Sint Maarten (Dutch Part)

As of February 5, 2025, employers in Sint Maarten have several tax obligations, including payroll taxes and other levies. Note that this information is current as of today's date and might change in the future.

Payroll Taxes

• Wage Tax (Loonbelasting): This is a progressive tax withheld from employee wages. It's submitted and paid monthly by the 15th of the following month.
• Social Security:
  • AOV (Old Age Insurance): Employers contribute 7.5% of the employee's gross salary up to ANG 100,000 annually.
  • AWW (Widows and Orphans Insurance): This is included in the AOV contribution.
  • AZV (Health Insurance): Employers contribute 8.3% of the employee's gross salary up to ANG 67,816.32 annually. These contributions are due monthly by the 15th of the following month.

Annual Reporting Requirements

• Summary Wage Statement (Verzamelloonstaat): Filed annually by January 31st, this statement details all employed individuals, including directors and commission-based workers. Businesses with fewer than five employees can submit physical copies, while those with five or more must submit digitally.
• Third-Party Statement (Opgaaf Derden): Also due by January 31st, this statement reports payments made to individuals or entities outside of an employer-employee relationship. Submission methods mirror those of the Summary Wage Statement.

Other Business Taxes

• Profit Tax (Winstbelasting): Levied on company profits, with varying rates and deductions. A provisional return is due on March 31st, while the final return and tax payment are due on June 30th of the following year.
• Turnover Tax (BBO/TOT - Belasting op Bedrijfsomzetten/ Turnover Tax): A sales tax (5% rate as of 2024) applied to goods and services. Returns are filed monthly or quarterly depending on the turnover volume.

Additional Considerations

Employers should be aware of potential liabilities for Turnover Tax on services rendered by foreign providers. Additionally, they should maintain accurate records of independent contractors, including names, addresses, identification numbers, and telephone numbers, for reporting purposes. The deadline for this report is January 31st. Companies employing expats can explore the Expat Tax Ruling to potentially reduce tax burdens.

Employee tax deductions in Sint Maarten (Dutch Part) involve various considerations for both residents and non-residents.

Wage Tax (Loonbelasting)

Wage tax is deducted directly from employees' salaries by the employer. There are two wage tax tables:

• Periodic Wage Tax Table: Used for regular salary payments.
• Extra Earnings Wage Tax Table: Applied to one-time payments like vacation pay, bonuses, and other extra earnings. The extra earnings table generally results in a higher tax deduction compared to the periodic table for the same gross amount.

Social Security Contributions

While not technically tax deductions, social security contributions are mandatory withholdings from an employee's salary:

• Old Age Security (AOV) & Widows and Orphans Insurance (AWW): Employees contribute 6.5% of their salary up to ANG 100,000.
• Health Insurance: Mandatory for those earning up to ANG 67,816.32 annually, with employee contributions set at 4.2% of their salary.

Personal Deductions (for Residents)

Sint Maarten offers two main categories of personal deductions to resident taxpayers:

• Standard Deduction: A fixed deduction of ANG 500 from employment income.
• Actual Expense Deductions: Residents can opt to deduct actual employment-related expenses if they exceed ANG 1,000 annually, instead of taking the standard deduction. This may be more advantageous for individuals with significant work-related expenses.

Tax Year and Deadlines

The tax year in Sint Maarten aligns with the calendar year. Important deadlines for 2024 tax returns are:

• Individual Income Tax Return (Form IB Model A and Model B): Due on May 31st, 2025.
• Provisional Profit Tax Return (for Businesses): Due on March 31st, 2025.

Remote Worker Exemption

Sint Maarten provides a tax exemption for remote workers who meet certain criteria:

• The remote worker does not stay in Sint Maarten for more than 183 days within a 12-month period.
• The remote worker does not receive payment from any employer or withholding agent in Sint Maarten. This means the individual's income is sourced outside of Sint Maarten.

General Information

The tax system in Sint Maarten is designed to ensure the funding of social security programs and public services. Understanding these deductions and contributions allows both employers and employees to maintain compliance and manage their finances effectively. This information is current as of February 5, 2025, and is subject to change due to potential future updates in tax laws and regulations. It's always recommended to consult with a tax advisor for the most accurate and up-to-date information.

Sint Maarten (Dutch part) levies a Turnover Tax (TOT) on most goods and services.

Turnover Tax (TOT)

• Rate: The standard TOT rate is 5%.
• Exemptions: Basic necessities like certain food products, water, electricity, and cooking gas are exempt. Some other goods and services may also be exempt.
• Registration: All businesses operating in Sint Maarten, including non-residents generating revenue there, must register for TOT, regardless of turnover.
• Filing: Monthly tax returns are required, even if turnover is nil. Non-resident businesses are considered domiciled at the Inspectorate of Taxes for TOT purposes. Services are considered provided in Sint Maarten if they are 'consumed' within the country.

Other Relevant Tax Information (as of February 5, 2025)

• Profit Tax: Businesses are required to pay provisional profit tax, with the deadline typically at the end of March. More details can be found by contacting the Inspectorate of Taxes or checking their website.
• Income Tax: The deadline for submitting annual income tax returns is typically at the end of May. Specific forms and required documentation can be found on the government website dedicated to taxes and online services.
• Import Duties: Sint Maarten does not levy TOT on imports. However, it's important to be aware of potential customs duties and exemptions on specific goods like tobacco and alcohol when entering other countries, such as the US, after purchasing them in Sint Maarten. These rules may vary depending on the destination country.

It is important to note that tax laws and regulations can change, and this overview is based on available information as of today, February 5, 2025. Always consult with a tax professional or the Sint Maarten Tax Administration for the most up-to-date information and specific guidance on your tax obligations.

Sint Maarten offers specific tax incentives primarily for agricultural land owners and businesses as of 2025. Furthermore, the government is exploring options for broader tax reform and relief.

Tax Incentives for Agricultural Land Owners

As of January 1, 2025, a new tax package offers advantages to owners of agricultural land. Details about specific incentives within this package are not yet publicly available.

Tax Reform and Relief

Sint Maarten's government recognizes the need for tax relief and reform to improve the business climate, stimulate economic activity, and create jobs. The private sector is being consulted in the development of a new tax system focused on fairness, increased productivity, wealth creation, and local employment growth. However, the specifics of these future reforms and the timeline for implementation are still under discussion.

Other Tax Considerations

While details on specific programs are limited, Sint Maarten's tax system includes other areas where tax benefits or considerations may apply:

• Tax Exempt Companies: A form of tax relief exists for companies involved in financing, investment, holding company, and licensing activities, potentially granting a 100% exemption from profit tax under certain conditions. However, it's important to note that this regime is expected to be abolished in the future.

• Private Fund Foundations: These can be used for investment, asset protection, and estate planning, potentially offering tax advantages. Professional guidance is recommended to understand the specifics.

It's crucial to consult with a tax advisor or the Sint Maarten tax authorities for the latest details and to determine eligibility for any tax incentives. Information provided here is based on available data as of February 5, 2025, and may be subject to change as policies evolve.