Tax Holiday

St. Maarten boasts an ideal climate for foreign investment and investment services, offering tax incentives for firms wishing to invest or establish companies to process their investments abroad. There are three areas of development that are specified for which a Tax Holiday can be considered.

I. Hotels and other Rest & Recreational Accommodations
II. Land Development
III. Industrial

The specific conditions that apply to each area are:

I. Hotels and other Rest & Recreational Accommodations

• The application for the tax exemption must be for the exploitation of a hotel or another rest & recreational accommodation;
• The company mentioned above must be geared towards the enhancement of foreign visitors;
• The construction and primary furnishing should encompass an investment of at least
  NAF 1.000.000 (Approx. $561.798);
• The company is expected to contribute to the broadening of the economic base of the Netherlands Antilles;
• There must be a minimum 25 rooms with a surface space of at least 30 square meters;
• There must be a creation of permanent employment of at least 5 Antilleans.

The above mentioned conditions are cumulative; the tax exemption will only be honored if all the conditions have been met.

II. Land Development

• There must be a minimum investment of Naf 500.000 (Approx. $277.778) excluding the value of the land;
• The land must be fallow;
• The minimum size of the parcel of land must be 2.5 hectares;
• A road and other infrastructural facilities such as plumbing, water, and electricity must be installed;
• Real estate must be developed
• The company must stimulate economic activity in the Netherlands Antilles
• The company must stimulate employment in the Netherlands Antilles
• The company’s goal must be land development

These requirements are also cumulative.

III. Industrial

• There must be a minimum investment of Naf 50.000 (Approx. $27.778)
• The company is expected to contribute to the broadening of the economic base of the Netherlands Antilles;
• There must be a creation of permanent employment of at least five (5) Antilleans, excluding board members.
• These requirements are also cumulative.

Application Procedure

1. The request for tax exemption should be submitted on a form, which has been approved by the Governor. This form can be acquired from the Directorate of Taxes based on Curaçao.
2. The form must be filled out completely, a Naf 25 stamp attached, and forwarded to the Governor. Only one application per form allowed. Incomplete forms will be rejected.
3. The application must contain:
   - Data on the amount of employment the project will generate specified by local and foreign
   - Information on financing methods; whether funds will be acquired locally or internationally
   - A detailed business plan including description and feasibility study of the project
4. Other relevant material such as maps, drawings, or any other aid deemed relevant for illustration or clarification may be annexed.
5. The interested party will be given the opportunity to conduct an oral presentation of the project to the St. Maarten Tax Holiday Committee.

The Committee will then forward its advice to the Executive Council who in turn advises the Directorate of Taxes. The Federal Directorate of Taxes will take the final decision then the candidate will be notified.