New Caledonia

Corporate - Other taxes

Last reviewed - 16 April 2024

General consumption tax (TGC)

 The TGC (taxe Générale sur la consummation) is a value-added tax (VAT)-like tax that is applied to the consumer prices of goods and services since 1 October 2018 in New Caledonia.

 TGC is due on goods sold and services rendered in New Caledonia. There are four rates of TGC:

  • Reduced rate: 3%
  • Specific rate: 6%
  • Normal rate: 11% for all the operations that are not subject to another rate.
  • Higher rate: 22%

Supplies of goods outside New Caledonia and certain specific services invoiced to foreign clients are, in principle, exempt from TGC.

Business-to-business (B2B) suppliers of services are generally taxable at the location of the customer and not at the location of the supplier. For business-to-consumer (B2C) supplies of services, the place of taxation is generally where the supplier is established / where the services are realised.

Some transactions are TGC exempted, such as:

  • Exemptions of transactions for reasons of public interest.
  • Some transactions in relation with real property.
  • Some transactions subject to other taxation, such as insurance premiums tax, tax on financial operations, etc.

Customs duties

Customs duties are levied on the import of goods.

In New Caledonia, these duties, called ‘ad valorem’, range from 0% (‘exempt’) to 20% maximum.

Goods originating from certain countries (‘preferential origin’) may also be exempt from customs duties. This is the case, in particular, for goods imported from metropolitan France, the European Union (EU), or the ‘Pays et territoires d’outre-mer’, provided that their origin is justified in accordance with the conditions laid down by the regulations.

Excise taxes

The license fee (droits de license) applies to businesses and professions whose purpose is the production or sale, in any capacity, of distilled or fermented alcoholic beverages or of fermented hygienic drinks.

There is a tax on alcohol and tobacco applying to alcoholic beverages from local production and to products of the tobacco monopoly.

The domestic consumption tax on local products and manufacturing (taxe sur la consummation intérieure or TCI) applies to alcoholic beverages and products based on alcohol of any origin and source harvested or manufactured in New Caledonia.

Real estate tax

The real estate tax (contribution foncière des propriétés bâties et non bâties) is a tax established on the ownership of land and buildings that varies according to the municipalities, neighborhoods, and type of construction.

The property tax is due for the entire year, without the possibility of splitting, according to the situation existing on 1 January of the tax year, in the name of the owner, the usufructuary, the long-term leaseholder, or the construction leaseholder or similar. Therefore, in the case of a sale during the year, the tax established during the year of sale remains due by the seller.

The tax base depends on the type of land, building, properties and equipment. The applicable rates range between 8.40% for buildings and 0.7875% for unbuilt properties. The tax should be determine based on the reduction applicable and considering the taxation applied by municipalities and provinces.

Please note that:

  • A Municipal Development Tax (Taxe communale d’aménagement) is also applicable to the recipient of a building permit.
  • A tax of 0.3% could apply to deeds that are mortgage related (taxe hypothécaire).
  • A real estate security contribution (contribution de sécurité immobilière) of 0.075% generally applies for the transcription of deeds related to real estate.

Registration duties

Registration fees (droits d’enregistrement), either fixed or proportional, are levied on certain legal transactions: sales of real estate, businesses, donations, inheritances, etc.

They allow to date precisely the formality of registration. The duties are calculated on the sum that represents the amount of the transaction. In case of sale, it is the sale price stipulated or the fair market value if it is higher than the price. For successions or donations, it is the fair market value.

Transfer of goodwill

The transfer of goodwill is subject to a registration duty at a rate of 4% on the part of the transfer price that is higher than XPF 5 million. If the transfer price is under XPF 5 million, a fixed registration fee of XPF 7,000 is applicable.

Transfers of shares

The transfer of shares is subject to registration duty at a rate of 1%, subject to a cap of XPF 500,000.  

Transfer of interest or quotas in legal entities whose capital is not divided into shares

The transfer of interests or quotas in legal entities whose capital is not divided into shares (e.g. Société à responsabilité limitée [SARLs] or Société en nom collectif [SNCs], which are a form of private limited liability corporate entity) is subject to a registration duty of 1% with no cap. A tax rebate is applied for each transferred security, equal to (XPF 5 million x the number of acquired securities) / the total number of securities.

Transfer of shares in non-quoted real estate companies

The transfer of shares in non-quoted companies whose assets consist principally of immovable property (or rights related to such immovable property) is subject to a registration duty of 4% with no cap.

Transfer of real estate

The sale of land and buildings is subject to registration duty at a rate of 4% on the transfer price. Some reduced rates and specific regimes exist.

Other formalities

Registration duties are not due on the incorporation of a company, except when capital contributions consist in real estate properties or movable properties.  

Capital increases are subject to registration duties (ranging from XPF 25,000 to XPF 50,000 depending on the capital of the company).

Stamp taxes

The stamp duty tax is levied on all papers intended for civil, administrative, and legal acts, and on documents that may be mentioned in the context of a judgment and provide evidence. It is also levied on all acts that have already borne the stamp and registration duties in France or abroad; it is only collected to the extent that there is a difference in the rate to be collected for the benefit of New Caledonia. Perception occurs cumulatively with the fixed and proportional fees for registration. The stamp duties are up to XPF 15,000.

Capital gains taxes

The government has implemented a tax on private real estate capital gains (PVI). It is a tax due when an individual or a partnership (e.g. an SCI) sells a real estate property, as long as the property has increased in value between the date of acquisition and the date of sale. This tax is 20% of the amount of the capital gain, to which must be added 4% the CCS, making it a total of 24%. There are a number of exemptions and specific rules for calculating the amount of the tax.

Capital gains and profits made by corporate entities, regardless of their form, established outside of New Caledonia or without a stable establishment or a head office in New Caledonia, are also subject to the PVI.

Social security contributions

The New Caledonian social security system is composed of various schemes providing a wide range of benefits. This system includes social security basic coverage, unemployment benefits, complementary retirement plans, death/disability coverage, and complementary health coverage. The contributions are based on the remunerations, and monthly thresholds are applicable to determine the rate, which ranges from 0.2% to 11.67%.

Employers have to pay these social contributions notably to the CAFAT (Caisse de compensation des prestations familiales, des accidents du travail et de prévoyance des travailleurs de Nouvelle-Calédonie).

Training contribution

A training contribution (contribution des employeurs sur les salaires au titre de la formation professionnelle) is due on wages at a 0.25% rate.

Business licence duty

Taxation of the business license (contribution des patentes) is compulsory for any natural or legal person who undertakes in New Caledonia the exercise of a trade, an industry, or a profession, for their own account and for profit.

It is calculated annually depending on the type and characteristics of the professional activity and is made up of a fixed fee (composed of a fixed tariff and additional tariffs) and a proportional duty (based on customs). If a company carries out its activity through several establishments, it will have to pay as many licences as it has establishments.

Insurance premiums tax (IPT)

Companies are required, before starting their operations, to provide the professional tax service or the business formalities center with a declaration of existence stating the nature of these operations.

Any agreement with an insurance company or with any other French or foreign insurer insuring a risk in New Caledonia is subject to IPT (taxe sur les conventions d’assurance). The tax rate is set at 7%. The tax is applicable on all the amounts paid to the insurer (premiums and its accessories). Some risks are exempted from IPT, such as life insurances or reinsurance contracts.

Please note that additional contributions should apply based on the French Tax Code.

Financial transaction tax

The tax on financial transactions (taxe sur les opérations financières) is due on financial transactions, which applies to interest, arrears, and all other income received by financial institutions and banks carrying out an activity in New Caledonia, in terms of mortgage debts, cash guarantees, current account following credit openings by banks and financial institutions.

Exemptions are applicable under certain conditions in the context, notably, of agricultural credits and real estate loans.

The tax is applicable at a 6% rate.

Entertainment and gambling tax

The gambling tax (taxe sur les produits des jeux) is applicable on incomes arising from gambling houses and games, at a rate ranging from 0.5% to 20%, depending on the gambling activity.

Solidarity tax on services

The solidarity tax on services (taxe de solidarité sur les services or TSS) applies to services provided by companies carrying out an activity in mining fields (only for supply of services with a tax point after 1 October 2018) at a 5% rate.

Centimes additionnels

The municipal councils of the communes of New Caledonia are authorised to collect additional centimes applicable to the business licence, real estate tax, registration duties, and on IRVM.