Tips to avoid an incorrect Tax Income File

The most common mistakes and questions, are listed on this page to help you file your income tax form correctly. It is important that you file your income tax form without mistakes, because it avoids delay and uncertainties in the process.

You will find questions and information per subject, that may help you when filing your tax income tax form and prevent you from making (the most common) mistakes.

Personal data (marital status) in the declaration:

  1. The CRIB number of the partner is not filled in correctly.
    If the CRIB number of the partner is not known, please request it from the Tax Administration.
  2. For income tax purposes, you are considered married if you have been married for the entire tax year and you and your spouse lived in Sint Maarten.
    Did you get married in the tax year /divorced / live sustainably separately / if your spouse has died; you will be considered an unmarried taxpayer for that year. In those cases, fill in as marital status; unmarried.
  3. If you are married, you can request to be taxed separately if you are married outside community of goods. You must submit a copy of the marriage certificate. 

Other questions in the declaration:

  1. Are you requesting the application of the special rate? This question is often answered with a yes, even though there is no income component to which the special rate applies. For example, the special rate applies to dismissal pay and transfers. Note: one-off benefits such as bonus and holiday pay are included in the special remuneration table in the payroll tax. This is different from the application of the special rate in income tax.

Wages, pensions, benefits and profits from the company:

  1. Does the penshonado arrangement apply to you? This question does not apply to the local retiree. The penshonado scheme is a special scheme for taxpayers from abroad where certain conditions must be met. If you are a local pensioner with an AOV benefit and/or other pensions, you must answer NO to this question.
  2. Taxpayers do not declare all wages and other income from work received. The declared income will be increased by the undeclared additional income.
  3. Employee part Pension Fund is not filled in or incorrect amounts (AOV premium) are entered here. The correct amount of employee part pension fund is shown on the wage tax card under acquisition costs.
  4. Wherever the total premium has to be filled in, often only the employee contribution is filled in. Accurately copy the data from your wage tax card.
  5. Foreign deductions are filled in as domestic deductions. This is not correct. The foreign withholding is not a withholding tax for income tax. In the case of foreign income, you can apply for the deduction to prevent double taxation.
  6. In addition to his/her employment, the taxpayer also has a sole proprietorship, but does not declare the proceeds of this business.

Periodic benefits

  1. The alimony received (in accordance with court judgment) is not declared by the (former) spouse. This divorce payment is a periodic payment and forms part of the income to be declared.

Personal reductions

  1. The taxpayer wrongly does not declare the AOV/AWW premium received back in the tax year.
  2. The taxpayer declares the total premium withheld AOV/AWW as the AOV/AWW premium paid on assessment. When entering the AOV/AWW premium paid on assessment, proof of payment must be submitted.
  3. Taxpayer declares a life insurance policy with a capital distribution as a personal reduction.
  4. Taxpayer declares ordinary life insurance as term life insurance with mortgage deduction.
  5. Student debt repayment is personal. Parents pay off student debt for their children and want to deduct it from their own income. This is not allowed.

Personal expenses

  1. Interest personal loan (consumer credit) is deducted two times:
    once as interest and costs of money loan under Personal expenses and second as interest on student debt under Personal reductions. These must only be filled in under Personal expenses.
  2. Mortgage interest deduction is increased while taxpayer is not the owner of a property that is available to him as his main residence.

Extraordinary expenses

  1. Taxpayers increase subsistence support for children under the age of 27, who are either sick or deficient, without these children being sick or deficient.
  2. Taxpayers claim medical expenses for family members staying in an institution or nursing home without specifying actual illness costs. Costs of accommodation, electricity, water, food, drinks, laundry and recreation are not medical expenses.

We trust the information above helps you with filing your income tax form. If you still have questions, please contact the Tax Administration of Sint Maarten.