iCalculator™ RE: Reunion Tax Calculators
Welcome to iCalculator™ RE, your comprehensive suite of free tax calculators for Reunion. iCalculator™ has provided free tax calculators for Reunion since 2019. Since those early days we have extended our resources for Reunion to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Reunion Tax Calculator and salary calculators within our Reunion tax section are based on the latest tax rates published by the Tax Administration in Reunion. In this dedicated Tax Portal for Reunion you can access:
Reunion Tax Calculator 2024/25
The Reunion Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Reunion. This includes calculations for
- Employees in Reunion to calculate their annual salary after tax.
- Employers to calculate their cost of employment for their employees in Reunion.
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Discover Reunion
Réunion is a French overseas department situated in the Indian Ocean, approximately 700 kilometers east of Madagascar and about 200 kilometers southwest of Mauritius. This volcanic island, known for its dramatic landscapes, including rainforests, coral reefs, and beaches, is a part of the Mascarene Islands, which also include Mauritius and Rodrigues.
The economy of Réunion is diverse, with a strong emphasis on agriculture, tourism, and public sector employment. Sugarcane has historically been the backbone of the agricultural sector, contributing significantly to the island's exports. In recent years, the diversification of crops and the development of the agri-food industry have been encouraged to reduce dependency on sugarcane and to address food security concerns.
Tourism is a vital sector for Réunion, drawing visitors with its unique natural attractions such as the Piton de la Fournaise, one of the world's most active volcanoes, and its three cirques — Mafate, Cilaos, and Salazie — which are natural amphitheaters formed by extinct volcanoes. The island's cultural heritage, featuring a mix of Creole, African, Indian, Chinese, and French influences, enriches the tourism experience with vibrant festivals, music, and cuisine.
Despite its strengths, Réunion's economy faces challenges, including a high unemployment rate, particularly among the youth, and a heavy reliance on imports for food and energy. The French government and local authorities have implemented various programs to stimulate economic growth, support entrepreneurship, and enhance vocational training to address these challenges.
The public sector plays a significant role in the economy, with substantial investment in infrastructure projects, healthcare, and education, aimed at improving the quality of life for residents and making the island more attractive for investment and tourism.
Réunion's strategic location in the Indian Ocean and its status as part of the European Union, through France, provide unique advantages for trade and economic cooperation with neighboring countries and regions.
For more information on neighboring countries and their economic profiles, explore the economic landscapes of Madagascar and Mauritius.
Tax overview of Reunion
Réunion, as a French overseas department, adheres to a tax system that mirrors the comprehensive and multifaceted structure of France's taxation policies. This system is designed to support the department's economic and social development, providing funding for public services, infrastructure, and social security systems.
Personal Income Tax: Residents of Réunion are subject to personal income tax on a progressive scale, which is determined by the level of their income, similar to the tax structure in mainland France. This ensures a fair contribution from individuals based on their financial capacity.
Corporate Tax: Companies operating in Réunion pay corporate tax on their profits, with rates and regulations consistent with those in France. This includes various deductions, credits, and incentives available to businesses, aimed at fostering economic growth and competitiveness.
Value-Added Tax (VAT): VAT is applied to goods and services in Réunion, with standard and reduced rates affecting a broad range of transactions. This indirect tax is a significant source of revenue and is critical for the funding of public expenditures.
Social Security Contributions: Both employers and employees in Réunion contribute to the social security system, which funds pensions, healthcare, family benefits, and unemployment insurance. These contributions are vital for maintaining the social safety net and supporting the well-being of the island’s residents.
The tax system in Réunion is administered by local branches of the French public finance authority, ensuring compliance with national laws and regulations while addressing the unique needs of the department. Efforts to simplify the tax process and encourage compliance include the use of online platforms for tax filing and payment.
Understanding the nuances of Réunion's tax system is crucial for residents and businesses alike, ensuring compliance and effective financial planning. The system's design reflects the government's commitment to fostering a stable, inclusive, and prosperous society.
For more insights and resources on tax management in Réunion, visit our tax hub, featuring the latest tax tools and comprehensive tax information.