Top Sectors in French Polynesia

Agriculture in French Polynesia

Most Polynesians in agriculture farm traditional products like taro, ufi, cassava, and sweet potato to feed themselves, and small surpluses are sold for monetary income alongside small fishing activities. Farmers of Asian origin tend to produce European and Asian vegetables for the local market. The Moorea island developed pineapple production for the local market and supplies the juice factory. Maupiti and Huahine produce watermelons. Tahiti and Tahaa have a small production of sugarcane for rum distilleries. A small vineyard production exists in Rangiroa atoll and is aimed at the high-end market, capitalizing on its rarity and specificity of a vine grown on coral soil in a tropical island.

Electricity in French Polynesia

Minerals and Mining - The mineral-mining industry of Panama accounted for about 1% of the country's GDP in 2006. This does not include any manufacturing of mineral commodities, such as cement or petroleum refinery products.

French Polynesia - Key Economic Indicators

Exports and Imports

French Polynesia's economy relies heavily on tourism, so exports are dominated by tourism-related goods like pearls (black pearls are a major export), handicrafts, and noni products. They also export some agricultural products like vanilla and fish. Imports include a wide range of manufactured goods, food, fuel, and building materials.

Fiscal Policy

As an overseas collectivity of France, French Polynesia receives significant financial aid from the French government. This helps fund public spending on healthcare, education, and social programs.

Monetary Policy

French Polynesia uses the CFP franc (XPF), which is pegged to the Euro. The Central Bank of French Polynesia (IEOM) has limited control over monetary policy due to the currency peg. However, they can focus on ensuring financial stability and promoting economic growth within the limitations set by the peg.

Trade Agreements

French Polynesia benefits from trade agreements negotiated by France with the European Union and other countries. These agreements provide preferential access to certain markets and help boost trade.

Environmental Regulations

French Polynesia recognizes the importance of environmental protection for its tourism industry and unique ecosystems. The territory has environmental regulations in place to address issues like pollution, waste management, and biodiversity conservation.

Tax system

Capital Gains Tax: Generally, capital gains are taxed as ordinary income at the standard income tax rate (which doesn't exist for individuals in French Polynesia). However, specific situations might have different rules.
Corporate Tax Rate: The standard corporate tax rate for most companies is currently 25%. However, there are exceptions: (i) Companies in specific sectors like renewable energy production benefit from a lower rate of 20%. (ii) Mining companies, financial institutions, and leasing companies are subject to a higher rate, currently 33%, but scheduled to gradually decrease to 25% by 2027.
Sales Tax: French Polynesia does not have a Value Added Tax (VAT) or a general sales tax.
Property Tax: There is a property tax on real estate, but specific rates and exemptions might vary depending on the property type and location.
Payroll Tax: French Polynesia relies heavily on social contributions which function similarly to payroll taxes. These contributions fund social security and are mandatory for both employers and employees. Rates can vary depending on the category (employee, self-employed, etc.).
Tax Deductions and Credits: While information on specific deductions and credits is limited, there are likely incentives offered to attract investment and promote business activity in certain sectors.
Tax Burden: Since there's no income tax for individuals, the overall tax burden for residents is likely lower compared to some other countries. However, social contributions and other taxes still contribute to the overall tax burden for businesses and residents.

Economy of French Polynesia