Crowdfunding - Which tax system for the DOM-COM?

You have participated in a crowdfunding operation and live in an overseas collectivity (COM) or in an overseas department (DOM), what is the tax system for DOM-COM? Which tax system are you subject to? Are the tax deductions made by the crowdfunding platform or are they to be declared by you?

WHAT TAXATION for investors residing in a DOM?

Mainland France, the coastal islands and Corsica as well as the overseas departments (Guadeloupe, Guyana, Martinique, Reunion and Mayotte) are considered as belonging to "fiscal France". Investors residing in the overseas departments are therefore subject to metropolitan tax rules and therefore to the single flat-rate levy ("PFU" or "flat tax flat tax ") under the same conditions as investors residing in mainland France: a 30% levy corresponding to income tax and social security contributions.

Which tax system for investors living in a COM?

French Polynesia, New Caledonia, the French Southern and Antarctic Lands, the Wallis and Futuna Islands, Saint-Pierre-et-Miquelon, Saint-Barthélemy and Saint-Martin have the status of overseas collectivities (COM) and are subject to the principle of "legislative speciality" named in Article 74 of the Constitution. In other words, the laws and regulations of metropolitan France do not apply to them unless they are expressly mentioned. These COMs have a particular fiscal autonomy vis-à-vis "fiscal France".

The European regulations on the coordination of social security systems (social security contributions) have a European perimeter and should therefore apply, but there is no specific mention of their application in the COM. Consequently, investors residing in an Overseas Community are not subject to any withholding tax on their interest and are considered as foreign residents for tax purposes .

It should be noted, however, that the General Code of Local Authorities provides for specificities for Saint-Barthélemy and Saint-Martin. Indeed, people who have not been resident on the island for at least 5 years and whose previous tax residence was in a department of metropolitan France or overseas are considered to be domiciled for tax purposes in France and therefore subject to the PFU.

If you have received interest from a crowdfunding operation and you live in an overseas department (DOM), you are therefore subject to the French tax system and thus to the Single Tax Levy. This levy and its declaration to the tax authorities are made by the platform. You do not need to take any steps.

If you live in an overseas community, you are considered a foreign tax resident and therefore not subject to the PFU. The platform will pay you 100% of the interest generated and will not declare anything about you to the French tax authorities.

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