SPECIAL CASES TAX TREATY BETWEEN FRANCE AND NEW CALEDONIA New Caledonia's tax autonomy has given rise to a tax treaty signed between France and New Caledonia to avoid double taxation in respect of income tax, corporate income tax and registration fees. Dividends distributed by a company based in New Caledonia, which are taxed in the territory, give entitlement to a tax credit applied to the tax payable in France by the recipient company. If the recipient company is subject to corporate income tax, the withholding tax is capped at 5%. For more information, click here DECLARATION OF WITHHOLDING TAX The withholding tax applies to remuneration paid to employees posted to New Caledonia by companies established outside New Caledonia. For more information, click here TAX CREDITS & REDUCTIONS These allow all or part of an investment in certain sectors to be deducted from tax. There are several types of investment tax credit: - Export tax credit (50% of eligible expenditure, up to a limit of XPF 50 M / €420 K) - Tax credit for investment in provincial semi-public holding companies - Tax credit for investment in a venture capital fund (Fond commun de placement à risque, FCPR - 50% of the subscription). A tax credit for research and innovation expenditure (CIRI) is available for up to 30% of expenditure, capped at XPF 5 M (€420 K). 8 - TAX ENVIRONMENT 90
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