Unbiased look at the Sint Maarten Elections
MARIGOT--A decree concerning a new income tax reduction rate applicable to the hotel renovation sector was published recently in the Official Journal.
Up to now the hotel industry in St. Martin enjoyed an income tax reduction rate of 38.25 per cent for hotel renovation and restoration work while it was 45.9 per cent in other Collectivités under Article 74 of the French Constitution such as New Caledonia, Wallis- et-Futuna, St. Pierre-et-Miquelon, and French southern and Antarctic territories.
St. Martin is now in line with those territories at 45.9 per cent.
To compensate for the removal of hotel renovation incentives planned in the 2015 Finance Law, St. Martin was the first beneficiary of this financial aid, using up to 30 per cent of the tax credits available in 2013.
MP for St. Martin and St. Barths Daniel Gibbs pointed out the injustice to which St. Martin was subjected, indicating it was unfair for St. Martin to be subjected to a lower rate compared to the one paid by other Collectivités with the same status, under the tax exemption mechanism of Article 199, clause B.
“As a Collectivité St. Martin also benefits from less tourism development incentives compared to other French overseas departments, particularly in the line of tax credits; i.e., tax credit for employment competitiveness and tax credit for productive investment,†said Gibbs.
