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French Polynesia 1.5% levy

Solidalitory Levy to fund corporate income tax cuts

The south Pacifian territory of French Polynesia is to impose a 1.5% Solidatory Levy on VAT transactions from 1 April 2022.

The Levy will apply to all taxable transactions subject to VAT. However, it will not be deductible against output / sales VAT for businesses.

The new charge will help fund a cut in Corporation Tax from 27% to 25%. Rates for digital companies and R&D firms will be cut to 20%.

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