Taxation of international executives
Are there social security/social insurance taxes in your Sint Maarten? If so, what are the rates for employers and employees?
The employee's share of taxes for old age insurance (AOV) and widows and orphans insurance (AWW) is 6.5% of a maximum of ANG 100,000 gross wages. The employer contributes 7.5%. Income in excess of this amount is not subject to this tax. Expatriates may be exempt from this tax.
Coverage for health insurance for workers earning up to ANG 67,816.32 is compulsory. Contributions are 4.2% for the employee, 8.3% for the employer.
Employees are also insured against loss of income as a result of an accident that occurs at work. The premium varies from 0.5% to 5%, depending on the class of risk, to be paid fully by the employer. Maximum premium income is ANG 67,816.32.
The Algemene Verzekering Bijzondere Ziektekosten (AVBZ), or general insurance exceptional medical expenses, is a national social insurance from which the entire population of St. Maarten can derive rights. The AVBZ guarantees, among other benefits, medical care to persons suffering from a chronic disease or a mental or physical disorder. The premium charged to create the necessary funds amounts to, in general, 2% of taxable income, with a maximum charge of ANG 8,572 per year (2012). The employer's share amounts to 0.5% of the employee's income, with a maximum of ANG 2,143 per year (2012). A more recent premium cap has not been published yet.
Old-age pensioners are taxed at a rate of 1.5%.
Are there any gift, wealth, estate, and/or inheritance taxes in your Sint Maarten?
Gifts and receipts from an estate of a St. Maarten resident are taxable. Non-residents owning real estate on St. Maarten are also subject to these taxes. The rates (from 2% up to 24%) depend on the amounts received and the relationship of the beneficiary to the deceased or the donor. Gifts and receipts from estates of a non-resident shareholder of a St. Maarten company are not subject to St. Maarten estate and gift taxes.
Note that this tax is currently not levied by the government of St. Maarten.
The transfer of immovable property located on St. Maarten is subject to a 4% transfer duty.
Are there real estate taxes in your Sint Maarten?
Only 65% of income from immovable property is included in taxable income, and no deductions are allowed for maintenance. However, interest paid on a loan connected to the acquisition of immovable property is deductible up to the amount of declared income from that property. Any excess interest may be deducted against the declared positive income from the property in the next five years.
Please note that the aforementioned only applies in case of immovable property that is not held as part of a business or profession.
Are there sales and/or value-added taxes in your Sint Maarten?
A 5% turnover/sales tax is levied on the revenue derived from services and deliveries rendered by an entrepreneur or company on St. Maarten. Note that non-resident service providers are also subject to this tax.
A limited number of services and deliveries are exempt, such as:
An entrepreneur liable to turnover/sales tax must file a declaration with the Tax Inspectorate before the 16th day of the month following the month concerned at the Tax Collector’s office.
Are there unemployment taxes in your Sint Maarten?
Are there additional taxes in your Sint Maarten that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
The only tax levied by Customs Sint Maarten is tax/excise on unleaded gasoline.
A stamp tax is levied in two ways, in the form of stamps and as stamped paper.
Stamp tax applies to documents such as government licences, leases, agreements, and court documents. The rate depends on the type of document. As an example, the stamp tax for bank checks is ANG 0.25. The general rate for each page of a legal document is ANG 5.