Economy

Tourism -that brings around 200.000 visitors a year- is the first source of enrichment in French Polynesia behind black pearl production -that brings in about 15M FCP a year- and deep-sea fishing that notably exports to Japan.

Tax system

Moreover, French Polynesia has a specific tax regime, very different from that of France. Thus there is a local law of tax removal -called Flosse law- that aims at encouraging Polynesian capital investment in property. As for the Paul law -formerly called Pons law- it is a French law of tax removal that aims at attracting investment from France in Tahiti and her islands.

There are also entry taxes for exported products what explains huge prices. Otherwise, there is no income tax in French Polynesia but in compensation there is a huge corporation tax. Finally, VAT -only introduced in 1998- has not the same rate than in France.

V.A.T.
The Value Added Tax (or TVA in French) was added in 1998 on all goods and services, including accommodations, food & beverages, room and meal packages, transportation, activities and excursions.

• V.A.T. 2002 on tourist services is 10%
• V.A.T. 2002 on hotels, small boarding houses, food and beverages is 6%

All the restaurant, shops, boutiques, services, activities prices are all tax included.
Rem : all rates published in The Tahiti Traveler are also tax included.

Tourist Taxes
The following taxes are to be included in your bill :

1. A tourist development tax for classified hotels rooms and tourist international cruises only

• 5% for classified hotels rooms
• 200 XPF per person and per day for international cruises

2. A visitor tax only in Bora Bora, Moorea-Maiao, Huahine, Rangiroa, Papeete, Faa'a, Punaauia

• 150 XPF per person per day on international classified hotels and international cruises
• 50 XPF per person per day on non-classified hotels

Children under the age of 12 staying with their parents are exempted
These taxes are supposed to be used to protect nature & environment, create public infrastructures, support local events as Hawaiki Nui Va'a, Heiva, create panoramic sites...