Suriname - Income Tax | KPMG | GLOBAL

Suriname - Income Tax

Suriname - Income Tax

Taxation of international executives

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Tax returns and compliance

When are tax returns due? That is, what is the tax return due date?

A provisional tax return needs to be filed by 15 April of the current year with a final return due by the end of April of the following year or within 4 months upon emigration if that’s earlier.

What is the tax year-end?

The normal tax year is the calendar year. Under certain circumstances an entrepreneur or a company can use a different accounting period. In that case a provional tax return has to be filed within 2.5 months after the current tax year has commenced.

Residents

Individual income tax is imposed on the worldwide income of residents.

Non-residents

Non-residents are subject to tax on their total income from certain Surinamese sources.

Tax rates

What are the current income tax rates for residents and non-residents in Suriname?

Residents

The individual income tax rates for 2017 are:

Taxable income (SRD) Rate (%)
Up to   2,646 0
2,647
14,002.80 8
14,002.81 21,919.80 18
21,919.81 32,839.80 28
Over   32,839.80 38

Non-residents

The same tax rates apply to non-residents.

Residence rules

For the purposes of taxation, how is an individual defined as a resident of Suriname?

The residence of an individual is determined according to his specific circumstances. The decisive factor is the place where the taxpayer has his centre of vital social and economic interests.

Is there a de minimus number of days rule when it comes to residency start and end date? For example, a taxpayer can’t come back to the host Suriname for more than 10 days after their assignment is over and they repatriate.

No

What if the assignee enters the Suriname before their assignment begins?

The assignee might be regaded as a resident of Suriname as of the date of entry.

Termination of residence

Are there any tax compliance requirements when entering or leaving the Suriname?

Unknown.

Departure tax

Unknown.

What if the assignee comes back for a trip after residency has terminated?

A resident individual who has been abroad and returns to Suriname within 1 year of his departure and has not become a resident elsewhere is deemed to have maintained his residency in Suriname during the period he spent abroad.
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Types of taxable compensation

What categories are subject to income tax in general situations?
There are five recognized categories of income, namely:

  • income from real estate;
  • investment income (e.g. dividends, profit distributions and interest);
  • business and employment income;
  • income from life-dependable rights received as periodical payments (annuity schemes); and 
  • income representing the interest from life insurance policies with annuity clauses (lump sum or periodical payments).

Tax-exempt income

Are there any areas of income that are exempt from taxation in your Suriname? If so, please provide a general definition of these areas.

Exempt income includes:

  • state pensions, which are fully exempt;
  • private and business pensions, which are exempt up to an amount determined by multiplying by two the maximum annual income from the state pension. Currently, the maximum exemption amount is approximately SRD 6,600 (i.e. twice SRD 3,300);
  • occasional gains realized by individuals, unless they are derived in the context of business activity;
  • the first SRD 5,000 on profits derived from the closure of a business;
  • vacation allowances, gratuities and bonuses up to the amount of the individual’s monthly wage, with an annual maximum of SRD 4,000 (2017);
  • child allowances up to the monthly amount of SRD 50 per child with a maximum of SRD 200 per family (2017); and
  • a share in the profit of cooperative associations, obtained by the members in proportion to their contributions, provided the purpose of the association is not related to the business or professional activities of its members.

Expatriate concessions

Are there any concessions made for expatriates in your Suriname?

No

Salary earned from working abroad

Is salary earned from working abroad taxed in Suriname? If so, how?

Residents, including resident individuals with the expatriate concession, are subject to Suriname income tax on their worldwide income. Relief of double taxation may be (partly) available in Suriname depending on the fact whether or not a tax treaty is in place with the country in which the services are performed or based on the national rules concerning international tax relief.

Taxation of investment income and capital gains

Are investment income and capital gains taxed in your Suriname? If so, how?

Capital gains derived by individuals are subject to tax only if those are derived from a business activity carried out in Suriname.

Occasional capital gains derived by individuals and gains derived from the transfer of an owner-occupied dwelling are exempt from tax.

Dividends, interest, and rental income

There is a 25% withholding tax on dividends and other similar payments by resident corporations, partnerships limited by shares and other corporations with share capital.

This withholding tax is an advance payment of the final tax and is therefore creditable against the final tax liability.

Other similar payments subject to the dividend withholding tax include:

  • indirect or direct profit payments;
  • liquidation payments;
  • stock dividends, which are taxed at their nominal value;
  • full or partial repayment of paid-up capital to the extent that the corporation has made a net profit, unless the capital of the company has been reduced through amendment of its statutes;
  • payments on profit-sharing notes including payments received on redemption or purchase thereof; and
  • interest on debentures entitling the holders to profit distributions.

The distributing entity is required to pay the tax within a month of the distribution.

Resident investment companies, whose exclusive or almost exclusive object is the acquisition, holding, management and disposal of stocks and shares may be exempted from the dividend withholding tax by the Ministry of Finance.

Non-residents :
Dividends are subject to a 25% final withholding tax on the gross amount.

Interest and royalties are not subject to withholding tax.

Income from debt claims secured by mortgage on real estate situated in Suriname and profit-sharing rights in a Surinamese company not resulting from shares are subject to tax at the same progressive income tax rates as apply to residents.

Gifts

There is no gift tax in Suriname.

General deductions from income

What are the general deductions from income allowed in your Suriname?
In general, in computing taxable income all expenses incurred which are necessary to obtain, collect or maintain income may be deducted.

The following personal expenses may be deducted from taxable income:

  • the amount of annuities, pensions, alimony and other periodical payments to relatives or third persons;
  • premiums paid for life insurances, which include an annuity clause providing for the possibility to receive a payment in instalments instead of a lump sum and premiums paid for other periodical payments are deductible for up to 10% of the total income. The premiums are deductible if the proceeds are intended as a private old age fund and they are also deductible if paid to a non-resident insurance company;
  • private pension premiums are deductible up to a maximum amount of 10% of the total income;
  • premiums paid for funeral insurance are deductible up to a maximum of 10% of the total income;
  • expenses for sickness, maternity, accident, disability or death of the taxpayer, the taxpayer’s spouse, minor children and foster children up to a maximum of 10% of the taxpayer’s total income;
  • old age pension premiums paid by the taxpayer or withheld from his salary under the Old Age Fund Law;
  • payments made by the taxpayer for the support of needy relatives to the extent that such payments exceed 10% of the total income (only the excess part is deductible);
  • study costs in relation to professional training of children, children-in-law and foster children to the extent that such costs exceed 10% of total income (only the excess part is deductible). No deduction is given for board, lodging, clothing or pocket money for children living at home; 
  • necessary medical expenses incurred for the taxpayer, his spouse, minor children or foster children to the extent that such costs exceed 10% of total income (only the excess part is deductible);
  • mortgage interest on a maximum mortgage amount not exceeding SRD 125,000 to finance the owner-occupied dwelling;
  • costs of outside painting of an owner-occupied dwelling once every 3 years; and
  • SRD 8,000 as subsistence costs for each mentally or physically handicapped child insofar as such child receives no other benefit.

In the case of married individuals, all deductions are allocated to the spouse with the higher income.

Calculation of estimates/prepayments/withholding

How are estimates/prepayments/withholding of tax handled in your Suriname? For example, Pay-As-You-Earn (PAYE), Pay-As-You-Go (PAYG), and so on.

PAYE

When are estimates/prepayments/withholding of tax due in your Suriname? For example, monthly, annually, both, and so on.

Taxes are generally collected during the tax year by way of withholding and by advance payments. If the tax withheld or advance payments are not final, a final assessment must be imposed in the following year.

A self-assessment system applies and the tax calculated on the basis of the advance tax return must be paid in four equal installments by 15 April, 15 July, 15 October and 31 December. The sum of the advance payments may not be less than the tax due on the most recent final return. If, under the taxpayer’s assessment, the tax is less than that from the previous year, he must inform the tax administration before 15 February and the tax administration must approve the assessment.

Relief for foreign taxes

Is there any Relief for Foreign Taxes in your Suriname? For example, a foreign tax credit (FTC) system, double taxation treaties, and so on?

No unilateral relief for the avoidance of double taxation exists. There are tax treaties effective with Indonesia and the Netherlands.

General tax credits

What are the general tax credits that may be claimed in your Suriname? Please list below.

Taxpayers may deduct a tax credit of SRD 1.500 (2017) from the income tax due.

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