New Caledonia

France and the United States (US) sign bilateral agreement on the implementation of the Foreign Account Tax Compliance Act (FATCA)

New-Caledonia and the United States signed a bilateral intergovernmental agreement (IGA) intended to implement FATCA. FATCA was enacted by the United States in 2010 to combat offshore tax evasion by US persons.

The New Caledonian government has committed to drafting local laws and regulations to implement FATCA among all financial institutions resident in New Caledonia. Broadly speaking, the banking, life insurance, and asset management industries will be most affected, but certain estate (patrimonial) vehicles, holding companies, as well as hedging, finance, and treasury centres of non-financial groups could also be impacted, depending on the nature of their activities.

New-Caledonia has also instituted requirements for financial institutions in relation with foreign tax residents' account holders.

Cross-border arrangements disclosure

New-Caledonia has intoduced reporting obligations to the local tax authorities that focus on cross‑border tax‑planning arrangements exhibiting characteristics or hallmarks indicative of tax‑avoidance risks, thereby enabling more effective audits.

Trust disclosure

New-Caledonia has introduced reporting obligations for trusts where the settlor or any beneficiary has their tax domicile in New Caledonia, or where the trustee of a foreign trust acquires property in New Caledonia, enters into legal or economic relations in New Caledonia, or has their own tax domicile in New Caledonia.

This obligation includes the filing of an annual declaration of the value of the trust, as well as the reporting of trust-related events, which must be submitted within one month following the occurrence of the relevant event.

Failure to comply with these obligations is punishable by a fine of XPF 2,400,000 (EUR 20,112)