Country Name: Haiti
Currency: Haitian Gourde (HTG)
Primary Tax Authority: Direction Générale des Impôts (DGI) – General Directorate of Taxes
Key Legislation:
- Income Tax Law
- Value Added Tax Law (Taxe sur la Valeur Ajoutée – TVA)
- Corporate Tax Law
- Tax Code (Code Général des Impôts)
Fiscal Authority Allocation
Centralized Fiscal System:
Haiti operates a centralized tax system, with the General Directorate of Taxes (DGI) responsible for administering and collecting taxes, including corporate income tax (CIT), personal income tax (PIT), and value-added tax (TVA). Local governments may collect property taxes and certain municipal fees, but most tax revenues are managed by the central government.
Corporate Income Tax (CIT)
Standard Rate: 30%
Haiti levies a corporate income tax rate of 30% on net taxable income for resident companies. Non-resident companies are taxed on Haiti-sourced income.
Corporate Forms and Taxation:
- Corporation (Société Anonyme – SA): The most common corporate form, subject to the 30% CIT rate.
- Limited Liability Company (Société à Responsabilité Limitée – SRL): Typically used by smaller businesses, also subject to the 30% CIT rate.
- Branches of Foreign Companies: Taxed at the same 30% CIT rate on Haiti-sourced income.
Exemptions and Incentives:
- Free Zones: Companies operating in designated free zones benefit from CIT exemptions for a specified period, as well as exemptions from import duties and other taxes.
- Investment Incentives: Haiti offers investment incentives in key sectors, such as tourism, manufacturing, and agriculture, including tax holidays and reduced rates of CIT.
Goods and Services Tax (GST) / Value-Added Tax (TVA)
Standard Rate: 10%
Haiti applies a value-added tax (TVA) at a standard rate of 10% on most goods and services. TVA is levied on the sale of goods, provision of services, and imports.
Exemptions:
Basic food items, medicines, educational services, and healthcare services are exempt from TVA. Exports are zero-rated, allowing businesses to reclaim TVA paid on inputs used to produce goods for export.
Personal Income Tax (PIT)
Progressive Rates:
Haiti applies progressive personal income tax rates as follows:
- Up to HTG 60,000: 10%
- HTG 60,001 to HTG 240,000: 15%
- Above HTG 240,000: 30%
Dividends:
Dividends paid to residents and non-residents are subject to a 15% withholding tax.
Additional Mandatory Contributions
Social Security Contributions:
Employers and employees are required to contribute to Haiti’s social security system, which covers pensions, healthcare, and unemployment benefits.
- Employer Contribution: 6% of gross salary.
- Employee Contribution: 2% of gross salary.
Withholding Taxes
- Dividends: 15%
- Interest: 15%
- Royalties: 30%
Withholding tax rates may be reduced under Haiti’s double taxation agreements (DTAs).
Transfer Pricing Rules
Haiti does not have formal transfer pricing regulations, but related-party transactions are expected to comply with international norms and be conducted at arm’s length.
Special Tax Regimes
- Free Zones: Companies operating in free zones benefit from significant tax incentives, including CIT and customs duty exemptions. These zones are aimed at attracting foreign investment in manufacturing and export-oriented industries.
- Tourism Incentives: Companies investing in tourism development projects may be eligible for tax holidays, VAT exemptions, and reduced import duties on tourism-related goods and services.
- Renewable Energy Incentives: Haiti is actively promoting investments in renewable energy, offering tax incentives such as CIT exemptions, VAT reductions, and customs duty exemptions for renewable energy projects.
Other Taxes
- Real Estate Tax: Property taxes are levied by local governments and generally range from 0.5% to 1.5% of the property’s assessed value, depending on the location and use of the property.
- Capital Gains Tax: Capital gains are taxed as ordinary income and subject to the applicable CIT or PIT rates.
- Excise Taxes: Haiti imposes excise taxes on specific products, including alcohol, tobacco, and fuel.
Double Taxation Agreements (DTAs)
Haiti has signed a limited number of double taxation agreements (DTAs), primarily with Caribbean and Latin American countries. These agreements help reduce withholding taxes on dividends, interest, and royalties, and prevent the double taxation of cross-border income.
Local Taxes
Local municipalities in Haiti collect property taxes and certain municipal fees. However, the General Directorate of Taxes (DGI) is responsible for the administration and collection of most major taxes, including CIT, PIT, and VAT.
Compliance and Reporting
Annual Filing:
Corporate tax returns must be filed by March 31st of the following tax year. Personal income tax returns are due by the same date. The tax year in Haiti follows the calendar year.
Penalties for Late Filing:
Penalties for non-compliance or late filing include interest on overdue taxes and fines. Interest rates on unpaid taxes are typically set at 1.5% per month, with additional penalties for significant delays.
Recent Developments
Economic Reforms and Investment Promotion:
Haiti has introduced various reforms aimed at improving the business climate and attracting foreign investment, including incentives for businesses in key sectors such as agriculture, tourism, and manufacturing. The government has also focused on improving tax compliance and reducing informality in the economy.
Infrastructure and Renewable Energy Projects:
To address its energy needs and reduce reliance on imported fossil fuels, Haiti is actively promoting renewable energy projects. Investors in solar, wind, and hydroelectric energy projects are offered tax incentives, including exemptions on CIT, VAT, and import duties.
Post-Disaster Tax Relief:
In the aftermath of natural disasters, the Haitian government has occasionally introduced tax relief measures to aid affected businesses and individuals, including temporary tax deferrals and reductions in customs duties.
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