• Domestic taxpayer
  You are a resident taxpayer if you live in Sint Maarten and have received income.
• Foreign taxpayer
  You are a foreign taxpayer if you do not live on Sint Maarten but have received income from Sint Maarten. You only have to file a tax return (form B) on the income you received from Sint Maarten.
• Sole Proprietor
  You are a resident of Sint Maarten and you operate a business.

On what do you have to pay tax?
You pay tax on your taxable income. The taxable income is the net income enjoyed in the tax year in question, reduced by the losses still to be offset (Sole Proprietor). The net income is the income minus personal reductions, personal expenses and extraordinary expenses.

Income consists of:

• Income from employment.
• Profit from business (Sole Proprietor).
• Income from movable capital.
• Income from real estate.
• Periodic benefit.

Employment income
If you are employed by an employer, you receive wages, also called income from wages or earned income. At the end of the year, you receive an annual statement from your employer, also called a wage tax card. Your annual statement contains the following information:

• Amount of wages you have received.
• Amount of deducted AOV/AWW, AVBZ and BZ premiums.
• Amount of wage tax withheld.

You can use the annual statement for your income tax return. If you have several employers in one year, for example due to different jobs, you will receive a different annual statement from each employer.

If you receive a pension, this is also taxable income, and you must file a tax return for it. In addition, you may have made additional earnings, this income also belongs within the income tax return.

Income from real estate
If you own property and rent it out, you must report 65% of the actual income in your tax return. Interest and expenses arising from the loan associated with the property in question may be deducted from your taxable income. Premiums related to this loan may also be deducted.

Periodic payments
A periodic payment is a payment that you receive on a regular basis. With a periodic payment, a number of conditions must be met.
These conditions are as follows:

• The payments must be regular.
• The payments must arise from the same cause.
• The total amount is uncertain.
• The payments stop when you die.

An example of a periodic benefit is an annuity paid, for example, with a life insurance policy.

Periodic payments that do not meet the above conditions fall under another form of income, such as earned income, and must be included as such on your tax return.

Personal deductions
To arrive at your net income, personal deductions must be deducted from your income. Personal deductions include:

• The employee contribution of the AOV/AWW premium, which you paid in the year through deductions from your salary.
• The amounts you paid in the tax year on the assessment AOV/AWW.
• The premiums for annuities and deposits into blocked savings accounts (subject to conditions).
• The interest and costs for a student loan, for training or studying for a profession for yourself.

Personal expenses
In some cases, personal expenses are deductible from your taxable income. The following personal expenses are deductible:

• Interest and fees on a mortgage loan or other type of loan to finance your own home.
• Premiums on an expiring life insurance policy.
• Interest and fees on other money loans (called personal loans).
• Gifts to church, charitable, cultural, scientific and charitable institutions on Sint Maarten.

Extraordinary expenses
Extraordinary expenses may also be deductible from your taxable income. Extraordinary expenses include the following:

• Living expenses for children age 27 or older, close relatives and sick or infirm children up to age 26.
• Sickness, childbirth, disability and death.
• Training or study for your own a profession.
• Study costs of children up to and including 26 years of age who are pursuing further education.

Loss offset (Sole Proprietors)
If your taxable income was negative in one or more of the previous five years, you may offset that negative income against the positive income for the year for which you are filing your tax return.

How to file your income tax return?
You can only file your income tax return at the counter at the Tax Administration. You have two(2) months to do this after the date stated on the invitation. If you cannot file your tax return within two(2) months, you can request a postponement before the due date.

No postponement will be granted if leaving Sint Maarten permanently.

If you have not received an invitation, you must file your tax return within 36 months after the tax return for the year in question can be filed.

Once you have filed your return, the Tax Inspector will impose the assessment based on the return you have filed. If the Inspector believes that your return is incorrect, the Inspector may deviate from your return. If an assessment is imposed, you will receive it by mail.

What are consequences of not filing or not filing on time?
If you do not file your return within 36 months or if you have requested and received an extension, you will receive a reminder. The Inspector will then give you another opportunity to file your return. If you do not file the return after this, the inspector will impose an ex officio assessment on you. In addition, a fine will also be imposed. The amount of this fine ranges from ANG 250,- for the first time to ANG 2,500,- for the fifth time late filing or not filing at all.

When to expect the final assessment
The Inspector must issue the final income tax assessment to you within 5 years after the tax year has ended. If you have been granted an extension for filing your tax return, this also extends the term for the inspector to impose the final assessment.

Along with the final income tax assessment, the inspector also imposes the final assessment for the AOV/AWW, and ABVZ premiums.

You must pay the imposed assessment within 2 months after the date of assessment.

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Income Statement

What is an income statement
An income statement is an official statement containing your income information for a particular tax year. The income statement can be requested from the Tax Office. You can only apply for the income statement if all your income tax returns have been filed.

When do you need an income statement?
You may need an income statement for, for example:

• An application for study financing at the DUO (Dienst Uitvoering Onderwijs).
• A residence permit and/or family reunification with the Immigration Dept.
• An application for legal aid from a pro bono lawyer.
• An application for AOV allowance at the USZV.

What does an income statement contain?
Your income statement contains the following information:

• Your income information (the tax year to which the income statement relates).
• Your name, CRIB number and ID number.
• The official stamp of the Inspectorate of Taxes.

How do I obtain an income statement?
You cannot apply for the income statement until you have filed your income tax return. You can submit request for an income statement to taxinfo@sintmaartengov.org.