Table of Contents
- Executive Summary: Key Tax Changes in Haiti (2025–2029)
- Overview of Haiti’s Tax System: Structure and Authorities
- Recent Tax Reforms and Legislative Updates
- Personal Income Tax: Rates, Deductions, and Compliance
- Corporate Taxation: New Rates, Filing Rules, and Incentives
- VAT and Indirect Taxes: What’s Changing for Importers and Retailers
- Tax Compliance: Digitalization, Enforcement, and Penalties
- Key Statistics: Revenue, Evasion, and Collection Trends
- International Agreements and Cross-Border Tax Issues
- Future Outlook: Predicted Changes and Strategic Recommendations
- Sources & References
Executive Summary: Key Tax Changes in Haiti (2025–2029)
Haiti’s tax system is undergoing significant reform as the government seeks to modernize fiscal administration, enhance compliance, and broaden the tax base for sustainable development between 2025 and 2029. The Haitian Ministry of Economy and Finance (MEF) has prioritized these reforms to address chronic revenue shortfalls and meet commitments to international partners. This executive summary outlines key tax changes, recent legislative updates, compliance initiatives, and the outlook for the next several years.
- Legislative Updates (2025): The 2025 Finance Law introduces revised income tax brackets for individuals and legal entities, with a focus on progressive taxation and reduced exemptions. The law also expands the value-added tax (VAT) regime to cover a broader range of goods and services, aiming to address previous gaps in indirect taxation (Ministère de l’Économie et des Finances).
- Corporate Taxation: The standard corporate income tax rate remains at 30%, but new anti-avoidance provisions target transfer pricing and cross-border transactions. Stricter documentation requirements are being implemented to ensure compliance, especially for multinational enterprises (Ministère de l’Économie et des Finances).
- Indirect Taxes: The VAT, set at 10%, now applies to more consumer categories. Excise duties on alcohol, tobacco, and fuel have been revised upward to increase government revenue and align with regional norms (Ministère de l’Économie et des Finances).
- Tax Administration and Compliance: The General Directorate of Taxes (DGI) is rolling out a digital tax filing and payment platform by mid-2025, aiming to reduce evasion and streamline taxpayer services. Enhanced audit powers and data-matching capabilities are planned to improve compliance rates, which historically have been below 60% for businesses (Direction Générale des Impôts).
- Key Statistics (2025): Tax revenue as a percentage of GDP is projected to rise from 10.5% in 2024 to 12% in 2025, with a medium-term goal of reaching 15% by 2029. The government expects these changes to yield an additional 1.5 billion gourdes annually (Ministère de l’Économie et des Finances).
- Outlook (2025–2029): Continued reforms are anticipated, including the introduction of e-invoicing, expansion of taxpayer education, and further reduction of informal sector activity. The government aims to strengthen institutional capacity and align Haiti’s tax system with international standards to foster investment and inclusive growth.
These changes reflect Haiti’s commitment to modernizing its tax regime and enhancing fiscal sustainability in the face of economic and social challenges.
Overview of Haiti’s Tax System: Structure and Authorities
Haiti’s tax system operates under the authority of the Ministère de l'Économie et des Finances (Ministry of Economy and Finance), which oversees policy, administration, and revenue collection. The principal body responsible for the administration and enforcement of tax laws is the Direction Générale des Impôts (DGI), which manages direct and indirect taxes at the national level.
The current tax structure is based primarily on the General Tax Code (“Code Général des Impôts”), last revised in 2005, but subject to annual updates through fiscal laws and the national budget. The main categories of taxation in Haiti include:
- Corporate Income Tax: Levied on net profits of legal entities at a standard rate of 30%.
- Personal Income Tax: Progressive rates apply to individuals, ranging from 10% to 30%.
- Value Added Tax (VAT): Called “Taxe sur le Chiffre d’Affaires (TCA)”, this indirect tax is generally set at 10% on the sale of goods and services.
- Customs Duties and Excise Taxes: Administered by the Administration Générale des Douanes on imports and certain goods.
- Other Taxes: Including property tax (Impôt Foncier), payroll taxes, and various stamp duties.
The Haitian tax system is centralized, with nearly all significant tax types collected at the national level. Municipalities have limited authority, mostly concerning local fees and minor levies. The DGI is responsible for tax registration, assessment, collection, and enforcement, as well as issuing tax identification numbers (NIF) and processing returns.
Compliance has historically been a challenge, with tax-to-GDP ratios among the lowest in the Caribbean. As of the most recent official data, Haiti’s tax revenue represented less than 12% of GDP, a figure the government aims to increase through digitalization, anti-evasion measures, and modernization of the DGI’s systems Ministère de l'Économie et des Finances. The government’s current fiscal strategy, outlined in the 2023–2025 budget framework, prioritizes broadening the tax base, streamlining procedures, and improving taxpayer services.
Looking ahead to 2025 and beyond, reforms are expected to focus on digitizing tax filing, strengthening enforcement, and enhancing transparency. The DGI has announced ongoing projects for electronic tax services and data integration with customs to improve compliance and revenue mobilization Direction Générale des Impôts. These efforts are crucial as Haiti seeks to stabilize public finances and fund essential services amidst persistent economic and social challenges.
Recent Tax Reforms and Legislative Updates
In recent years, Haiti has undertaken several tax reforms aimed at modernizing its fiscal framework, increasing domestic revenue, and addressing longstanding issues of low tax compliance. For 2025 and the near future, the government continues to face challenges in broadening the tax base, improving collection efficiency, and incentivizing formal economic activities.
One of the central legislative updates is the ongoing implementation of the “Code Général des Impôts” (General Tax Code), which was adopted to replace older, fragmented tax regulations. The code provides clearer definitions of tax obligations for individuals and corporations, expands the scope of taxable activities, and strengthens penalties for non-compliance. Key reforms include updated income tax brackets, a more robust framework for value-added tax (TVA), and efforts to reduce exemptions that previously eroded the tax base. The General Tax Code also establishes stricter procedures for tax audits and dispute resolution, aiming to enhance transparency and taxpayer confidence Ministère de l’Economie et des Finances.
In the 2024-2025 fiscal period, the Ministry of Economy and Finance has rolled out new measures to increase tax registration among businesses and professionals, including digital platforms for filing and payment of taxes. These initiatives are intended to counteract Haiti’s low tax-to-GDP ratio, which has hovered around 13%—significantly below the regional average for Latin America and the Caribbean. Increasing this ratio remains a key policy objective, as domestic resource mobilization is critical to funding public services and infrastructure Ministère de l’Economie et des Finances.
To improve compliance, the Direction Générale des Impôts (DGI) has strengthened enforcement by increasing audits and collaborating with other government agencies to identify unregistered taxpayers. The DGI has also prioritized the reduction of the informal sector’s footprint, which remains a major impediment to tax collection. Recent programs have targeted real property tax, customs duties, and the VAT system, aiming to close loopholes and reduce evasion Direction Générale des Impôts.
Looking ahead, the outlook for tax reform in Haiti includes continued digitalization of tax administration, further tightening of enforcement, and potential revisions to corporate and personal tax rates. However, progress will depend on political stability and the capacity of institutions to implement reforms effectively. The government’s commitment to these reforms is reflected in ongoing stakeholder consultations and legislative proposals under review for 2025 and beyond Ministère de l’Economie et des Finances.
Personal Income Tax: Rates, Deductions, and Compliance
Personal income tax in Haiti is governed primarily by the General Tax Code (Code Général des Impôts). For the 2025 tax year, Haiti maintains a progressive tax regime for individuals, with rates ranging from 10% to 30% depending on annual income brackets. The most recent tax schedule is as follows:
- 10% for annual taxable income up to 60,000 Haitian gourdes (HTG)
- 15% for annual taxable income between 60,001 and 150,000 HTG
- 25% for annual taxable income between 150,001 and 500,000 HTG
- 30% for annual taxable income above 500,000 HTG
Taxable income includes salaries, wages, professional fees, and other forms of compensation, minus allowable deductions. Key deductions include social security contributions, certain education expenses, and a standard allowance for dependents. The Ministère de l’Économie et des Finances publishes annual updates to these thresholds and deductions.
Employers are required to withhold personal income tax at source under the Pay-As-You-Earn (PAYE) system and remit it monthly to the Direction Générale des Impôts (DGI). Self-employed individuals and those with additional income sources must file annual personal income tax returns, typically due by March 31st of each year. Non-compliance can result in penalties, interest charges, or audits by the DGI.
Recent years have seen increased enforcement efforts and digitalization of tax administration. The DGI has expanded its online services, enabling electronic filing and payment, which is expected to improve compliance rates and transparency. Nevertheless, challenges remain: as of 2024, Haiti’s tax-to-GDP ratio is estimated below 13%, one of the lowest in the Caribbean region, reflecting both structural informality and administrative constraints (Direction Générale des Impôts).
Looking ahead to 2025 and beyond, Haiti’s fiscal authorities are prioritizing reforms to broaden the tax base and strengthen compliance, including enhanced taxpayer education and stricter enforcement of filing requirements. There is also ongoing discussion about adjusting tax brackets and deductions to account for inflation and economic volatility. These measures aim to improve revenue mobilization and support public investment.
Corporate Taxation: New Rates, Filing Rules, and Incentives
Haiti’s corporate taxation framework continues to evolve as the government seeks to broaden the tax base, raise public revenues, and stimulate economic activity amidst ongoing fiscal challenges. For the 2025 fiscal year, the principal corporate income tax (CIT) rate remains at 30%, applicable to both resident and non-resident companies deriving income from Haitian sources. Legal updates and budget statements indicate no imminent plans to reduce this rate, as fiscal consolidation remains a priority for authorities (Ministère de l'Économie et des Finances).
All companies registered in Haiti are required to file annual tax returns with the Direction Générale des Impôts (DGI) by the 31st of March for the preceding tax year. Returns must be accompanied by supporting financial statements, and companies are responsible for advance tax payments during the year, with final adjustments due at the time of filing. The DGI has intensified digital transformation efforts, rolling out e-filing options and digital payment systems to improve compliance and streamline administration, with further enhancements expected by 2026 (Direction Générale des Impôts).
Notably, Haiti maintains a system of sectoral incentives designed to attract investment and spur economic growth. The Investment Code provides tax holidays of up to 15 years for qualifying projects in priority sectors such as agriculture, tourism, manufacturing, and renewable energy. Additional exemptions may apply to customs duties, local taxes, and certain payroll obligations for approved projects, subject to ongoing compliance and reporting requirements (Centre de Facilitation des Investissements).
Transfer pricing rules remain underdeveloped, but the DGI has signaled its intent to modernize documentation requirements and improve capacity for auditing related-party transactions, in line with international standards. The government is also considering measures to combat tax evasion, including updated rules on thin capitalization and anti-avoidance provisions, anticipated for phased introduction over the next few years (Ministère de l'Économie et des Finances).
Official statistics indicate that corporate tax compliance rates are slowly improving, though the informal economy still limits the overall tax base. The World Bank and other development partners are supporting Haiti’s tax administration reforms, which are expected to increase revenue mobilization and incentivize formal sector growth by 2027 (Direction Générale des Impôts). Businesses operating in Haiti should closely monitor regulatory updates, as further changes to rates, incentives, and enforcement mechanisms remain likely in the coming years.
VAT and Indirect Taxes: What’s Changing for Importers and Retailers
Haiti’s value-added tax (VAT) regime and other indirect taxes have been the focus of several policy discussions, as the government seeks to improve fiscal revenues and modernize its tax system in line with international standards. The principal indirect tax is the Taxe sur le Chiffre d’Affaires (TCA), which functions similarly to a VAT and is governed by the General Tax Code. As of 2025, the TCA is imposed at a standard rate of 10% on the sale of goods, provision of services, and imports, with a reduced rate of 1.5% for certain essential food products and agricultural inputs (Ministère de l’Economie et des Finances).
For importers, TCA is collected at customs upon entry of goods into Haitian territory, in addition to customs duties and other charges. Retailers, on the other hand, are required to charge TCA at the point of sale and remit collected amounts to the tax authorities on a monthly basis. The Direction Générale des Impôts (DGI) enforces compliance, with increased scrutiny expected in 2025 as digital systems and audit capacities are expanded (Direction Générale des Impôts).
- Recent Developments: In late 2023, the government announced a National Tax Reform Strategy, signaling intentions to increase TCA collections by broadening the tax base and reducing exemptions. Public consultations are underway to potentially raise the standard rate or harmonize sectoral rates, though no official increase has been enacted for 2025. The authorities also aim to enhance e-filing and payment systems to streamline compliance for retailers and importers.
- Compliance Requirements: All businesses exceeding the annual turnover threshold set by the DGI (currently 2 million gourdes) must register for TCA, maintain compliant invoicing, and submit regular returns. Non-compliance may result in penalties, audits, or business license suspension. Importers must ensure proper declaration and payment at customs, with TCA receipts required to clear goods.
- Key Statistics: Indirect taxes, led by TCA, represented approximately 40% of Haiti’s domestic tax revenue in 2023. The government’s 2025 budget anticipates a 12% increase in TCA collections, primarily from tightened enforcement and extended coverage to digital and informal commerce (Banque de la République d’Haïti).
The outlook for importers and retailers is one of heightened compliance obligations and closer monitoring. While no immediate changes to TCA rates are confirmed for 2025, ongoing reforms could reshape the indirect tax landscape in the next few years, with potential rate adjustments and stricter enforcement on the horizon. Businesses should closely monitor developments and ensure robust internal controls to meet evolving obligations.
Tax Compliance: Digitalization, Enforcement, and Penalties
Tax compliance in Haiti is undergoing gradual transformation as authorities seek to modernize tax administration, enhance enforcement, and improve overall fiscal transparency. The Ministère de l'Économie et des Finances (MEF) and its tax agency, the Direction Générale des Impôts (DGI), are at the forefront of these initiatives, motivated by the need to increase domestic revenue mobilization in a challenging macroeconomic context.
One of the most significant recent developments is the progressive digitalization of tax compliance processes. The DGI has expanded its online tax filing and payment platform, e-Tax, allowing taxpayers—particularly corporations and professionals—to declare and pay several types of taxes electronically. This system, initially piloted for large taxpayers, is gradually being extended to a broader base, with the government targeting full national coverage within the next few years. The digital platform aims to reduce compliance burdens, increase transparency, and minimize opportunities for corruption.
Enforcement efforts have also intensified. The DGI has announced regular campaigns to identify non-compliant taxpayers and to encourage voluntary regularization. These campaigns are supported by increased cross-checks between tax filings and data from other government agencies. The DGI also collaborates with the Administration Générale des Douanes to monitor import-export activities, ensuring that customs and income tax declarations are consistent. For 2025, enforcement priorities include construction, retail, and professional services—sectors identified as prone to underreporting.
The penalties for non-compliance remain significant. Under Haiti’s General Tax Code, late filing or payment may result in fines ranging from 5% to 25% of the unpaid tax, with additional daily interest charges. In cases of tax evasion or fraud, criminal prosecution and further sanctions may apply. The DGI regularly publishes lists of delinquent taxpayers as part of a public shaming strategy to boost compliance.
Despite these reforms, Haiti continues to face major challenges: the tax-to-GDP ratio remains below 13%, significantly lower than the regional average, and informality is widespread. Looking forward, the government’s strategy through 2025 and beyond is to invest in digital infrastructure, expand taxpayer education, and further tighten enforcement—aiming to gradually raise compliance rates and bolster public revenues in support of social and development priorities (Direction Générale des Impôts).
Key Statistics: Revenue, Evasion, and Collection Trends
Haiti’s tax system is characterized by persistent challenges in revenue mobilization, high rates of evasion, and fluctuating collection performance. For the fiscal year 2022-2023, domestic revenue represented approximately 9.7% of GDP, one of the lowest ratios in the Latin American and Caribbean region. This figure remains well below the regional average, which hovers around 22% of GDP. Tax revenues in Haiti are derived primarily from indirect taxes—customs duties and value-added tax (VAT)—with direct taxes such as income and corporate taxes contributing far less to the overall revenue base.
The Ministère de l’Economie et des Finances has reported that customs duties alone accounted for over 55% of total tax receipts in 2023, reflecting the country’s dependence on border taxation rather than domestic collection. The VAT, introduced at a standard rate of 10%, is a key source of government funding, but compliance remains a challenge due to limited enforcement capacity and a large informal sector.
Tax evasion is a major impediment to effective revenue collection. According to the Ministère de l’Economie et des Finances, estimates from recent years suggest that over 60% of potential tax revenues are lost to evasion and avoidance. The informal economy, which comprises more than half of Haiti’s total economic activity, further exacerbates the issue, as many businesses and individuals operate outside the formal tax net.
Collection rates have shown modest improvement following the implementation of digitized tax services and targeted compliance campaigns by the Direction Générale des Impôts. Efforts since 2022 include the expansion of e-filing platforms, modernization of customs administration, and stricter audits for large taxpayers. However, persistent political instability and security concerns continue to undermine collection efforts and discourage voluntary compliance.
Looking ahead to 2025 and beyond, the government has signaled its intent to broaden the tax base and strengthen enforcement. Public consultations on potential reforms—including adjustments to VAT, enhanced property tax regimes, and anti-evasion measures—are ongoing. The outlook remains cautiously optimistic: if security conditions stabilize and reforms are implemented, Haiti could see gradual improvements in revenue-to-GDP ratios and reduced evasion rates over the next few years. Nonetheless, significant structural and administrative challenges must be overcome to achieve sustainable progress in tax collection.
International Agreements and Cross-Border Tax Issues
Haiti’s framework for international agreements and cross-border tax issues remains underdeveloped compared to global standards, but has shown incremental progress in recent years. As of 2025, Haiti is not a signatory to the OECD’s Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS), nor is it a party to the Convention on Mutual Administrative Assistance in Tax Matters. The country maintains a limited network of bilateral tax treaties, with only a handful of agreements in place, primarily focused on double taxation avoidance with countries in the Caribbean and Latin America.
Efforts to modernize Haiti’s tax system have been supported by international organizations such as the International Monetary Fund (IMF) and the Inter-American Center of Tax Administrations (CIAT). Technical assistance has targeted capacity-building for the Haitian tax authority, the Ministère de l'Économie et des Finances, particularly in the areas of transfer pricing, cross-border taxation, and the exchange of information. However, progress in enacting comprehensive transfer pricing regulations or frameworks for automatic exchange of tax information has been slow.
In 2025, compliance with international tax standards remains a challenge. Haiti does not currently participate in the Common Reporting Standard (CRS) or the Foreign Account Tax Compliance Act (FATCA) regime, limiting the country’s ability to exchange taxpayer information with foreign tax authorities. This gap has made cross-border tax enforcement and the prevention of tax evasion more difficult, and has left Haiti on the periphery of global efforts to increase tax transparency.
Cross-border business transactions are subject to domestic taxes, including a 30% corporate income tax and a 10% withholding tax on payments made to non-residents, unless reduced by a specific treaty provision. In the absence of comprehensive treaties, foreign entities may face double taxation on their Haiti-source income. The Ministère de l'Économie et des Finances provides guidance on these matters, but the lack of a robust treaty network often results in uncertainty for multinational enterprises operating in Haiti.
Looking ahead, Haiti is expected to continue gradual reforms, guided by international partners, to improve cross-border tax compliance and pursue new tax treaties. However, given persistent challenges in governance and administrative capacity, significant advancements in aligning with international tax standards are likely to remain slow over the next few years. Ongoing collaboration with organizations such as the International Monetary Fund and CIAT will be critical for building the legal and technical infrastructure needed to enhance Haiti’s participation in the global tax system.
Future Outlook: Predicted Changes and Strategic Recommendations
In 2025 and the years ahead, Haiti’s taxation landscape is projected to undergo incremental reforms aimed at strengthening revenue mobilization, improving compliance, and modernizing tax administration. The government, under continued pressure from fiscal deficits and international partners, is expected to intensify efforts to broaden the tax base and address chronic under-collection. As of 2024, tax revenue has hovered at approximately 13% of GDP—a figure considerably below regional averages—prompting renewed focus on both policy and administrative improvements (Ministère de l'Économie et des Finances).
Recent legislative initiatives include proposals to revise the General Tax Code, with the aim of simplifying tax structures, reducing exemptions, and improving clarity for taxpayers. Haiti’s 2023–2024 budget introduced measures such as adjustments to VAT rates, increased excise taxes on select goods, and strengthened enforcement mechanisms targeting both businesses and high-net-worth individuals (Direction Générale des Impôts). These measures are expected to continue into 2025, with authorities signaling intent to further automate tax collection and expand digital filing systems, thereby reducing evasion and ensuring more timely compliance.
Compliance remains a key challenge. According to official sources, less than 30% of registered businesses and a much smaller fraction of individual taxpayers file or pay taxes regularly. To address this, the Direction Générale des Impôts (DGI) has announced a phased rollout of an online taxpayer portal, starting in metropolitan areas and gradually expanding nationwide between 2025 and 2027. The initiative is designed to facilitate registration, filing, and payments, while increasing transparency and reducing opportunities for corruption (Direction Générale des Impôts).
Looking ahead, strategic recommendations for taxpayers include early adaptation to digital compliance tools, proactive engagement with new regulatory requirements, and timely consultation with tax professionals to navigate ongoing reforms. For policy makers, prioritizing capacity building within the tax administration, strengthening taxpayer education, and enhancing anti-evasion frameworks will be pivotal.
- Events: Ongoing budget reforms, digitalization of tax administration, and legislative updates are expected through 2026.
- Law: Anticipated amendments to the General Tax Code and stricter enforcement regulations.
- Compliance: Gradual expansion of e-filing; focus on reducing informal sector non-compliance.
- Key statistics: Tax revenue at ~13% of GDP, <30% business compliance rate, ongoing digital adoption targets.
- Outlook: Progressive modernization; slow but steady improvements in compliance, efficiency, and revenue collection through digital transformation and legal reforms.
