Front Matter
 Title Page
 Tax calendar
 Table of Contents
 Income tax
 New enterprises
 Newly established industries
 Occupational taxes
 Identity card, social security,...

Our income tax and other business taxes in Haiti, a handbook.., 45p.
Full Citation
Permanent Link: http://ufdc.ufl.edu/AA00000790/00001
 Material Information
Title: Our income tax and other business taxes in Haiti, a handbook.., 45p.
Physical Description: Archival
Publisher: P-auP, Imp. l/Etat, 1956
General Note: 2b-L/E- 1956
General Note: K10 V140 /
 Record Information
Source Institution: LA Law Library
Holding Location: LA Law Library
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: LLMC31987
System ID: AA00000790:00001

Table of Contents
    Front Matter
        Front Matter
    Title Page
        Page 1
        Page 2
    Tax calendar
        Page 3
        Page 4
    Table of Contents
        Page 5
        Page 6
    Income tax
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
    New enterprises
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
    Newly established industries
        Page 40
        Page 41
        Page 42
        Page 43
    Occupational taxes
        Page 44
    Identity card, social security, customs, and currency
        Page 45
Full Text

This copy of a rare volume in its collections,
digitized on-site under the
LLMC Extern-Scanner Program,
is made available courtesy of the

Los Angeles County Law Library

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Copyright 1956 by Charles Fernand Pressoir.

(in French)

1) HAITIAN TAX CODE....................................................... March 1953

2) FISCAL AND ECONOMIC SUPPLEMENT 1953....................., March 1954

3) FISCAL AND ECONOMIC SUPPLEMENT 1954....................., March 1955

4) FISCAL AND ECONOMIC SUPPLEMENT 1955...................... March 1956


The State fiscal year is from Oct. 1 through Sept. 30

October 1-15.................................P. Box
October 1-20............................... Foreigner's license (State licen-
se, called in French).
October 1-30.................................Residence permit.- Income Tax
Rent Basis (Ist semester).
October 1-31................................Identity card.

October 1 through
October 1 through

October 1 through

October 1 through

Nov. 10...........Drivers and cars (see Police).
Jan. 15........... City license (get Foreigner's li-
cense first). The City license is
called in French.
Jan. 31.............Individual Income Tax. Final
Return for preceding State fis-
cal year.
March 31......... Rental of State Lands.
Irrigation. City tax on Rents
(called i

April 1-30.....................................Income Tax Rent basis
(2nd semester).

WITHHOLDING (Income Tax and Civic Tax).-Pay the with-
held amounts to the Bureau of Internal Revenue the following way:
Oct. 1-15 for July, Aug, Sept.
Jan. 1-15 for Oct, Nov, Dec.
April 1-15 for Jan, Feb, March
July 1-15 for April, May, June
The Civic Tax may be paid monthly if the employer so desires.

Rates (from 5% to 30 ).-Same as those which apply to other
taxpayers (see sect 26, page 24 of this booklet).
Basis Payment only on the Balance Sheet basis, not on the Rent
basis (see sect. 9, page 10).

TAX CALENDAR (continued)

Time limits.-File return with balance sheet and profit and loss
statement within 90 days following date of close of your fiscal year.
Additional 90 day time limit possible in case of foreign
(see sect. 11 page 11).

ALL CORPORATIONS Dec. 1 through 31 of each year. Pay a $20
tax at the Bureau of Internal Revenue to get a special form. Send
form and extra copy of balance sheet, to Department of Commerce.

HAITIAN CORPORATIONS Annual Tax on shares and transfer
tax payable 4 times a year on Oct. 15, Jan. 15, April 15 and July 15.
This is a stock and bond tax.

A) See the Bureau of Internal Revenue before Sept. 30 of each
B) Send each year a letter to the Department of Commerce from
Oct. 1 through 20, stating the license applied for, and submitting the
following documents :
1.-Paid license bill
2.-Paid corresponding stamp bill ($ 2)
3-License booklet (the license form is printed inside said
4.-Residence permit
5.-Identity card
Before Jan. 15, see the Department of Commerce if you have not
yet received your State license (French: licence). Jan. 15 is the
deadline for payment of the City license, (French: patente) but the
State license should be obtained first.
These two license duties are occupational taxes, See page 44 of
this booklet.
RESIDENCE PERMIT.-Oct. 1-30. See the Department of Inte-
rior in Port-au-Prince or the Prefect in the Province. This permit
is. necessary to pay your identity cai-d and apply for your State
license (Oct. 1-20).


References are to pages

Balance sheet basis...................................................... .................. 10
Cost book................................................................. ..................... 18
Deductions (business) ............ .............................................. 12
D deductions (personal)............................ .......................................... 22
Definitions.............................................. 7
General Provisions................................................. 25
Individual Income Tax.............. .......................... 20
R ates ............... .................. ...... .. ...... ..... .......... ................. 24
Reinvestment and Reserve against losses..................... .................. 15
Rent basis................................ .................... ................ 8
Special taxation methods................... .......... ........................... 26
S tock book ................... ................. .......... ............. ................. 18
Taxable elem ents.................................................................. 8


Consultative Commission....................... ....................... ................. 34
Definition....... ............. .. ... ... ................. 31
Fiscal advantages...................................... .................. 32
Inspection............................. .. ... .... .... ................. 36
Protection of national industry................................................. 38
Requests for fiscal exemption............................ ......... ............. 34
Sanctions...................................................................... 36


(provisions of the old law still in force)
Reductions of taxes....................................... ............ 40


Note.- The law contains no headings and the following are added
for the reader's convenience.
Customs duties................... ..................... 41,42
(sections 1, 2, 5, 6)
D efinitions..... ................................................................................. 41
(section 1)
Duration (five years)............................................................. 41
(section 1)
Income tax.................................. .............. ................. 42
(section 3)
Requirements..................... ... ... .............. ................41.49
(sections 1 and 2)

V) OCCUPATIONAL TAXES........................... ....................... 44
VI) IDENTITY CARD .............................................. ............................ 45
VII) SOCIAL SECURITY, CUSTOMS, CURRENCY................................. 45



(Official Gazette, Monday. Sept. 24, 1951, No. 82)
President of the Republic

in view of Sections 57, 79 and 130 of the Constitution;
In view of the Law of June 6, 1924, on the Bureau of Internal

In view of the Decree-Law of May 2, 1942, modified by that of
August 13, of the same year, along with the law of September 6,
1948, and the Presidential Decree of October 1st of the same year
on Income Tax;

Whereas there is cause to complete and arrange said texts into
a single Law;
Whereas there is cause to encourage investments of capital in
agricultural or industrial enterprises and to facilitate the reinvest-
ment of part of the profits in said enterprises;
And whereas it is indispensable, in the interest of the Treasury
as well as of the collectivity, to prevent tax evasions;
On the report of the Secretary of State for Finance;
And after deliberation in Council of the Secretaries of State;


And the Legislative Body has passed the following Law:


Section 1.-The word < income >> includes any gain, profit or
earnings derived from work; any income from personal property or
real estate; any profit derived from commerce, trade or industry,
salaries (including bonuses and gifts), profits derived from agri-
culture, rentals or annuities, interest on capital and all other pe-
riodic gains.



Section 2.-Individuals, associations, companies, partnerships or
sole proprietorships, whatever, receiving income in any of the above
ways are of right liable to pay Income Tax.
Income may be composed of the following two parts taxed sepa-
rately or of one of them:
1) Industrial and commercial profits;
2) Amounts constituting individual income.
The tax is paid on the above-mentioned incomes realized in Haiti,
whatever the place of the establishment, even when the recipient
does not reside in the Country.
For the purpose of computing the tax, the profits of the various
branches shall be added to those of the taxpayer's main estab-

(Note.-French text : forfaitaire)

Section 3.-Subject to the provisions of Section 4 hereafter, pro-
fessionnal people, merchants and manufacturers, associations, com-
panies, partnerships or sole proprietorships whatsoever, other than
corporations, are all liable without exception to the payment of the
tax on the rent basis. Where, however, from a taxpayer's return or
from the auditing of his books, registers, stubs, policies and accoun-
ting documents, it appears that he realized net profits or income
subjecting him to a tax higher than the one already paid he shall
have to pay the additional tax determined according to the net
profit or income realized.
Section 4.-The following are exempt from the payment of the
tax on the rent basis: individuals, manufacturers or merchants who
sell exclusively in quantities smaller than one piece, one dozen, five
litres, one thousand, one case or any other packing unit and have
established that the merchandise inventories, not including the
installations of their establishments, do not exceed five thousand
Gourdes (U.S. S 1.000).
However, all merchants having a small grocer City License, are
liable to the payment of the tax on the rent basis, but with a 501c
reduction of the tax, regardless of their stocks. The small grocer

IMPORTANT NOTE : One Dollar US Cy is worth Five Gourdes.


does not have to pay the income tax on the Balance Sheet basis, and
is free not to keep stamped books. (Note: French text : marchand en comestibles).
However, under the last provisions of the first paragraph bf
Section 11, the small grocer shall pay any additional income; tax
resulting from the inspection of the summary books he is obliged
to keep under Section 30, and such bookeeping shall do instead of
a Balance Sheet. In such a case, the State's fiscal year shall be
considered as the taxpayer's financial year.

Section 5.-Income on the rent basis shall be computed by mul-
tiplying by five the yearly rental value, determined in conformity
with the rolls of the city tax on rents, (French : imp6t locatif) of
the buildings and lands, which the above-mentioned taxpayers
occupy for their business or industry, without including the per-
sonal lodgings of said individuals or business firms. In the case of
self-employed professional people (lawyers, notaries public, ac-
countants, architects, physicians, dentists, tailors, shoemakers, me-
chanics and others, commission merchants, manufacturers' agents
and representatives), the yearly rental value shall be determined
from the rental of their practices, offices, clinics, hospitals, work-
shops and others. However, if the professional person uses the
same premises as one or several colleagues, or does not use special
premises for his work, the yearly rental value shall be established
officially by the Bureau of Internal Revenue. at an amount not less
than Gourdes 300.00 (U. S. $ 60) and not exceeding Gourdes 1.800.00
(U. S. $ 360) in pursuance of the provisions of Section 25.
Where the property used is located beyond the limits provided
for the collection of the city tax on rents, its rental value shall be
determined by mutual consent of the Bureau of Internal Revenue
and the taxpayer. In case of disagreement, there shall be an arbi-
tration as in the case of the city tax on rents, in accordance with
the legal provisions on the matter, with this sole difference that the
Bureau of Internal Revenue shall be a party to the same in lieu
of the City Administration.
Section 6.-The income tax on the Rent Basis is due in full on
October 1st, of each fiscal year and payable by half not later than
on October 30th and the following April 30th. Payment by half is
the effect of a simple time limit, which does not suspend the enga-
gement to pay the tax, but only postpones its complete execution.


However, the taxpayer who retires from business during the first
semester and has given in due course previous notice to the Bureau
of Internal Revenue, shall not have to pay the tax for the second se-
However, the taxpayer who moves into a building or occupies
additional property during the fiscal year shall pay the income tax
on the rent basis, in the following way. If the event occurs during
the second quarter, the tax for the first semester of the fiscal
year shall be reduced by half; if it occurs during the third quarter,
the tax shall be paid for 6 months; if it occurs during the last
quarter the tax shall be paid for 3 months. In any case, the decla-
ration concerning the property shall be filed with the Bureau of
Internal Revenue, not later than 30 calendar days from that of the
occupation of the property. The tax is payable not later than 30
calendar days from the declaration or from the moment it should
have been made.

Section 7.-Any taxpayer who, being liable or susceptible to be
liable to pay the income tax on the rent basis, has not declared to
the Bureau of Internal Revenue one or more places he occupies
for his profession, business or industry, is liable to a fine of not
less than Gdes. 50.00 (U. S. $ 10), and not exceeding Gdes. 1.000.00
(U. S. $ 200).

Section 8.- The amounts paid on the rent basis shall not be
refunded by the Treasury, whether or not the amount of the income
tax computed on the basis of the balance sheet or any other return
reveals a supplement.

Section 9.-The net profit of all taxpayers liable to pay this tax
shall be the one realized during their fiscal year, as this net profit
shall result from the annual balance sheet they must prepare pur-
suant to section 10 of the commercial code, and from their profit and
loss statement prepared according to their operations during the
taxable year, duly entered in the journal and the other indispen-
sable books they must keep under Sections 9, 10 and 11 of the
Commercial code and in conformity with the justifying documents of
their book-keeping.


Section 10.-The following are liable to pay the income tax provi-
ded in Section 2 above : corporations, companies, partnerships or
sole proprietorships, whatsoever, carrying on in the country a busi-
ness or industry, provided or not in the city license tariff. (French:
Section 11.-Companies, partnerships or sole proprietorships,
whatsoever, as well as corporations, shall make a return of their
net profit and file with the office of the Bureau of Internal Revenue,
nearest their head office or main establishment their balance sheet
and profit and loss statement provided in Section 9 above, all of
them duly certified, within ninety days following the date of the
close of their fiscal year. However, in case of material impossibility
to submit the required documents within the allowed time limit, and
upon written request produced before the expiration of the ordinary
time limit, the Director General of Internal Revenue may grant
an additional time limit, not exceeding ninety days, to the taxpayers
whose head office or main establishment is abroad. All those who
have previously had to submit their balance sheet to the Bureau of
Internal Revenue shall within the statutory time limit and without
having to be notified again, file each year with said Administration
a new balance sheet accompanied by their profit and loss statement
and the other required documents. Where, from the report of one
of its inspectors, the Bureau of Internal Revenue judges that the
profits of a taxpayer, not yet obliged to submit his balance sheet,
should justify a higher tax than that deriving from the rent basis,
a notice by registered mail shall be sent to said taxpayer, who shall
consequently submit his balance sheet and profit and loss statement
pursuant to the provisions of the present Law. In case the tax
office sends such a letter requesting a balance sheet, that letter
does not apply to the current fiscal year of the taxpayer but to the
following ones.
Merchants or manufacturers who import, or export, as well as
wholesale and wholesale and retail dealers, are liable to pay income
tax on the balance sheet basis, even though they are exempt from
doing so on the rent basis. They are, consequently, obliged to submit
each year their balance sheet and profit and loss statement to the
Bureau of Internal Revenue, whatever the result of their fiscal
year, within 90 days following the close thereof.
The following shall pay income tax on the balance sheet basis:
distributors and manufacturers' agents and insurance agents. They
shall keep books as prescribed by the commercial code. They are

- 11-

also required to submit each year their balance sheet and profit
and loss statement to the Bureau of Internal Revenue, whatever
the result of their fiscal year, within 90 days following the close
In any case, the following are required to file a return for the
tax on industrial and business profits: 1) every natural person, not
taxable on the rent basis, but whose said profits, before deducting
his salary, exceed his personal exemptions; 2) every body cor-
porate, whether or not taxable on the rent basis, carrying on a
commercial or manufacturing business, whatever the results of
its operations for the period may be.
Section 12.-Net profit, liable to income tax means the income
realized within the taxpayer's fiscal year, less the usual expenses
and charges for the administration and operation of the enterprise
during the taxable period, including the maximum allowance of
Gdes. 18.000 (U. S. $ 3.600) for the salaries referred to in paragraph
(h) hereunder of the present section, and before deducting reserves
for amortization, reimbursement or redemption of bonds or other
securities to be paid out of the capital authorized, subscribed or
invested in the enterprise, and before settlement of any dividends,
bonuses or interest on shares.
The joint drawings classified as salaries of all Shareholders, Pre-
sidents, Vice-Presidents, Administrators, Proxies, Managers, Secre-
taries and Treasurers of the Board of Directors, as well as of all
individuals having any part in the management of a Corporation,
are deductible only up to the amount of Gdes. 18.000 (U. S. $ 3.600)
pursuant to the provisions of paragraph (h) hereafter.

Expenses which constitute usual costs and charges and are de-
ductible from gross income in order to determine taxable net income
are the justified ordinary and necessary professional expenditures
directly connected with or pertaining to the taxpayer's business or
industry. The following are not deductible: expenses or charges
which do not meet these requirements and also certain expenses
excluded from business charges under an express provision of the
present law.

The following are especially considered as deductible expenses
and charges:

a) rental of the equipment and premises used for the taxpayer's
trade or industry when they don't belong to the taxpayer;


b) maintenance expense of the business premises, lighting, power
or other expenses.
c) justified commissions and brokerage expenses, and also bo-
nuses, gifts to employees, vacations paid to employees, medical ex-
penses whatsoever voluntarily paid to employees by the employer
when there exists a medical certificate issued after verification by
two Labor Department inspectors and a favorable opinion of said
d) justified transportation, forwarding, wrapping, correspondence,
office, banking, collection and publicity expenses, interest paid to
Banks established in Haiti and abroad or to other lenders paying
a city license in Haiti as such (city license: patente in French).
e) travelling expenses, travel tickets and hotel expenses during
the year for the business, not exceeding one month for America and
three months for the other parts of the world, to the extent that
they represent operation expenses rather than personal expenses,
as the Bureau of Internal Revenue may determine their validity.

However, when it is well known that the importance of the
concern is undoubtedly above average, the Finance Department
may, upon advice of the Bureau of Internal Revenue, grant an
increase of the time limits provided for travels, but said increase
shall not exceed the above figures for each case. In any case, the
taxpayer shall, in order that his request for extension of time be
acceptable, produce it within thirty days from his return to Haiti.
f) taxes and imposts connected with the business, other than
income tax;
g) insurance costs in connection with material property of the
enterprise and gifts to charitable organizations recognized by the
h) salary or drawings of the taxpayer, as compensation for per-
sonal services, and also the personal salary of all the associates
together in a corporation or a partnership, and of the owners of sole
proprietorships; said salaries or drawings shall be deductible only
up to an amount ranging from G. 9.000 (US. S 1.800) to G. 18.000
(U. S. $ 3.600) for the financial year and according to the volume
of annual sales. Consequently:
1) up to Gdes. 250.000 (U. S. $ 50.000) of annual sales, the
drawings shall be of Gdes. 750 (U. S. S 150) monthly;


2) up to Gdes. 500.000 (U. S. $ 100.000) of annual sales, the
drawings shall be of Gdes. 1.000 (U. S. $ 200) monthly;
3) over Gdes. 500.000 (U. S. $ 100.000) of annual sales the
drawings shall be of Gdes. 1.500 (U. S. $ 300) monthly;
i) depreciations generally allowed according to the customs of
each kind of industry or trade, by reason of exhaustion, wear and
A deduction for amortization or depreciation, even though the
principle thereof should be incontestable, is allowed only to the
extent that the amortization or depreciation has as a result to bring
back, at least approximately, to its real expression, the value which
was formerly attributed to the asset items in question.
For the purpose of the collection of income tax, the word < ciation> means decline or wear of real estate, equipment and mo-
vable property in the course of the taxable year. Where there is
established a depreciation reserve, it may not exceed the following
maximum percentages which are considered as representing the
real depreciation to the exclusion of any expenditures made for
repairs and maintenance.
Land ........................................................... nothing
Merchandise, raw materials in stock.................. nothing
Buildings, structures, wooden frames or woo-
den and masonry frames............................ 5% a year
Buildings, structures, masonry and iron frames 4' a year
Motors, machinery, fixed apparatus and equip-
ment, furniture and fixtures, parts and acces-
sories ....................................................10 a year
Vehicles, tools and implements.....................25% a year
Expenses for fungible things, that is to say things which can
rapidly be destroyed through use, are deductible expenses and
The following shall be considered as taxable income : any amount
drawn from the depreciation reserve for purposes other than the re-
placement of fixed assets and also any residuary value of items which
have been completely depreciated according to the percentages al-
lowed by the present Law. Merchandise and raw materials are to be
priced at the time of the inventory taken for the balance sheet, at
cost or market, whichever is lower.


Expenditures for replacement or extension of fixed assets are
not operating expenses and charges. Such expenditures shall be
entered in the account.
On the other hand, the following are excluded from operating
charges and are not deductible, particularly:
1) taxes paid or advanced for employees or partners, for example
their personal state license or city license; (French: licence
et patente),
2) rental expenditures of employees or partners,
3) fines and penalties incurred,
4) taxes paid abroad,
5) salaries and expenses for an office or establishment abroad,
6) travelling expenses of partners and employees, in case of
7) travelling expenses of the families of the partners and em-
ployees, whether in case of vacation or not.

Any reinvestment of 25% of the profits in an agricultural or in-
dustrial enterprise is a deductible charge for the fiscal year which
follows that during which it was made, when the purpose of the
operation is to increase the output of the enterprise; said 25%
shall not exceed Gdes. 100.000 (U. S. $ 20.000).
This deduction shall not be allowed unless the reinvestment was
preceded by a notice given to the Bureau of Internal Revenue and
if the works and acquisitions constituting this reinvestment were
carried out under the direct control of said Bureau assisted by the
competent Service of the State. Moreover, before the operation is
undertaken, it must have been approved in any case by the Depart-
ment of Finance, and, should the occasion arise, by those of Agri-
culture and Public Works, as per detailed specifications.
Merchants, manufacturers, business firms are authorized to consti-
tute a reserve against losses by an annual 10% drawing on their
net profits, which drawing shall be exempt from income tax. Howe-
ver if, during a thirty-six month period, from the close of the ba-
lance sheet, the drawing has not been used, either for losses in
all cases referred to in the beginning of the present paragraph, or
for an additional reinvestment in the case of an agricultural or

-15 -

industrial enterprise, then said drawing or its available balance
shall be added to the fourth year profit; except for the amount,
such a reserve for reinvestment is subject to the same requirements
provided in the preceding paragraph. The 10% reserve and that
for doubtful accounts are not cumulative.

Section 13.-No reserve for doubtful accounts shall be allowed in
excess of the effectively uncollectible accounts or parts of accounts,
and, as a justification there shall be submitted a statement contai-
ning the name, first name and address of each debtor, with, on the
opposite column, the amount which is owed and that which is re-

Section 14.-Every income tax bill on the balance sheet basis
shall be paid not later than when falling due, and the taxpayer is
liable to the 10% penalty for each month or fraction of month of
default provided by the law of June 6, 1924, on the Bureau of
Internal Revenue, as amended by the Decree-Law of January 11,
1936. There shall be at least a time limit of thirty ordinary days
between the date of issuance and that of falling due.

Section 15.-Under penalty of a fiscal fine of not less than Gour-
des 50.00 (U. S. $ 10) and not exceeding Gdes. 2.000 (U. S. $ 400),
collectivities and individuals liable to make a return of profits or
income, are subject to the audits of the Bureau of Internal Revenue,
and obliged to communicate to any Internal Revenue Inspector
upon his request, at their head office or main establishment as well
as in their branches and agencies, their books, registers, stubs,
policies and accounting documents whatsoever, as well as the mi-
nutes of proceedings and reports of meetings of stockholders or
Boards of Directors, in order to allow said Office to audit their
returns and make sure of the compliance with the income tax laws
by themselves and other taxpayers, and these audits shall not go
back to more than two fiscal years already taxed.

Section 16.-The following shall be liable to the same fine pro-
vided in the preceding section: every taxpayer who has not filed
within the time required by the present law the return of pro-
fit or income he is bound to file or has lessened the efficiency of
the audit by refusing to submit to the Internal Revenue Inspectors
all or part of the books, registers, stubs, policies and accounting
documents whatsoever, whose communication is requested for au-


diting the return of another taxpayer, or who shall not have kept
books in accordance with sections 9, 10 and 11 of the Commercial
code or who in the return of profits or income he is liable to file
has failed to mention an unimportant part of the gross receipts
realized during the fiscal year.
Section 17.-In case of ascertained tax evasion, the income tax
shall be collected on an amount ranging from 8% to 15% of the
taxpayer's volume of business, that is to say his gross receipts for
the taxable period, such as the Bureau of Internal Revenue may
establish it.
There is tax evasion:
1) when the taxpayer liable to the payment of income tax on
the balance sheet basis, refuses after expiration of the legal time
limit to submit his balance sheet and profit and loss statement;
2) when, without any valid reason, he is unable to submit for
audit the books required by law;
3) when, as a consequence of irregularities which the Bureau of
Internal Revenue deems as indicating fraud or intention of fraud,
discovered in his bookeeping, it appears impossible to determine
the net taxable income from the books kept under sections 9, 10
and 11 of the Commercial code;
4) finally, when in the return of profits or income he must file,
the taxpayer failed to include an important part of the gross receipts
realized during the fiscal year, or included in the general expenses
and usual charges fictitious expenses or expenses exceeding their
real amount, all the foregoing being elements which, given their
importance, denote a spirit of fraud according to the Bureau of
Internal Revenue.

Section 18.-To facilitate the inspection of the books of the tax-
payers liable to the tax, they shall mention, separately, in the
inventory book the goods which are:
1) In the principal store;
2) In the warehouses and branches with indication of the streets
and numbers of the premises;
3) At the custom House or elsewhere, when the invoices relative
to the goods have been paid or the drafts accepted;
4) In the warehouses of a guaranteed creditor or of a third party
in possession of the pledge.


In case of failure to make the above-mentioned entries in the
inventory book the taxpayer shall pay the income tax on an amount
ranging from eight to fifteen per cent of his volume of business or
gross receipts, such .s the Bureau of Internal Revenue may establish
Section 19.-Under penalty of a fine of not less than Gdes 50
(U. S. $ 10) and not exceeding Gdes. 1.000 (U. S. $ 200), exporters
and importers shall keep:
1) a stock book indicating, at their respective dates, the coming
in and going out of merchandise;
2) a cost book in which shall be computed the cost of the items re-
ceived by consular invoice, care being taken to mention the
purveyor's name and address, the numbers and dates of the
commercial invoice and of the customs bill, as well as the name
and date of arrival of the ship which brought the cargo.
For the stock book, the importing dealer who is in the exceptional
cases provided in section 16 of the Constitution, and who, conse-
quently, is a wholesale and retail merchant, shall be deemed to have
two departments, one of them for import. His bookkeeping shall
consequently contain an account for imported stock, for example,
which shall be credited by the debit of the purchases or merchandise
accounts, gradually as he shall transfer a non-opened parcel to his
retail department. The stock book shall not be required for this
department but shall be required for the imported stock depart-
ment, as just explained.
As a rule, the stock book is directly connected with the import
or export phase.
The books required by the present section shall be duly stamped
and initialled and their pages shall be numbered, as provided in the
commercial code for the journal or the inventory book.
The Bureau of Internal Revenue, upon request, shall supply any
interested person with models of accounting books complying with
the requirements of the present section, including, eventually, a
combination of the stock and cost books.
To replace the stamped stock book and the cost book for impor-
ters of haberdashery or stationery goods, who are also retailers and
whose main stock is located in their store, the following provisions
shall apply.


They shall keep a stamped and initialled invoice-book with num-
bered pages; in said book shall be recorded all imports or purchases,
as well as the following information:
1.-Name of the ship which brought the merchandise;
2.-Number, date and amount of the customs bill;
3.-Purveyor's name;
4.-Calculation of cost price;
5.-Page of the journal in which the entry has been made.

This kind of bookkeeping may be extended to other categories of
merchants by Decrees of the President of the Republic.

Section 20.-Any accountant who shall have willingly made en-
tries recognized fraudulent shall be liable to a fiscal fine of not less
than Gdes. 50 (U. S. $ 10) and not exceeding Gdes. 1.000 (U. S.
S 200), assessed and collected by the Bureau of Internal Revenue. In
case of a second offense, he shall be exceptionally indicted in the
Correctional Court and liable to an imprisonment ranging from two
months to two years or to the withdrawal of his city license or to
both penalties at the same time (French word for city license:

NOTE.--Here is an important ruling on section 19.



Pursuant to subsection 5 of section 19 of the law of September
12, 1951, merchants and manufacturers who import or export are
hereby notified that while being stamped, initialled and with
numbered pages, the stock book may either be bound or made of
loose leaves individually stamped and bearing numbers printed or
affixed by means of a numbering machine, for the purpose of ins-
pection of the book by the Bureau.
For his convenience, the taxpayer may always use an additional
and unofficial numbering, according to his needs, so that all sheets
concerning the same item follow each other. At any time it must
be possible to reconstitute the original book for inspection purposes.

Port-au-Prince, Sept. 28, 1951.
19 -


Section 21.-The following are liable to the individual income tax:
all wage earners whatsoever, business employees, public employees,
people who practise liberal professions or other non-commercial lu-
crative occupations, moneylenders, people with investment income,
and all those who derive income from any source not included
among industrial and business profits.

Concerning houses put at the disposal of relatives, friends or
others, without compensation, the estimated annual rental value
which is used as the basis for the city tax on rent shall consequently
represent the taxable amount.
Salaries of partners of commercial and industrial partnerships
are part of the general bulk of their individual income and are
subject to a monthly withholding at source like those of the emplo-
yees. Salaries of self-employed merchants or manufacturers are not
subject to the monthly withholding, and are declared and taxed
under section 22 of the present law, with the other individual in-
come items.

DIVIDENDS.-Dividends shall be subject, on the part of business
firms, to a 5j withholding at source which shall in no case be
refunded; dividends shall not be included in the individual income
tax returns.
The business firm shall transmit the money with an explanatory
statement to the Bureau of Internal Revenue, from the 1st through
the 15th of the month following the settlement of the dividends,
under penalty of being personally held responsible for the money
or amounts. Collection shall involve, against the firm, the usual
10% penalty per month or fraction of month of default and the
issuance of a warrant of distraint against said firm. (French: con-
Section 22.-The individual income tax return shall be filed with
the nearest office of the Bureau of Internal Revenue on or before
January 31st of each year for the State fiscal year ended on the
preceding September 30th.
The amount of the tax shall, at the same time the return is filed,
be paid to the Bureau of Internal Revenue against receipt or trans-
mitted by registered letter with receipt, mailed before the time
limit expires.


Said return shall be made by the taxpayer on forms put at his
disposal by the Bureau of Internal Revenue.
The return shall show a tax deduction resulting from the withhol-
ding at source made on the salaries by the employer.
Concerning self-employed professionals (lawyers, notaries public,
accountants, architects, doctors, dentists, tailors, shoemakers, me-
chanics and others, commission agents, manufacturers'agents and re-
presentatives) who pay the tax also on the rent basis allowance
shall be made for the same in their individual income tax return,
in conformity with section 3 of the present law.

Every natural person whose net individual income is over G. 5.000
(U. S. $ 1.000) or Gdes. 3.000 (U. S. $ 600), whether he is married
or single, is required to file an individual income tax return.

Section 23.-Beginning with the month of October of each year,
one twelfth of the income tax due by the State officials, employees
and wage-earners, by reason of their salaries, shall be withheld
each month on their salaries.
This same withholding shall be made by the employers on the
salaries of their employees and the money is to be paid to the
nearest office of Internal Revenue, accompanied by a statement
signed by the employer, on or before the 15th of the month following
the quarter for which the salary has been paid. Bonuses and gifts
shall also be included in the statement submitted on or before the
15th of the quarter following that for which they have been paid,
and such a statement shall be accompanied by the amount of the
corresponding tax.
The quarterly statement, accompanying the payment, by the em-
ployer, of the tax on the salaries shall contain, for each one of the
employees, the following information:
1) Surname and first name
2) Address
3) Total of annual salary
4) General 10% deduction from salary (maximum of this de-
duction: Gdes. 1.000 (U. S. $ 200).
5) Total of personal exemptions
6) Total of Nos. 4 and 5 above


7) Annual taxable salary (No. 3 minus No. 6)
8) Amount of annual tax
9) Amount of tax withheld at source for the month (one twelfth
of No. 8).
The employer who fails to withhold the twelfths of the tax is
personally responsible toward the Public Treasury. In any case, the
collection shall involve, againts the employer the usual 10% penalty
per month or fraction of default, beginning on the 16th of the month
following that in which the withheld monies should have been paid
in, an the issuance of a warrant of distraint against said employer.
(French : contrainte).

Section 24.-PERSONAL EXEMPTIONS.-The following perso-
nal exemptions are the only allowed ones:
a) Gdes. 3.000 (U. S. 600) per year on the income of each
unmarried individual liable to the tax;
b) Gdes. 5.000 (U. S. $ 1.000) per year on the income of a married
c) Gdes. 1.000 (U. S. $ 200) per year and per head up to a total
of Gdes. 5.000 (U. S. $ 1.000) on the income of any individual
having dependents, either ascendants or descendants i. e. chil-
dren, father, mother, father-in-law, mother-in-law, etc.

The obligations resulting from the above paragraph C are reci-
The above-mentioned Gdes. 1.000 (U. S. S 200) deduction per
year and per head does not apply to a child, grandson or grand-
daughter of the taxpayer, unless the dependent was during the
taxable year:
1) under twenty-one years of age or
2) twenty-one years of age or over, and dependent either be-
cause he was studying in a school or university in Haiti or abroad,
recognized by the State. or by reason of a mental of physical infir-
mity. In the case of an ascendant or descendant, only the one who
furnishes over half the support may claim the deduction. In othe:
words, several taxpayers may not claim the deduction on account
of the same dependent.
One is entitled to deduction (a) or to deduction (b) but not to
both together. Deduction (c) is eventually added to (a) or (b).


Deduction (b) is granted, in case of death of one of the spouses,
to the surviving spouse who is not remarried and supports one o
more children of the marriage.

individual income tax, there shall be no deductions for contributions
to charities, taxes and imposts, insurance, losses from fire. They
are replaced by a 10% general deduction from the adjusted indi-
vidual income as explained hereunder and such deduction shall
not exceed Gdes. 1.000 (One thousand Gourdes) (U. S. $ 200).
In computing the individual income tax, the way of proceeding is
the following:
i) List of the different incomes forming the adjusted individual
income. The latter is composed of:
a) Gross salaries including gross gifts and gross bonuses; gross
income from annuities or pensions;
b) Gross rentals less one-third (1/3) of them; such third shall,
for the properties in question, be in lieu of any deduction
for depreciation, taxes, insurance, repairs, etc.
c) Interests;
d) Other income (to be specified by the taxpayer).
II) 10'/' general deduction on the adjusted individual income as
determined under No. 1; such a deduction shall not exceed G. 1.000
(U. S. $ 200).
III) Deduction of personal exemptions a, b, c, allowed by the be-
ginning of the present section.
IV) Deduction of the fraction of medical expenses exceeding the
10% of the adjusted individual income, described in No. II above,
and that fraction shall not exceed Gdes. 1.000 (U. S. S 200) if the
taxpayer is unmarried or G. 2.000 (US. S 400) if he is married; said
medical expenses must have been made by the taxpayer for him-
self and the individuals covered by his personal exemptions. All
the justifying documents shall be attached.
V) Deduction of interest paid, as per attached justifying docu-

PROFESSIONAL EXPENSES.-The following are also deducti-
ble, when justifying documents are attached, in the computation of
the adjusted individual income: the taxpayer's professional expen-
ses, specially the expenditures inherent in the operation of the
Offices, laboratories, practices, clinics, etc.


Section 25.-1) Every taxpayer who, within the legal time limit,
has failed to file with the nearest Bureau of Internal Revenue his
individual income tax return, or has refused to furnish explanations
for the audit of his return is liable to a fine of not less than
Gdes. 25 (U. S. $ 5) and not exceeding Gdes. 2.000 (U. S. $ 400).
In case of a second offense he shall be, in addition, liable to an
imprisonment of not less than one month and not exceeding one
year, to be imposed by the Correctional Court.

2) Every taxpayer, liable to payment of the tax on his income
or profits who has not filed his return within the legal time, may,
without prejudicing to the other legal sanctions, be invited by a
summons served upon him, at the request of the Bureau of Internal
Revenue, to file said return within thirty (30) clear days (i. e. a
time in which the first and last days are not counted);

3) After that time limit, the tax base and the tax itself shall be
assessed officially by the Bureau of Internal Revenue, according to
the elements at the disposal of said Office, and that administrative
decision shall not be subject to any recourse to court;

4) A writ covering the assessment made officially by the Bureau
of Internal Revenue shall be served upon the taxpayer.

NOTE : One Dollar US Cy is worth Five Gourdes.
Section 26.-The income tax shall be paid according to the follo-
wing rates:

from G. 0 to G. 15,000 5%
from G. 15,001 to G. 40,000 10% on the amount in excess of G. 15,000
from G. 40,001 to G. 70,000 15% on the amount in excess of G. 40,000
from G. 70,001 to G. 100,000 20% on the amount in excess of G. 70,000
from G. 100,001 to G. 200,000 255 on the amount in excess of G. 100,000
from G. 200,001 305 on any surplus

To facilitate the collection of the tax on incomes or profits of small
amounts, the Bureau of Internal Revenue shall have printed a table
taxing them in an approximate manner, by groups of Gdes. 50
(U. S. S 10), centimes being eliminated. This table shall have legal
force after its publication in the official Gazette (Moniteur in
French) and the taxpayer shall be free to use it or to make exact



Section 27.-The rates for both the individual income tax and the
tax on industrial and business profits (Rent basis and Balance sheet
basis) are those provided in section 26 of the present law.

Section 28.-In case of declared transfer, whether or not with
compensation, the present holder remains jointly and severally res-
ponsible with the first taxpayer for any income tax not yet paid by
the latter.

Section 29.-Every fine provided by the present law shall be
provisionally assessed in the name of the Bureau of Internal Reve-
nue, by the Director General or the Collector of Internal Revenue
at an amount ranging from the minimum to the maximum and shall
be collected by way of issuance and execution of warrant of dis-
traint, under the law of June 6, 1924, on the Bureau of Internal
Revenue, the decree-law of January 11, 1936 on warrants of distraint
in Internal Revenue matters, and the decree-law of August 31, 1942
securing a prompt collection of receipts. (French for warrant of dis-
traint: contrainte).
In case of litigation, the taxpayer shall submit to the court the
receipt or paid bill, establishing payment of the fine, and shall only
be allowed to ask the court to decide on whether or not there was
cause for the fine. The case shall be heard to the suspension of all
other business without postponement and without inscription in
the trial calendar.

Section 30.-TAXPAYERS' BOOKKEEPING.- Professionnal
people are requested to have a journal, initialled without cost, before
use, by the Bureau of Internal Revenue, which shall also number
its pages without cost. This book must have everyday entries and
show the detail of the professional receipts and expenses of the
taxpayer. This journal and all documents liable to be communicated
shall be preserved during five years.

In case of physicians, surgeons, dentists, mid-wives and lawyers,
the journal indicates, for the receipts opposite the date, only the
detail of the sums received.

The Bureau of Internal Revenue has authority to require com-
munication of the books and all justifying documents of expenses.


As a rule, every person liable to the tax, whether he is a merchant
or not, other than the taxpayers required to keep books either
stamped or with pages thereof numbered by the Bureau of Internal
Revenue, shall have a summary bookkeeping.
Any infraction of the provisions of the preceding paragraphs shall
constitute a presumptive evidence against the taxpayer.
Section 31.-PROFESSIONAL SECRECY.-Public officials and
employees, as well as process-servers (French: huissiers) who have
to intervene for applying tax laws, are required to keep, outside the
performance of their duty, the most absolute secrecy about the
profits or income of taxpayers, when they have known of them as
a consequence of the execution of these laws, under penalty of the
sanctions provided by section 323 of the Penal Code.


Section 32,-1) Without prejudice to the other means of investi-
gation, taxation and sanction provided by the Income Tax legisla-
tion, the Bureau of Internal Revenue may, to arrive at the determi-
nation of the taxable income, use either the method of similar tax-
payers. or that of increase of net worth, or that of exterior signs.
These methods apply to all categories of taxpayers liable to income
tax (merchants, manufacturers, professional people, etc.).
irrefutable and convincing bookkeeping, and in the presence of an
important disproportion between the real results of an enterprise
or of an individual and the returns made, the gains or profits are
determined by the Bureau of Internal Revenue, by considering the
normal gains or profits of similar taxpayers and taking into account,
if there be occasion, invested capital, volume of business (turnover)
number of workers or employees, motive power used, rental value
of the lands under cultivation or the buildings occupied as well
as all other useful information.

In applying the method of normal gains, the Bureau of Internal
Revenue may always, in support of its decision, submit either to
the Tax Commission provided in Section 33 or to the courts, a
statement certified by two of its sworn inspectors and the Director
General of Internal Revenue, all of them bound by professional
secrecy. That statement, which shall mention no names of taxpayers


taken for comparison, but shall contain the essential elements of
the tax base of each one of them, shall be held true until contrary
evidence is furnished by the taxpayer, establishing that in his own
case such data do not apply.
The Bureau of Internal Revenue may, in applying the method of
similar taxpayers, establish, in agreement with the interested groups
of professional people, contractual taxation bases.
3) INCREASE OF NET WORTH METHOD.-For the same rea-
sons set forth in the Ist subparagraph of paragraph 2 above, the
Bureau of Internal Revenue may also reestablish the taxpayer's
income or gain by determining his net worth increase and adding,
for example, to that amount, unjustified bank deposits. Purchases
of personal property and real estate, made in the course of the fiscal
year in question are, among others, a part of the net worth increase.
When that method is used, the taxpayer's refusal to enable the
Bureau of Internal Revenue to inspect his Bank deposits and with-
drawals or to furnish any other information or submit any other
document shall be a presumptive evidence against him.

4) METHOD OF EXTERIOR SIGNS.-If the net worth method
cannot be applied, the assessment of the tax base may be made by
the Bureau of Internal Revenue from signs or indices denoting
economic circumstances superior to those shown by the income or
profits declared in the return, in case of bodies corporate as well
as of natural persons.
To apply the method of exterior signs, the Bureau of Internal
Revenue shall use, among others, the following elements of standard
of living, whose total determines the minimum adjusted individual
income; being understood that the Tax commission or the Court
may decide on each particular case, in the event of disagreement
about any surplus:

Element of standard of Living Adjusted individual income
for the year
Annual rental value of the principal residence.... 3 times
Annual rental value of the secondary residences.. 6 times
Private automobile, used not more than five
years as per series...................................... Gdes. 4.500 each (US S 900)
Private automobile used more than five years as
per series ............................. .................... Gdes. 9.000 each (US S 1.800)
The elements of appraisal value in question are tied to situations
of fact, to use, independently of any question of right of ownership.



Section 33.-1) When the Bureau of Internal Revenue, applying
the above methods, deems that it should rectify the amount of the
income declared, it gives, by registered letter with receipt, before
assessing the tax, notice to the taxpayer of the figure it intends to
substitute for that shown on the return, and states its grounds for
making the correction; the taxpayer is requested, at the same time,.
to submit his objections and to produce, eventually, any useful
justifying documents within twenty clear days (Note. In Haitian
and French law, the first and last days are not counted when com-
puting a clear time limit). If the taxpayer fails, during twenty-
five clear days, to furnish the required evidence or to submit the
required accounting documents, then his return is considered void
and his tax is officially assessed under subsection 14 of the present
2) Within the above-mentioned time limit, from the receipt of
said letter, as per the Post-Office seal, said taxpayer shall have
served by process server (French: Huissier) on the Bureau of In-
ternal Revenue, represented by the Collector or the Director Ge-
neral, as the case may be, a writ containing either his acceptance
of the proposed figure of net income or net profit, or his desire to
have an amount fixed by a Tax Commission, having its bench in
the interested chief town. The Commission shall be composed of
1) The of the Civil Court or a Judge designated by him,
President, (NOTE.--The presiding judge is called in French: Doyen)
2) two arbitrators, one chosen by the Bureau of Internal Revenue,
the other designated by the taxpayer in said writ; if the taxpayer
fails to designate his arbitrator, the President shall proceed;

3) In the same writ which the taxpayer shall have served on
the Bureau of Internal Revenue to express his desire to have his
income or profit fixed by the Commission, he shall make a summary
statement of the case in discussion, with his grounds. This writ
shall contain summons to appear before the Tax commission within
15 clear days, at 10 a. m. On the day and hour set, the President
of the Commission may indicate another hour for pleading.

4) Within the same 15 clear days provided above, the taxpayer
shall serve a copy of the above petition containing his plea and the


designation of his arbitrator, on the clerk of the Civil Court of the
Jurisdiction in question; the latter shall file it with the ,
and so the case shall be brought before said .

5) The Commission holds hearings in the Chamber of the Council,
(NOTE.-French: Chambre du Conseil) at the civil court of the
domicile of the taxpayer; it is assisted by a clerk of the same court.
Before their operations, the members of the Commission in the
presence of their President take the oath to fulfil well their mission
in complete impartiality and to keep the secrecy of the deliberations
in which they shall take part.
6) The Bureau of Internal Revenue shall file with the clerk's
office a memorandum which shall be communicated to the interes-
ted party at least twenty-four hours before the hour of appearance,
without need of having said memorandum served.
7) The parties shall be allowed to set forth their considerations
in person or through a representative.
8) The commission deliberates validly whether the taxpayer is
present or not. It also deliberates validly, provided two members at
least are present, including the President. In case of disagreement,
the President's voice is preponderant.

9) After examination of the grounds of the Bureau of Internal
Revenue and the taxpayer, the Commission decides, by stating the
net income or net profit it has determined. It renders its decision in
writing within a maximum time limit of eight clear days.
10) This decision shall be subject neither to opposition nor re-
course to the court of appeals and shall be enforceable provisionally,
(NOTE.-French: executoire par provision) on minutes, (NOTE.-
French: sur minute, meaning immediately without any other for-
mality) without bail, notwithstanding any recourse to the Supreme
Court or prohibition of execution. (NOTE.-French text: defense
11) Appeal from such a decision may be sought only in the
Supreme Court.
12) The declaration of appeal to the Supreme Court shall be filed
with the office of the clerk of the Civil Court where the Tax com-
mission sat, within eight clear days from the day said Com-
mission's decision was rendered, by the party whose interest it is to


do so, and the declaration shall be signed by said party or his repre-
sentative, and by the court clerk. For the other formalities, the ap-
peal shall be considered an urgent matter (NOTE.-French: affaire
13) The time limits of service of petitions and that of the decla-
ration of appeal, provided in subsections 2, 3, 4 and 12 of the present
section are prescribed under penalty of forfeiture (NOTE.-French:
14) In case the taxpayer fails to cause the formation of the
Commission within the required time limit, the tax shall be assessed
without appeal by the Bureau of Internal Revenue, at the amount
previously indicated to the taxpayer, and the penalties shall begin
to accrue on the first day of the month which shall follow the
expiration of the time limit of 25 clear days prescribed by the
first subsection of the present section for the notice the taxpayer
had to give to the Bureau of Internal Revenue.
Section 34.-The details of application of the present Law shall
be settled by Presidential decrees and according to necessities.
Section 35.- The individual income tax returns for 1950-1951
shall be made on the old forms.
Section 36.-All Laws or parts of laws, all decree-laws or parts
of decree-Laws in conflict herewith are hereby repealed. This law
shall take effect on the first of October 1951. It shall be published
and executed at the suit of the Secretaries of State for Finance and
Justice, each one for the provisions which concern him.
Passed, etc.........

- 3(1 -

Protecting National Agriculture and Industry by permitting them to develop,
to improve and to increase their production.
(Official Gazette, Thursday, August 25, 1955, No. 75)
President of the Republic
In view of Sections 57 and 79 of the Constitution;
In view of the law of June 6, 1924, on the Bureau of Internal
In view of the law of Aug 11, 1903, on payment of the foreigners'
license tax;
In view of the Decree-law of Sept 23, 1935 on the city license;
In view of the law of July 26, 1926 on the customs tariff as well
as all other decree-laws and laws in force concerning said tariff;
In view of the law of Sept 12, 1951 on income tax;
In view of the laws of October 8, 1949, and October 24, 1954, on
New Industries;
Whereas in order to promote the economic development of the
country, it is necessary to encourage the creation of new enterprises,
whether agricultural or industrial, in order to facilitate the maxi-
mum use of local labor and raw materials and stimulate investments
of private capital, either national or foreign;
And whereas it is proper to protect national agriculture and
industry, to allow them to expand, to improve and to increase their
On the report of the Secretaries of State for National Economy,
Finance and Commerce;
After deliberation in Council of the Secretaries of State;

And the Legislative Body has passed the following law:

Section 1.-Under the present law, the expression < cultural or Industrial Enterprise>> means:


a) every workshop, plant or factory utilizing, in accordance with
the legislation in force on labor, the services of at least twenty
people for the production, by elaboration or transformation of raw
materials of local or foreign origin, of one or more articles not yet
manufactured in Haiti on an industrial basis from October, 1949
b) every enterprise which grows a vegetable species either new,
or not yet exploited on a commercial basis, or raises new animal
species or breeds, or is engaged in any kind of breeding not yet
established on a commercial scale.
Exceptionally, the status of new enterprise, either agricultural or
industrial, with the advantages attached thereto, may be acknow-
ledged in favor of a workshop, plant or factory which, while comply-
ing with the other conditions set forth in the first paragraph, utilizes
the services of less than twenty people, provided that the establish-
ment in question spends monthly in salaries paid to the personnel
exclusively assigned to production, an amount of at least three
thousand gourdes (NOTE: US $ 600) and is in a position to establish
this fact for any month of the fiscal year, to the satisfaction of
the competent authorities. In case of an agricultural enterprise, the
monthly salaries distributed may reach a minimum of one thousand
gourdes (NOTE: US $ 200).
In no case the status of new enterprise, either agricultural or
industrial, with the advantages attached thereto, shall be acknow-
ledged in favor or an establishment whose operations are limited
to the preparation, modification or finishing, assembling or moun-
ting of a product or article imported in bulk, in component parts,
separated or isolated parts or pieces, unless said product or article,
modified or finished, assembled or made up in Haiti, is for export.

Section 2.-Every new agricultural or industrial enterprise shall,
during a period of ten consecutive years, be entitled to the following
fiscal advantages:
1.-Exemption from import duties, not including consular taxes,
storage duties and handling charges for:
a) building materials for buildings or premises for the establish-
ment of the enterprise or the enlargement of existing buildings or
premises, when these building materials are not produced locally;


b) machines, apparatus or tools necessary to the installation and
operation of the enterprise, as well as spare parts for these machines
and apparatus, machines and apparatus exclusively for prospecting
and research work, as well as equipment and chemical products to
be used in laboratory operations;
c) raw materials necessary to the production activities of the
enterprise, when it is not possible to find them locally;
d) equipment and supplies for wrapping and packing the manu-
factured articles if they are not produced in Haiti;
e) trucks, locomotives, trailers and their accessories and spare
parts, as well as railroad cars or cars exclusively affected to the
transportation of the equipment, supplies and manufactured pro-
ducts of the enterprise;
f) for fuel used by agricultural tractors and motors of the agri-
cultural and industrial pumping stations when the new industry
meets the requirements of section 1.
This exemption shall only be granted on the favorable report of
the Department of Agriculture determining the quarterly and
annual needs of the enterprise, in connection with the number of
motors and tractors effectively in service and their horsepower.
2.-Exemption from export duties for the manufactured products
of the enterprise.
3.-Exemption from city license taxes and foreigner's license
taxes in favor of the enterprise and the owner of the enterprise
(French text: entrepreneur).
4.-Income tax exemption during the first year of operation and
reduction of income tax in the proportion of 20% during the first
five years of exploitation.
Section 3.-Enterprises established under the law of Oct. 8, 1949
shall, from now on, during a period of ten years from the date of
beginning of operations, be entitled to the following advantages:
1.-Reduction of city license taxes, foreigner's license taxes and
income tax, in the proportion of 50% during the first year and 20%
during the five succeeding years.
2.-Exemption from export duties on the manufactured products.
3.-Exemption from import duties for the machines and apparatus
necessary to the enterprise and the spare parts to be used with
these machines and apparatus, raw materials which are not produ-
ced in the country, stores necessary for packing and wrapping the
manufactured articles.


However, those which establish that they meet the requirements
set forth in section 1 of the present law shall, from now on and up
to the end of the above-mentioned ten years be entitled to the ad-
vantages described in section 2 above.

Section 4.-For the purposes of the present law, there is institu-
ted in the Department of National Economy a Consultative Com-
mission composed of representatives of the Departments of National
Economy, Finance, Commerce, Agriculture and Public Works.
Section 5.-The Consultative Commission performs, under the
direct control of the Secretary of State of National Economy, the
following duties:
a) To examine as to their financial, economic and social aspects,
requests for starting industrial enterprises, filed under the present
b) To examine and approve the list of machines, equipment and
raw materials for which the customs exemption has been requested;
c) To suggest, for each authorized enterprise, the most practical
way of inspecting the use of the raw materials for which the
customs exemption has been granted.
For the purposes of paragraphs a, b, c, the Department of Natio-
nal Economy, upon request of the Consultative Commission, may
solicit the opinion of any other qualified technicians.
Section 6.-The Consultative Commission shall hold meetings in
the Office of the Department of National Economy each time cir-
cumstances so require. The Commission chairman shall be the Re-
presentative of the Secretary of State of National Economy who
shall have the responsibility of the Commission's Secretariat.
Section 7.-Every natural person or body corporate, wanting to
be entitled to the exemptions provided in the present law, shall file
with the Department of National Economy a request containing the
following information:
a) amount of capital to be invested;
b) location of the enterprise;
c) detailed list and cost of the machines and apparatus it intends
to use, with mention of the country in which they are manufactured;


d) approximate number of people to be employed by the enter-
prise, including foreign specialists, if there are to be any; in this
last case, mention shall be made of the probable duration of their
e) nature of the articles or products to be manufactured by the
enterprise; samples shall be submitted if possible;
f) complete list of raw materials, specifying their local or foreign
g) contemplated markets for the products of the enterprise;
h) time limits within which the enterprise may begin its instal-
lation work and its production operations.
The request shall be accompanied with plans and specifications
of the buildings, in case the enterprise desires to be entitled to the
customs exemption for the building materials.
Section 8.-Within eight days from the reception of the request
for tax exemption, the Department of National Economy shall
forward the complete file of the same to the Consultative Commis-
.sion for study and explanatory report.
Section 9.-Not later than fifteen days after the request has been
transmitted to the Consultative Commission, said Commission shall
submit the result of its deliberations to the Secretary of State of
National Economy, in the form of a report with recommendations,
and copies of said report shall be forwarded to each interested
Department by the Consultative Commission.
Section 10.-After examination by the Secretary of State of
National Economy of the report of the Consultative Commission,
the decision, whether or not favorable, shall be conveyed, by regis-
tered mail to the interested party. In case of a favorable decision,
notice of the same shall be given to the public, by means of a
publication in the Official Gazette, and in a daily of large circula-
tion. The publication in the daily shall be made at the beneficiary's
expense. (Official Gazette in French: Moniteur).
The Secretary of State of National Economy shall convey the
decision to the Secretary of State for Finance.
Section 11.-Manufacturers already established in this country
who think they are exposed to grave prejudices because of the
exemption decision, may, within 30 days from the above-mentioned
publication, file their claims with the Department of National Eco-
momy, by registered letter with receipt. Said Department shall


transmit the file to the Consultative Commission, which shall pro-
ceed to a new examination of the question by making, if it deems
it necessary, a supplementary inquiry.
If the Commission decides to modify its decision, it will send a
justifying report to the Secretary of State of National Economy,
who, in agreement with the Secretary of State of Finance, shall
submit the question to the Council of Secretaries of State for ap-
proval or disapproval. The new decision shall be published in the
Official Gazette and in a daily of large circulation, at the expense
of the interested party.
Section 12.-If the decision is favorable, the Department of Na-
tional Economy shall fix a time limit of not less than one year
and not exceeding two years within which the enterprise entitled to
the exemption shall begin its construction and installation work and
its production operations.
The duration of the exemption shall start from the moment when
the enterprise began to operate and produce.
Section 13.-Where the needs in raw materials of an enterprise
exceed the available local production, the exemption provided in
paragraph 1 of section 2 and paragraph 3 of section 3 may be granted
for the complementary quantities of imported raw materials. In
such a case, the enterprise shall submit at least every three (3)
months to the Department of National Economy an estimate of
the quantities of raw materials it intends to import.
Section 14.-During the ten years the exemption granted to a new
industry lasts, and in case it is evident that the production of the
industry does not meet the needs of local consumption and during
the period that remains for the expiration of the ten years, the
Council of Secretaries of State may upon their request grant the
same exemption to other manufacturers who intend to exercise the
same activity, provided a justifying report is submitted by the
Consultative Commission in conformity with the provisions of the
present law.


Section 15.-The manufacturer who has received duty-free ar-
ticles must be in a position, at any time, to justify the use he has
made of the same. To that effect, he shall have a stock book which


shall be numbered and initialled by the Bureau of Internal Re-
venue, and shall be submitted upon any request. This stock book
shall enumerate the goods ordered and received with all the indi-
cations useful for inspection: number of bill of lading, date of
arrival, quantity and weight, etc.

Section 16.-Under the penalty of refusal to examine any request
for customs exemption, according to the prescribed administrative
procedure, the manufacturer shall submit upon any request of the
competent service, his stock book kept up to date. Moreover, he
shall make, not later than on the 10th of each month, a statistical
report on the production of his enterprise, on a form prepared for
that purpose. Said report, certified to be true and duly signed, shall
be sent to the Department of National Economy.
Section 17.-As soon as any enterprise which has obtained exemp-
tion from import duties, starts business, the Section of Industrial
Control of the Department of National Economy in accord with the
interested party, shall establish, for its inspections, a ready reckoner
of the use of the raw materials and other articles received.
Acceptance of this ready reckoner shall be stated in an official
report drawn up by two delegates of the Department of National
Economy and signed by the owner of the interested enterprise.
Section 18.-No article received duty-free shall be sold or diver-
ted from its purpose without written authorization from the
Department of National Economy and previous payment of the
corresponding customs duties.

Any sales or use of articles received duty-free, made contrary to
these provisions shall be held fraudulent and illegal. The articles so
sold and used shall be subject to the double of the prescribed duties,
the collection of which may be made by means of an administrative
warrant (Note.- French: contrainte) in pursuance of the decree
of July 25, 1940. The offender shall moreover be punished by a fine
of not less than Gdes. 5.000 (US. $ 1.000) and not exceeding
Gdes. 25.000 (US $ 5.000), to be imposed by the Correctional Court
upon proceedings by the Public Prosecutor, to the suspension of all
other business.

These fines shall be collected by the Bureau of Internal Revenue
and deposited with the Public Treasury as miscellaneous receipts.
In case of second offense, the fine shall be doubled and the sus-
pension of the tax exemptions shall be of right.


Section 19.-The Inspectors of the Department of National Eco-
nomy, the agents of the Customs Administration and those of the
Bureau of Internal Revenue shall have authority to inspect and
control particularly through the inspection of the stock book, the
industrial establishments entitled to exemption from customs duties,
in order to detect any abuse of the fiscal advantages granted by the
present law. The offenses shall be verified by an official report
drawn up by two inspectors. This official report shall be forwarded,
through the official channels, to the Department of National
Section 20.-The tax exemptions provided in sections 2 and 3 of
the present law may be suspended when the beneficiary has com-
mitted one of the following breaches of the law:

a) When the enterprise has not been installed within the time
limit fixed by the Department of National Economy, except in case
of duly verified circumstances beyond the control of the owner;

b) When the benefit of the exemptions has been obtained by
means of false declarations concerning the importance and nature
of the activities of the enterprise;

c) When the enterprise has discontinued its production activities
during a three month period, in the course of a single year, except
in case of duly verified circumstances beyond the control of the

In the case mentioned in paragraph (b), all taxes and duties
from which the enterprise had been exempted shall be due until
the time the decision withdrawing the exemptions became effective.
Said taxes and duties shall then be computed, assessed and col-
lected by the interested administrations under the laws in force
on the matter.

Section 21.-The industrial enterprises governed by the present
law, which shall be able to prove, to the satisfaction of the Depart-
ments of National Economy, Finance and Commerce, that they are
in danger of discontinuing their operations because of the compe-
tition of similar imported products, shall have the right to a customs
protection within the purlieus of the International Agreements in


Every time a protection has been granted, under any form, to a
national industry, the Secretaries of State for National Economy
and Commerce shall have authority to prescribe all measures useful
to the protection of the legitimate interests of the consumers and
shall particularly have the right to request communication of the
accounting books and documents in order to fix the maximum sale
prices on the interior market.

Section 22.-All laws, decrees, decree-laws and all parts of laws,
decrees, decree-laws, in conflict herewith are hereby repealed and
this law shall be published and executed at the suit of the Secreta-
ries of State for National Economy, Finance and Commerce, each
one for the provisions which concern him.
Passed, etc.


(sections of the old law still in force)

encouraging the establishment of entirely new industries or others
Official Gazette of Oct. 24, 1949, No. 105
Note.-The following does not apply any more to industries
classified as <>. See Section 2 of the law of Aug 8, 1955 for them.


Section 9.-During the first twelve months of existence of any
industrial enterprise, whether or not it qualifies as new, set up
after the promulgation of the present law, whether it is an agricul-
tural or manufacturing industry or a handicraft venture, its city
license duties (NOTE.-French: patente) and income tax shall be
reduced by half. The same applies to the license tax in general.
During the following twelve months, the taxes and imposts in
question shall be reduced by 20%.
Section 10.-For the purpose of the above provisions, the allot-
ment calculations shall be made for the actual number of months,
unless special tax laws divide the tax year into quarters or otherwise.

- 40 -


LAW OF JUNE 22, 1948
Favoring the construction of hotels in order to promote tourism.
(Official Gazette, Thursday July 1, 1948, No. 56).
President of the Republic

In view of Section 61 of the Constitution;
Whereas one of the conditions indispensable to the promotion of
Haitian tourism is the construction of appropriate hotels;
And whereas to encourage investment of capital in this new
branch of national activity, exemption from income tax and from
customs duties on building, plumbing and electrical material as well
as on equipment and furniture intended to be used for the sanitary,
hygienic, plastic or other installations of these hotels may be granted
upon request;
On the report of the Secretaries of State for Finance, Tourism
and Public Works;
After deliberation in Council of the Secretaries of State.

And the Legislative Body has passed the following law:
Section 1.-Every hotel or group of detached hotel buildings now
under construction or to be built, having a capacity of fifteen (15)
or more rooms, every hotel or group of detached hotel buildings
now existing, to which ten (10) or more rooms shall be added in
order to bring its total capacity to a minimum of 15 rooms, shall
be entitled to the following advantages after complying with the
formalities prescribed by the present law:
a) exemption (for the first establishment>,, from customs duties
on all the following articles: wood, iron, cement, nails and others,
hardware, plumbing and electrical material, equipment and furni-
ture necessary to the sanitary, hygienic,-plastic or other installations
to be used in the building; fabrics necessary to the linen-room,
within the limits of the needs of the hotel, silver-plate, plates and


dishes. This exemption may be granted for a period of five years in-
favor of every new hotel, from the date of opening. In respect of
existing hotels, the exemption shall be proportional to the number
of rooms added.
Section 2.-In order that the exemption from customs duties be
granted, the following conditions are required:
a) The contractor shall submit to the Fiscal Department of the
Bank a certificate from the Department of Public Works attesting
that articles manufactured in Haiti of the same quality and at the
same price cannot be obtained on the market;
b) The materials and equipment described in section 1, paragraph
(a), shall be consigned directly to the enterprise or to an importing
merchant specially and previously authorized by the Department
of Finance to receive these articles on account of said enterprise.
c) A copy of the maps and specifications, duly approved by the
Departments of Public Works and Tourism shall be submitted to
the Fiscal Department of the Bank accompanied by an import per-
mit from the Department of Finance;
d) Every room shall have an area of at least 16 square meters
with bathroom, including shower, washbowl, W. C. with hot and
cold water, bathroom adjoining the room. Each room shall also have
a large wardrobe and shall be properly furnished with two mons type beds, with a mattress or a mattress of a
similar type or with a double bed or a 1% place bed, same mons> type, a comfortable armchair, one or two night tables, 1 or
2 cupboards or cheval glasses, and appropriate electric system as
well as a bell system. A communication door inside the room shall
be provided with a 24 x 72 high mirror. The plans of the plumbing,
electricity and bell system installations shall be submitted to the
competent services of the Public Works and the Electric Light
Company for verification purposes.
Section 3.-The income tax exemption shall be granted to the
hotels and groups of separate hotel buildings mentioned in section
1, only if the new constructions or additions made to existing hotels
meet the requirements of section 2, paragraph (d) of the present
Section 4.-The Engineers of the Public Works Department and
representatives of the Department of Finance may, at any time,
inspect the use of the articles imported duty-free.


Section 5.-The beneficiary of the customs exemption shall notify
the Department of Finance of any sale he intends to make on the
local market of articles he received exempt from duty and which
are no longer necessary to his business. In such a case the customs
duties shall be paid before the sale of the articles. Preference shall
be granted to public services before any sale to private individuals.
Section 6.-Every article imported exempt from duty, which has
been sold without previous payment of the duties shall be subject
to double duty, which may be collected by way of an administrative
warrant of distraint (NOTE: French: contrainte) under the decree-
law of July 25, 1940 on confiscation.
Section 7.-In case hotels or groups of separate hotel buildings
are put to another purpose, having taken advantage of the provi-
sions of the present law, in the course of the ten years following
the date of opening of said establishments, notice shall be given to
the Secretary of State for Finance who shall then require payment
of the unpaid customs duties. The owner of the enterprise (NOTE.-
French text: entrepreneur) who fails to comply with this obligation
within thirty days after the date of the change of purpose, shall be
liable to double duties the collection of which shall be made as
provided in section 6 above.
Section 8.-All laws or parts of laws in conflict herewith are
hereby repealed, principally the law of September 4, 1947. This law
shall be executed at the suit of the Secretaries of State for Finance,
Tourism and Public Works.

Passed... etc.

-43 -


1) FOREIGNER'S OCCUPATIONAL TAX (French : licence) This
is a federal tax. Time limit : October 1 through 20 each year.

2) CITY OCCUPATIONAL TAX (French : patente)
Time limit : October 1 through January 15 each year

The amounts are not high.

.Unless there is a special provision to the contrary, the city occu-
pational tax paid by foreigners is double that paid by Haitian na-

In most instances, people run a merchandising business. In such
case, the foreigner must have two sets of State licenses and City
licences, i. e. as a Consignment merchant (French : Negociant
consignataire) and Wholesale and retail merchant (marchand en
gros et en detail). The 4 taxes, including accessory duties, amount
to $ 253.50 a year, for Port-au-Prince, as follows :

US Dollars
City tax (Patente) for consignment merchant...................... S 70
Social A id......................... ........... ............... 14
Stamp tax.............................................. 2
Civic Tax ................ .............. ...... ........ 12

S 98
State license (licence) for consignment merchant............... S 87.50
Stamp tax............................ ..... ............. 2.

S 89.50
City tax (Patente) for wholesale and retail merchant.......... S 24
Social Aid.... ................... ........... .. ...... .................. 4.80
Stamp tax................................. ............ 0.40
Civic Tax............. ............................... 4.80

S 34.00
State license (licence) for wholesale and retail merchant... S 30
Stamp tax............................ ......... ............. ...... 2

S 32
Grand Total....................... ....... ...............US Cy 253.50

Add S 1 for buying the State license booklet, good for 5 years.
The State license is printed inside the booklet



(Time limit : October 1 through 31, each year)

Law of April 21, 1939 as amended by that of Sept. 12, 1953 (Fiscal
and Economic Supplement 1953, page 55).
This tax is never high.
It is based on the following elements :
1) monthly salaries or drawings (see schedule below)
2) 1/5 of the city occupational tax
3) 1/5 of the city tax on rents.
The final identity tax is the highest amount deriving from 1),
2) or 3) above.

(salaries or drawings) Annual Tax
in US Cy
1) not over Gdes 150 (US Cy 30)..................... ........ ........$ 0.60
2) over Gdes. 150 (US Cy 30) but not exceeding
Gdes. 500 (US $ 100)............................... ... .... ..... 2.00
3) over Gdes. 500 (US Cy 100) but not exceeding
G des. 1.000 (U S S 200).......................................... .......................$ 3.00
4) over Gdes. 1.000 (US Cy 200) but not exceeding
Gdes. 1.500 (US S 300)............................................. .................... 7.00
5) over Gdes. 1.500 (US Cy 300)................................ .....................$ 10.00
NOTE.-DAY LABORERS (French : journaliers).............................$ 0.40
S0.40 is the minimum identity tax.
NOTE.-The amount of the identity tax is the same, whatever the date of
payment. Penalty of S 0.10 per quarter for late payments.



SOCIAL SECURITY (Assurances Sociales). In certain cases social
security taxes are to be paid to the Department of Labor. See the
Office of the < Grounds (IDASH).
CUSTOMS. For Import and Export duties and exemptions, see the
Fiscal Department of the National Bank.
CURRENCY. One dollar (U. S. Cy) is equivalent to five gourdes
(Gdes. 5).
One gourde (Gde. 1) is equivalent to twenty American cents
(S 0.20).

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