French General Code of Local Authorities
In forceI. - The collectivity of Saint-Martin shall exercise the powers it derives from 1° of I of Article LO 6314-3 in matters of taxes, duties and fees in compliance with the following provisions:
1° Natural persons whose tax domicile was, in the five years preceding their establishment in Saint-Martin, established in a department of metropolitan France or overseas France may only be considered as having their tax domicile in Saint-Martin after having resided there for at least five years.
Corporate entities whose tax domicile was, in the five years prior to their establishment in Saint-Martin, established in a metropolitan or overseas department may only be considered as having their tax domicile in Saint-Martin after having set up the seat of their effective management there for at least five years or when they have set up the seat of their effective management there and are controlled, directly or indirectly, by natural persons residing in Saint-Martin for at least five years ;
1° bis Individuals or legal entities whose tax domicile is in a metropolitan or overseas department, or who are deemed to have it by virtue of 1°, are subject to the taxes in force in these departments.
Without prejudice to the provisions of the previous paragraph, natural or legal persons having their tax domicile in a department of metropolitan France or overseas France, or being deemed to have it by virtue of 1°, are subject to the taxes defined by the collectivity of Saint-Martin for income or wealth finding their source on the territory of this collectivity.
2° The collectivity of Saint-Martin shall transmit to the State any information useful for the application of its regulations relating to taxes of any kind or denomination and for the execution of the exchange of information clauses provided for by the tax treaties concluded by France with other States or territories ;
3° The collectivity of Saint-Martin shall exercise its powers in respect of taxes, duties and levies without prejudice to the rules laid down by the State, for Saint-Martin, in respect of social security contributions and other levies intended for the financing of social protection and the amortisation of the social debt, by analogy with the rules applicable in Guadeloupe.
I bis. - The terms of application of I are specified by an agreement concluded between the State and the collectivity of Saint-Martin with a view to preventing double taxation and combating tax fraud and evasion.
Prior to the entry into force of this agreement, individuals or legal entities whose tax domicile is in a metropolitan or overseas department or in Saint-Martin are entitled to a tax credit chargeable against the tax due in the territory where their tax domicile is located in respect of the financial year or calendar year during which the credit is recorded, in respect of income from the other territory.
This tax credit, equal to the tax actually paid in respect of this income in the other territory, may not exceed the fraction of tax due in respect of this same income in the territory in which they are domiciled for tax purposes. Correspondingly, the tax paid in respect of this income in the other territory is not deductible from this same income in the territory where they are domiciled for tax purposes.
II. - The assessment, control and collection of taxes, duties and other levies are carried out by agents of the State under the conditions set out in an agreement between the State and the local authority. This agreement sets out the terms and conditions for the remuneration of State agents.
Direct taxes and assimilated taxes of the collectivity are collected by virtue of rolls made enforceable by the State representative in the collectivity. The latter may delegate his powers to the director of tax services competent for the application of the tax in the collectivity of Saint-Martin.
Staff from the collectivity of Saint-Martin, placed under the authority of the State administration, may assist in the execution of the operations referred to in the first paragraph.
III. - Without prejudice to the exercise by the collectivity of its jurisdiction in respect of taxes, duties and fees, the State may institute taxes intended to be collected in connection with the performance of missions of general interest incumbent upon it within the scope of its jurisdiction.
An agreement concluded between the State and the collectivity shall specify the terms and conditions for the application of the first paragraph of this III in order to determine the terms and conditions for the collection and management of revenue intended for the financing of air safety.
