Employers have a significant responsibility towards social security contributions. These contributions include health insurance, retirement, disability, survivor benefits, family allowances, unemployment insurance, and work-related accidents & occupational diseases. The rates for each contribution type vary and are typically paid monthly.

Apprenticeship Tax

The apprenticeship tax is a tax to fund vocational training programs. The rate is generally around 0.44% of the company's total payroll.

Additional Payroll Taxes

In addition to the above, employers also have to pay additional payroll taxes. These include the Professional Training Contribution, which supports employee training and development, and the Housing Effort Contribution, which finances housing initiatives.

In Saint Pierre and Miquelon, a progressive income tax is levied on an individual's earnings. All residents who receive income are eligible for this tax. The rates are determined by progressive tax brackets, which are similar to those in mainland France. The income tax is calculated on a yearly basis and is deducted directly from employee paychecks.

Social Security Contributions

Employees contribute to several social security funds. These include Health Insurance, Old-Age Pension, Disability Insurance, and Unemployment Insurance. All salaried employees are eligible for these contributions. The contribution rates are percentages of an employee's gross salary.

Generalized Social Contribution (CSG)

The Generalized Social Contribution (CSG) is a tax levied on various sources of income. These sources include salaries, investments, and certain social benefits. The CSG has several rates depending on the type of income.

Additional Deductions

The Contribution pour le Remboursement de la Dette Sociale (CRDS) is a tax used to repay the country's social debt. This is an additional deduction that employees should be aware of.

Saint Pierre and Miquelon, unlike mainland France and the European Union, enjoys a special status that exempts it from the Value-Added Tax (VAT) system. This exemption potentially creates a competitive business environment.

Local Consumption Tax (Octroi de Mer)

Despite being exempt from VAT, services provided in Saint Pierre and Miquelon may be subject to the Octroi de Mer, a local consumption tax. The rates of the Octroi de Mer vary depending on the type of service.

Exemptions & Special Categories

Certain services may be exempt or have special rates under the Octroi de Mer. For details, it's advisable to seek information from the Directorate General of Customs and Indirect Rights (DGDDI) as their rules apply to Saint Pierre and Miquelon.

Filing Procedures

Businesses providing taxable services are required to file and pay Octroi de Mer. The procedures and deadlines for this are managed by the local tax authorities in Saint Pierre and Miquelon.

Businesses in Saint Pierre and Miquelon enjoy a significantly lower corporate income tax rate compared to mainland France. The standard rate in France is around 25%, while Saint Pierre and Miquelon boasts a rate of just 15%.

Reduced Corporate Income Tax

The lower corporate income tax rate is a significant advantage for businesses operating in Saint Pierre and Miquelon. This reduction in tax burden can lead to increased profitability and competitiveness.

Exemption from Value-Added Tax (VAT)

Saint Pierre and Miquelon is exempt from the Value-Added Tax (VAT) system. This exemption translates to a significant cost advantage for businesses, as VAT can add a layer of complexity and expense.

Special Focus on Certain Sectors

The government of Saint Pierre and Miquelon may offer additional tax breaks or simplified procedures for businesses operating in priority sectors. These sectors include tourism, information and communication technologies (ICT), renewable energy, and fishing and seafood processing.

Limited Information and Application Process

Due to the territory's small size and close ties to France, there isn't a centralized, well-defined application process for tax incentives. It's recommended to contact the Economic Development Agency of Saint-Pierre-et-Miquelon to explore potential benefits and any specific requirements for your business sector.