Tax laws New Caledonia (France)
New Caledonia, an overseas territory of France located in the southwest Pacific, possesses a distinct tax system that operates independently from France's national tax laws. The local government has the authority to levy taxes and contributions for its own benefit, as well as for the provinces and communities within its jurisdiction.
1. Personal Income Tax:
Taxable Income Categories: Income is divided into categories such as wages, business profits, and property income.
Progressive Tax Rates: After applicable deductions, income is taxed at progressive rates. As of 2025, the tax brackets for residents are as follows:
| Taxable Income (XPF) | Tax Rate (%) |
|---|---|
| Up to 1,000,000 | 0 |
| 1,000,001 to 1,800,000 | 4 |
| 1,800,001 to 3,000,000 | 12 |
| 3,000,001 to 4,500,000 | 25 |
| Above 4,500,000 | 40 |
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Family Quotient System: This system allows for income splitting based on family status, potentially reducing the overall tax burden. However, the tax relief from this system is generally capped at XPF 300,000.
2. Corporate Income Tax:
Standard Rate: The corporate income tax rate is 15%.
Real Estate Capital Gains: Gains from the sale of real estate are taxed at a rate of 20%, with an additional 4% contribution to the Social Security Fund, totaling 24%.
3. Value-Added Tax (VAT):
Standard Rate: The standard VAT rate, known locally as the Taxe Générale à la Consommation (TGC), is 11%. This rate was introduced as part of a tax reform aimed at modernizing the fiscal system.
Registration Requirements: Businesses with an annual turnover exceeding XPF 15 million are required to register for VAT. Those below this threshold may opt for voluntary registration to recover input VAT on purchases.
4. Other Taxes:
Capital Gains Tax: Long-term capital gains are generally taxed at the corporate income tax rate of 15%. However, gains from the sale of building land and similar assets are taxed at a higher rate of 25%.
Wealth Tax: There is no net wealth tax imposed in New Caledonia.
5. Tax Administration:
Tax information and declarations are managed by the Direction des Services Fiscaux. For comprehensive and up-to-date information, individuals and businesses should consult their official resources.
Note: Tax laws and regulations are subject to change. It is advisable to consult with local tax professionals or the tax authorities for the most current information and personalized guidance.
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