A presidential decree on the reform of franchises, published in the Official Journal “Le Moniteur” August 9, 2012, aims to correct some anomalies found in the system, particularly in the NGO sector and open the door for the Directorate General of Taxation (DGI), to new tax revenues.
Ronald G. Décembre, the Secretary of State for Tax Reform notes that franchises deprive the Public Treasury of revenue, noting that nearly 500 franchises are requested each month, which represents for the financial year 2011-2012, an amount estimated at more than 7 billion gourdes.
Marie Carmelle Jean-Marie, Minister of Economy and Finance stressed that it is not “of a decree to remove the franchises of NGOs [or diplomatic missions] […] This decree does not invalidate the facilities enjoyed by businesses and industries under the investment code,” adding that it is above all, to better control these franchises, to avoid duplication and to ensure that the actions of NGOs are part of the action plan of the Government.
NGOs must now meet a number of obligations such as providing among other things : the list of equipment they want to import in the year, provide a copy of their tax registration and tax clearance to date, submit their programs of activities and transmits the list of employees to the DGI, whether Haitian or foreign. “no laws providing exemption on the income of a foreigner who works in Haiti,” specified the Secretary of State for Tax Reform.
This decree represents one of the first actions taken in the context of the reform of the Haitian tax and customs administration to allow the state to have more resources, at the level of customs as the DGI.
It should be noted that this decree cancels of franchises in favor of administrations, who bought this with this facility, while the Customs Code does not allow it. “This new order is an opportunity to achieve a scrupulous respect of aws governing franchise, inapplicable for some time in its rigor,” emphasized Ronald Décembre.