Tax laws Wallis and Futuna (France)
Wallis and Futuna, as a French overseas collectivity, adheres to French legal frameworks, including those pertaining to taxation. The territory's tax system is tailored to its unique economic and administrative context.
Key Features of Wallis and Futuna's Tax System:
Absence of Income and Corporate Taxes:
- The territory does not impose income tax or corporate tax. Instead, its primary revenue source is import taxes, reflecting its reliance on imports due to limited local production.
Import Duties:
- Import duties average around 12%, serving as a significant component of public revenue.
Value Added Tax (VAT):
- VAT is levied at a standard rate of 20%, with reduced rates of 2% to 6% applicable to certain goods and services. Vehicles are subject to higher duties, ranging from 25% to 30%.
Ecological Taxation (EcoTax):
- In 2017, Wallis and Futuna introduced an ecological taxation system to promote environmental sustainability. A tax of $0.12 is applied per beverage container less than 75 centiliters, and $0.25 for containers over 75 centiliters. This initiative aims to encourage proper sorting and recycling of beverage containers.
Legal Framework:
- While French national laws, including the French Penal Code and Commercial Code, apply, Wallis and Futuna also has specific legislation, such as the territorial environmental code, addressing local issues like waste management and ecological taxation.
Customs Regulations:
- Strict customs rules govern the import and export of goods. Travelers must declare items that may be prohibited or subject to tax or duty.
Conclusion:
Wallis and Futuna's tax system is structured to align with its status as a French overseas collectivity, emphasizing import duties and VAT as primary revenue streams. The introduction of ecological taxes reflects a commitment to environmental sustainability. For detailed and current information, consulting official French government resources or local authorities is advisable.
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