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Q: Taxes in French Polynesia ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: Taxes in French Polynesia
Category: Business and Money > Finance
Asked by: stantheman2-ga
List Price: $80.00
Posted: 14 Apr 2005 10:01 PDT
Expires: 14 May 2005 10:01 PDT
Question ID: 509214
I earn money with my website.
My website is not a corporation.
I don't really wish to incorporate myself ( hate paper work ).
I don't have any employees.

I have a French passeport.
For now I live in Montreal ( Canada ).
I have a Canadian passeport.
My father lives in French Polynesia ( Tahiti ).
So I can easely become a French Polynesia resident ( I think ).
I don't wish to spend all year long at Tahiti.

How much taxes on my website earnings will I pay ?
Am I allowed to spend a couple of months in France ? If so how long ?
Am I allowed to spend a couple of months in Canada ? If so how long ?
What must be the minimum length of my stay in French Polynesia ?
Answer  
Subject: Re: Taxes in French Polynesia
Answered By: hummer-ga on 14 Apr 2005 13:15 PDT
Rated:5 out of 5 stars
 
Hi stantheman2,

I am going to assume that each question you've asked is in regards to
income tax. If I've assumed incorrectly, please post a clarification
before closing and rating my answer and I will reply as soon as
possible.


1) How much taxes on my website earnings will I pay ?

There is no income tax on personal income in French Polynesia.

"French Polynesia has its own taxation system which can be very
advantageous for individuals: there is no personal income tax, no tax
on inheritance and no capital tax."
http://www.tcsp.com/spto/export/sites/SPTO/investment/tahiti.shtml

"...there is no income tax in French Polynesia..."
http://www.thetahititraveler.com/general/socecono.asp

2) Am I allowed to spend a couple of months in France ? If so how long ?

Sure, a couple of months would be fine as long as you don't keep a
home in France. If you stay in France for at least 183 days, you will
have to report your income there.

Tax Liability In France
You are tax liable in France if one of the following applies:
- You spend 183 days or more in France in one calendar year
- Your permanent home or principal residence is in France
- The source of your professional income is in France, unless it
concerns a secondary source of income and is part of foreign business
activities.
Your main source of investment, income or business is in France 
http://www.intransit-international.com/life_paris_tax.html

3) Am I allowed to spend a couple of months in Canada ? If so how long ?

Sure, a couple of months would be fine as long as you don't have
strong residential ties to Canada (a home, dependants, etc) and stay
for 183 days.

Residency status
You're a deemed resident of Canada for tax purposes if you:
    * stay in Canada for 183 days or more (the 183-day rule) in the tax year;
    * don't have residential ties with Canada; and
    * aren't considered a resident of another country under the terms
of a tax treaty between Canada and that country.
Your tax obligations
If you're a deemed resident of Canada for the tax year, you:
    * may have to file a Canadian income tax return for that tax year
(for more information, please see "Do you have to file a return?" on
page 8 of the General Income Tax and Benefit Guide for Non-Residents
and Deemed Residents of Canada
    * must report "world income" (income from all sources, both inside
and outside Canada) for the entire tax year
    * can claim all deductions and non-refundable tax credits that apply to you
    * are subject to federal tax and instead of paying provincial or
territorial tax you'll pay a federal surtax
    * are eligible to apply for all federal tax credits, but you
cannot claim provincial or territorial tax credits.
http://www.cra-arc.gc.ca/tax/nonresidents/individuals/deemed-e.html#183

-- French version:
http://www.cra-arc.gc.ca/tax/nonresidents/individuals/deemed-f.html

Residency status
http://www.cra-arc.gc.ca/tax/nonresidents/individuals/temporary-e.html

-- French version:
http://www.cra-arc.gc.ca/tax/nonresidents/individuals/temporary-f.html

Determination of an Individual's Residence Status
http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.html

-- French version:
http://www.cra-arc.gc.ca/F/pub/tp/it221r3-consolid/it221r3-consolid-f.html

4) What must be the minimum length of my stay in French Polynesia ?

For income tax purposes it doesn't matter because there is no income tax.


Additional Links of Interest:

"Visas: Only French citizens can enter French Polynesia without a
passport and the visa requirements are much the same as for France
itself. Western European and Scandinavian citizens are allowed to stay
for up to three months without a visa. Citizens of Canada... can stay
up to one month without a visa..."
http://www.shoestring.co.kr/dest/pac/tah.htm

Only French citizens can enter French Polynesia without a passport"
http://travelmax.travelcuts.com/sisp/?fx=destination&loc_id=131128&section=dp_intro

Tahiti and French Polynesia
http://gohawaii.about.com/cs/frenchpolynesia/a/fp_history.htm 

Institut Statisque de Polynesie Francaise (ISPF)
http://www.ispf.pf/(fxy2qsjhqychkrqnpsz2h055)/index.aspx?choix=bref

I hope this meets your needs.

Thank you,
hummer

Google Search Terms Used:

canada "income tax" residency
france "income tax" residency
french polynesia "no income tax"
tahiti "income tax"
tahiti residency french citizen
stantheman2-ga rated this answer:5 out of 5 stars

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