New Caledonia

General consumption tax (TGC)

The government has passed a draft law to change TGC.

The main provisions in the draft law are:

• Amending the TGC tax rates to three rates (3%, 10%, and 18%) instead of four rates (3%, 6%, 11%, and 22%).
• A gradual decrease over three years of the taxable turnover thresholds, from 7.5 million to 4 million CFP (Communauté Française du Pacifique) francs (XPF) for the provision of services and from XPF 25 million to XPF 10 million for the supply of goods.
• Abolishing the exemption for construction work on social housing.
• Taxing at 3% instead of 0% the sale of books and the sale of land for building purposes.

The draft law, which was passed on 20 March 2024, will be put to a vote by the Congress and may still be modified.

Real estate capital gains

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% for the New Caledonian solidarity contribution (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.