MIL OSI Translation. French Polynesian to English –
Source: Government of French Polynesia
The Vice-President of Polynesia, Minister of Finance, Teva Rohrfistch, presented on Thursday to elected officials of the Assembly of French Polynesia a tax bill whose purpose is to support Polynesian companies and individuals in the face of consequences of the crisis.
The draft text, which comprises 21 measures, was adopted unanimously by representatives.
Exemptions related to remuneration received during the Covid-19 crisis
All exceptional aid from the Country (DIESE, DESETI, IS, RES, etc.) and from the State (National Solidarity Fund) now benefit from an exemption from all taxes, so that they can be fully intended for support companies in difficulty.
In addition, the Vice-President proposed to exempt from CST the bonuses that employers have decided to pay to their employees as a thank you for their particular investment during the period of Covid-19. These bonuses must be paid during the month of August.
Postponement of a set of legal deadlines
The confinement and the crisis having strongly impacted the lifestyle of Polynesians, the Vice-President proposed to extend the duration of the state of emergency, a set of legal deadlines, and this in the interest of taxpayers.
For example, the deadlines normally granted to Polynesians to submit certain compulsory documents or to make requests for graceful surrender are extended by five months.
In addition, the calculation of default interest is suspended during the state of emergency.
Support for investment projects benefiting from tax exemption
A set of measures adapt the tax rules to cope with the serious economic consequences of the crisis, so that this private investment lever can continue to function under optimal conditions.
First of all, companies having to close because of the crisis when they were subject to a going concern obligation, will be protected from being called into question as soon as they undertake to resume their activity. before December 31, 2020.
Then, all of the project start-up and completion deadlines are extended by one year, in order to allow project leaders to adjust to the consequences of the crisis.
Finally, the Vice-President has put in place, on an exceptional basis, the possibility of finding funders up to two years after the completion of the project. This measure will thus allow all current projects to be finalized without having to have found all their investors during this particularly difficult period.
Support for the pearl farming sector
In accordance with the announcements of the Plan to Safeguard the Economy, the Specific Duty on Exported Pearls (DSPE) has been exempted until the end of 2020.
In addition, access to the status of a free enterprise, which grants a number of advantages to pearl companies, has been facilitated.
Strengthening Assistance for the Settlement of Young Graduates
This aid, which helps young Polynesians holding diplomas to settle locally, has been modified in order on the one hand to facilitate its accessibility, and on the other hand to strengthen the aid given to these young people wishing to work. in Polynesia.
In particular, a new aid system for the importation of equipment essential for their professional activity has been put in place.
Support to the health sector
Occupational therapists, like chiropractors and osteopaths in 2018, will now benefit from VAT exemption.
Indeed, the medical contribution of this profession to people of all ages with disabilities is well established and the government wanted to allow the costs of access to this type of care.
At the same time, customs duties on certain medicines have been reduced in order to reduce the cost of care in Polynesia.
In order to allow hotels to take advantage of this period of downturn in activity to carry out small and medium-scale renovations, the Vice-President has set up an exceptional investment system which allows them, under certain conditions, to initiate rapid renovation work without being subject to the compulsory condition of extending the number of rooms.
In the fishing sector, the Vice-President proposed an exceptional system of exemption from duties and taxes on the importation of new large-scale deep-sea fishing vessels (over 45 meters in length), which cannot be locally built.
Access to the property tax exemption for 10 years
A group of owners who built their primary residence between 2017 and 2021 could have benefited from a 10-year property tax exemption, but did not apply for it on time. They still benefited from a 5-year exemption.
In order to allow them to have access to these 5 additional years of exemption, the Vice-President opened the right to file requests within 5 years after the construction of the dwelling.
Reduction of the Minimum Flat Tax in favor of exporting companies
Polynesian companies carrying out exports, first and foremost pearl farmers, who will be subject to the MFI, will now be able to benefit from a reduction in their tax proportional to the turnover they achieve on export.
This scheme, which already applies to companies making a profit, is therefore extended to loss-making companies.
Reduction of VAT in the catering sector
In order to support a sector particularly affected by the health and economic crisis, but also to simplify the accounts of restaurateurs, the Vice-President proposed aligning all VAT rates related to catering at 5%.
Previously, these rates were 13%, especially for traditional catering.
By reducing this tax burden, the government is stimulating the sector by encouraging all restaurant owners to lower their prices for the benefit of their customers.
Communication of statistical tax data for the benefit of municipalities
In order to make economic forecasts and adjust their social and investment policies, many municipalities have expressed the wish to be able to obtain, from the tax department, a set of tax data enabling them to inform their choices.
From now on, the DICP will be authorized, under certain conditions, to provide a set of fiscal items for statistical purposes. Of course, this data must comply with all the rules relating to data confidentiality and the protection of personal data.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.