Discover employer and employee tax responsibilities in Sint Maarten (Dutch Part)
Employers have several tax responsibilities, including payroll taxes and additional taxes.
Employers are responsible for several types of social security premiums:
The deadline for these contributions is a monthly submission with payment due by the 15th of the following month.
Employers are also responsible for Wage Tax (Loonbelasting), which is a progressive tax applied to an employee's wages and withheld by the employer. The deadline for this is also a monthly submission with payment due by the 15th of the following month.
In addition to payroll taxes, employers may also be responsible for:
There may also be other potential taxes, such as Room Tax for tourism-related businesses, Excise Duties on specific goods like gasoline, and Transfer Tax on real estate transactions.
In Sint Maarten (Dutch Part), the tax system offers specific deductions for employees. Resident taxpayers are entitled to more deductions than non-residents. There are two main categories of deductions for employees: standard and actual expense deductions.
Standard Deduction: Residents can claim a fixed deduction of ANG 500 from their employment income.
Actual Expense Deductions: Instead of the standard deduction, residents can choose to deduct their actual employment-related expenses, provided they exceed ANG 1,000 annually. This allows for a more personalized approach to tax filing.
When claiming actual expenses, proper documentation is crucial for tax approval.
Sint Maarten has a mandatory social security system with contributions from both employers and employees. These contributions are not technically tax deductions but are mandatory withholdings that reduce your taxable income.
Old Age Security (AOV) & Widows and Orphans Insurance (AWW): Employees contribute 6.5% of their salary up to a maximum of ANG 100,000 towards AOV and AWW.
Health Insurance: Health insurance is mandatory for those earning up to ANG 67,816.32. Employee contributions are 4.2%.
Understanding these deductions and contributions is essential for accurate tax filing and potentially reducing your tax burden.
In Sint Maarten, the primary form of taxation is the Turnover Tax (Belasting op Bedrijfsomzetten or BBO). This tax is applied to the value of goods and services provided by businesses, with the standard BBO rate being 5%. Certain essential goods and services, such as basic necessities, water, electricity, and cooking gas, may be exempt from the BBO.
Businesses that exceed a specific revenue threshold are required to register for BBO with the Tax Authority of Sint Maarten. Typically, businesses file BBO returns either monthly or quarterly, depending on their turnover, and make the corresponding payment.
It's important to note that the tax system in Sint Maarten could evolve in the future, possibly with the introduction of a VAT system. Therefore, staying updated via the Tax Authority and relevant tax advisors is crucial.
Tax incentives are a strategic tool used by governments to stimulate economic growth and development. They come in various forms, each with its unique benefits and qualification criteria.
To take advantage of tax incentives, businesses typically need to submit a formal application with supporting documentation. This may include:
For authoritative information, businesses can consult the Tax Authority of Sint Maarten and the Sint Maarten Investment Promotion Agency.
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