Who has to pay Turnover Tax?
The turnover tax must be paid by an entrepreneur or the business. The business or entrepreneur must file a turnover tax return and pay the declared amounts of turnover tax monthly.
When are you regarded as an entrepreneur?
A business or entrepreneur is: anyone who carries on a business or profession independently as well as any person who exploits an asset in order to obtain sustainable income from it. It is not important whether you as an entrepreneur make a profit or a loss, you have to file and/or pay turnover tax.
This means that both natural persons (sole proprietorship) and legal entities (a partnership, a General Partnership (V.O.F.), A Limited Partnership (C.V.), a Private Limited Company (B.V.) or a Public Limited Company (N.V.)) or a Foundation can be regarded as entrepreneurs for turnover tax purposes.
The nationality of the entrepreneur is not important.
If a foreign entrepreneur provides services on Sint Maarten, he is also an entrepreneur for his turnover and therefore turnover tax must be paid on Sint Maarten. (The only exception to this rule is when an exemption applies).
Please note that sales of goods via (for example) Facebook may qualify you as an entrepreneur and those sales are subject to turnover tax. A (one-off) sale of your car does not lead to entrepreneurship. However, if you are going to sell several cars, you are an entrepreneur. All entrepreneurs who regularly sell goods or services through internet are required to register and pay turnover tax.
What is Turnover tax and how does it work?
The turnover tax is calculated on the business turnover which is defined as the total fees received by an entrepreneur for the sale of goods and performance of services through in the course of his business. The fee is the total amount charged when selling a product (goods) or on the service provided.
What is the current turnover tax rate?
The turnover tax rate is 5%
Is business turnover from home rental activities exempt from turnover tax?
A turnover tax exemption applies to the portion of the business turnover for which the Sint Maarten based entrepreneur can demonstrate that it is generated by the rental of immovable property which is:
- designed and intended for permanent residence
and - rented to private individuals residing in Sint Maarten.
When should turnover tax be filed and paid
Turnover tax filing and payment is due by the 15th of the month following the month in which the sales are made. For example; for sales made in the month January 2023, the tax return must be filed and the payment must be made by 15th February 2023.
You can also submit an improvement to your declaration. You then submit the declaration again, but with the right figures. If a revised turnover tax return must be submitted, it must take place via the online Portal: onlineservices.sintmaartengov.org or at the Tax Administration.
The turnover tax period can be a month or a year. Both the declaration and the payment must be made within 15 days of the end of each month. Even if you have not realized a turnover in a certain period or if you claim any turnover tax exemptions, you must submit a return to the Tax Administration. If the 15th of the month is on a weekend or public holiday, the declaration and payment must be made no later than the first business day after the 15th of that month.
On request, certain entrepreneurs can submit declarations per year. The entrepreneurs who may be eligible to submit an annual declaration are:
- Dormant entrepreneurs (not active entrepreneurs).
- Entrepreneurs who perform more than 90% exempt services.
To apply for an annual turnover tax, you must send an e-mail to: TaxInfo@sintmaartengov.org.
Entrepreneurs who have received permission from the Tax Inspector to file a turnover tax return on an annual basis have 15 days after the end of the year (until 15 January) to submit their return and pay the turnover tax.
What are the consequences of non-filing?
If the business does not file the turnover tax, the Inspector will impose an estimated assessment which may include a penalty:
- First omission: no fine
- Second omission: ANG. 50
- Third or more omission(s): ANG. 100
What are the consequences for non-payment of turnover tax or late payment?
If the entrepreneur has not paid the turnover tax or missed the deadline, the Inspector can levy an additional assessment which includes a penalty:
- First omission: a fine of 5% of the amount of the additional tax assessment with a minimum of ANG. 50 and a maximum of ANG. 2.500.
- Second omission: a fine of 10% of the amount of the additional tax assessment with a minimum of ANG. 100 and a maximum of ANG. 5.000.
- Third or more omission(s): a fine of 15% of the amount of the additional tax assessment with a minimum of ANG. 150 and a maximum of ANG. 10.000.
If the entrepreneur has systematically not submitted the turnover tax return or has not done so on time, the Inspector will impose a fine of up to ANG. 2.500.
When imposing a default penalty for turnover tax, the Inspector takes into account the number of times that a default has been detected in the previous nine (9) periods.
If the entrepreneur has not or partially not paid the turnover tax due to the return, because too little has been declared, a default penalty of 15% of the amount of the additional tax assessment with a minimum of ANG25 and a maximum of ANG 10.000 will be imposed.
Are there any Turnover Tax exemptions?
Subject to conditions, a turnover tax exemption may apply to certain portions of turnover. If a turnover tax exemption is applicable to (a portion of) the turnover of your business, you are still required to submit a tax return to the Tax Administration with the amount of the exempted.
The following exemptions: List Turnover Tax Ordinance.