Haiti - Economy : Significant decreases in property taxes and income tax
06/11/2015 13:26:40
To consecrate and generalize the program of Pacts for Employment and Economic Growth Inclusive (PECEI), the Government submitted to the Nation a very ambitious budget plan 2015-2016 called the citizen budget.
Its main aim is to strengthen the financial autonomy of the state, that is to say, reducing the country's dependence on external aid. A range of measures have been taken to streamline the management of public finances, improve the performance of tax administrations and boost productive sectors with strong potential.
In this budget, it proceeded among other, to drastic tax cuts in order to reduce any incentive to fraud. These include the contributions of land built properties (contributions fonci?res des propri?t?s b?ties - CFPB) and the tax on the income of companies and natural persons not domiciled in the country.
Land built properties (CFPB) :
Until September 30, 2015, the tax rate was 15% on the rental value.
In the new 2015-2016 budget, the current situation after 30 September 2015, the following rates are applied to the market value:
Until 1,500,000 de Gourdes (0,12%)
from 1,500,001 to 3,000,000 Gourdes (0,14%)
from 3,000,001 to 8,000,000 Gourdes (0,16 %)
from 8,000,001 to 20,000,000 Gourdes (0,18%)
20,000,001 to Gourdes and more (0,20 %)
Exemple I :
For a house worth 150,000 US dollars, equivalent to ? 7.5 million gourdes.
Suppose it to be rented monthly at a rate of 1,000 US dollars (? 50,000 gourdes), the owner had to pay until September 30, 2015, a 90,000 gourdes rental tax at 15% of the rental value.
In the new budget, after September 30, 2015, for the same house, the owner must pay a tax of 12,960 gourdes (rate of 0.16% on the market value), about 7 times cheaper.
Exemple II :
Homeowners whose value is equal to or less than 1.5 million gourdes and leased to 5,000 gourdes a month
paid before 30 September 2015, a tax of 9,000 gourdes. Today this tax is reduced to 1,800 gourdes, or about 5 times cheaper.
"Droit de Fermage" of the private assets of the State :
At September 30, 2015, the right to rent was 6% of the market value of the property.
Today, it is :
25 gourdes per m2 for land in residential areas;
3,500 gourdes per hectare for agricultural land undeveloped;
7,500 gourdes per hectare for serviced land agricultural.
Exemple I :
A plot of 1,000 m2 with a market value of 2,000,000 Gourdes
Until September 30, 2015, with a tax rate of 6%, the tax was 120,000 gourdes.
Today, the tax is 25,000 gourdes, about 5 times cheaper.
Exemple II :
For a plot of 500m2 worth of one million gourdes, was paid at September 30, 2015, 60,000 gourdes. Currently, for the same land, it pays more than 12,500 gourdes, about 5 times less.
Income tax:
The companies, companies and individuals not domiciled in Haiti paid until September 30, 2015, a 20% tax on the amount of service contracts. After September 30 the tax is 5% for corporations and business and 15% for individuals. This reduces the weight of double taxation and should facilitate foreign investment in the country.
06/11/2015 13:26:40
To consecrate and generalize the program of Pacts for Employment and Economic Growth Inclusive (PECEI), the Government submitted to the Nation a very ambitious budget plan 2015-2016 called the citizen budget.
Its main aim is to strengthen the financial autonomy of the state, that is to say, reducing the country's dependence on external aid. A range of measures have been taken to streamline the management of public finances, improve the performance of tax administrations and boost productive sectors with strong potential.
In this budget, it proceeded among other, to drastic tax cuts in order to reduce any incentive to fraud. These include the contributions of land built properties (contributions fonci?res des propri?t?s b?ties - CFPB) and the tax on the income of companies and natural persons not domiciled in the country.
Land built properties (CFPB) :
Until September 30, 2015, the tax rate was 15% on the rental value.
In the new 2015-2016 budget, the current situation after 30 September 2015, the following rates are applied to the market value:
Until 1,500,000 de Gourdes (0,12%)
from 1,500,001 to 3,000,000 Gourdes (0,14%)
from 3,000,001 to 8,000,000 Gourdes (0,16 %)
from 8,000,001 to 20,000,000 Gourdes (0,18%)
20,000,001 to Gourdes and more (0,20 %)
Exemple I :
For a house worth 150,000 US dollars, equivalent to ? 7.5 million gourdes.
Suppose it to be rented monthly at a rate of 1,000 US dollars (? 50,000 gourdes), the owner had to pay until September 30, 2015, a 90,000 gourdes rental tax at 15% of the rental value.
In the new budget, after September 30, 2015, for the same house, the owner must pay a tax of 12,960 gourdes (rate of 0.16% on the market value), about 7 times cheaper.
Exemple II :
Homeowners whose value is equal to or less than 1.5 million gourdes and leased to 5,000 gourdes a month
paid before 30 September 2015, a tax of 9,000 gourdes. Today this tax is reduced to 1,800 gourdes, or about 5 times cheaper.
"Droit de Fermage" of the private assets of the State :
At September 30, 2015, the right to rent was 6% of the market value of the property.
Today, it is :
25 gourdes per m2 for land in residential areas;
3,500 gourdes per hectare for agricultural land undeveloped;
7,500 gourdes per hectare for serviced land agricultural.
Exemple I :
A plot of 1,000 m2 with a market value of 2,000,000 Gourdes
Until September 30, 2015, with a tax rate of 6%, the tax was 120,000 gourdes.
Today, the tax is 25,000 gourdes, about 5 times cheaper.
Exemple II :
For a plot of 500m2 worth of one million gourdes, was paid at September 30, 2015, 60,000 gourdes. Currently, for the same land, it pays more than 12,500 gourdes, about 5 times less.
Income tax:
The companies, companies and individuals not domiciled in Haiti paid until September 30, 2015, a 20% tax on the amount of service contracts. After September 30 the tax is 5% for corporations and business and 15% for individuals. This reduces the weight of double taxation and should facilitate foreign investment in the country.
irate: