. Consulting official sources or a tax professional is essential for staying up-to-date with the most current regulations.

In Mayotte, Value Added Tax (VAT) is currently not applicable. While import duties may still apply to goods entering Mayotte, VAT is not levied on sales or services within the territory.

VAT Rates and Registration

• VAT Rate: 0% (Not applicable).
• Registration Threshold: Not applicable as VAT is not implemented.
• Exempt Goods and Services: While the concept of VAT exemptions doesn't apply in a no-VAT environment, it is important to understand that all goods and services are effectively untaxed concerning VAT. Import duties and other taxes may still apply.

Filing and Payment

• Filing Requirements: No VAT returns or filings are required.
• Deadlines: Not applicable.

Other Relevant Taxes

Although Mayotte does not have VAT, other taxes and duties may apply. It's important to check specific regulations related to:

• Import Duties: These may be levied on goods imported into Mayotte. Rates and regulations are subject to change and should be verified with the relevant customs authorities.
• Other Local Taxes: Mayotte may have other applicable local taxes, such as property taxes or business taxes. Businesses operating in Mayotte or individuals considering transactions involving Mayotte should consult with tax advisors or local authorities for specific guidance on all applicable tax regulations.

Mayotte offers various tax incentives to businesses and individuals, primarily focused on stimulating economic activity and promoting specific sectors. As of February 5, 2025, the key incentives available include the Competitiveness and Employment Tax Credit (CICE), a VAT refund program for tourists, and tax credits for investments in green energy projects. Additional provisions exist for property taxes, family allowances, and unemployment assistance.

Competitiveness and Employment Tax Credit (CICE)

This tax credit is designed to encourage businesses in Mayotte to hire and retain employees.

• Eligibility: Companies subject to corporate income tax (IS) or personal income tax (IR), as well as tax-exempt entities like Young Innovative Companies (JEIs), new companies, and those operating in specified zones (ZFU_TE, BER, DRA, Free zones of overseas departments, RRZ/FRR, BUD, PDA). Micro-entrepreneurs are not eligible.
• Rate: 9% of employee remuneration up to 2.5 times the SMIC (minimum wage).
• Calculation: Based on total annual remuneration not exceeding 2.5 times the SMIC, considering full-time, part-time, and part-year employees.
• Reporting: Declarations are made to the Social Security Fund of Mayotte (CCSM) and the tax administration through the registered social declaration (DSN).

Value Added Tax (VAT) Refunds for Tourists

Tourists can claim VAT refunds on certain purchases made in Mayotte.

• Eligibility: Residents of the French overseas departments (Guadeloupe, French Guiana, Martinique, Mayotte, Réunion), and employees of transport companies traveling for professional reasons. Individuals residing in the European Union (EU) are also eligible with some exceptions for VAT refunds. Purchases must be for personal use and must meet set conditions.
• Qualifying Purchases: Retail purchases exceeding €100 made in the same shop on the same day. Excludes certain goods like tobacco, petroleum products, weapons, cultural goods, and means of transport.
• Procedure: Contact the local French Customs office for details on how to obtain your refund.

Tax Credits for Green Energy Investments

Incentives are available for investments in eligible green energy projects in Mayotte.

• Eligibility: Dependent on project specifics and company size, this may vary.
• Rate: Ranges from 20% to 60%, determined by company size and investment location.
• Qualifying Investments: Tangible assets (buildings, equipment, land) and intangible assets (patents, licenses, intellectual property).
• Application: Projects with authorization applications submitted between September 27, 2023, and December 31, 2025.

Other Tax Provisions

• Property Tax: Individuals with gross annual property income exceeding €15,000 are subject to a specific tax regime. Taxable income is the difference between revenue and eligible expenses.
• Family Allowances: Administered by the CSSM (Caisse de Sécurité Sociale de Mayotte), these are available to residents of Mayotte who do not receive similar benefits from other sources.
• Unemployment Assistance (ARE-M): Available to those involuntarily unemployed, registered as jobseekers, residing in Mayotte, having worked a minimum period, and physically fit for employment.

General Tax Information for Mayotte

Mayotte, as an overseas department of France, generally follows French tax regulations, although some specific provisions apply. The primary taxes include income tax, VAT, property taxes, and social security contributions. Businesses operating in Mayotte are subject to corporate income tax, while individuals pay personal income tax. VAT rates are generally aligned with mainland France, with some variations for certain goods and services. Property taxes are levied on both built and unbuilt properties. Finally, both employers and employees contribute to the social security system, covering areas such as healthcare, pensions, and family allowances. It is important to stay updated on any changes to the tax laws, as they are subject to revisions. Consulting official government resources and tax professionals is recommended for detailed information.