The Minister of Finance is politically responsible for the
correct levying of taxes. Before taxes are implemented on
the Islands of the Netherlands Antilles, the Antillean Parliament
must approve them.
Profit Tax (Corporate Income Tax)
A levy of Profit Tax is applicable to
corporations as Public Limited Liability Companies, Partnerships,
and Foundations that take aim at profit making. The on-shore
activities will be considered for tax and the offshore activities
will be exempted. The law provides various incentives in
order to stimulate investment. These incentives include
credits on investments, depreciation acceleration, and tax
holidays. (The latter is elaborated on in the tax holiday
section of incentives)
Wage Tax and Income Tax
Wage tax is based on a P.A.Y.E. (Pay
As You Earn) system. The employer has the responsibility
of deducting wage tax and premiums from the salaries of
employees and paying these amounts to the Island Receiver.
Income tax is the summary of wage taxes and taxes on any
other form of income. Wage tax is viewed as a pre-payment
of income tax and is therefore deductible. Below is a table
of income tax rates based on an annual income
All amounts are in Netherlands Antilles Guilders (ANG)Social
Security Premiums AOV/AWW
The abbreviations A.O.V. and A.W.W. stand
for “General Old Age Insurance” and “General
Widow's and Orphan's insurance”. Both employer and
employee have to contribute to social security premiums.
The percentages are:
Premium
Employer Employee
A.O.V 6%
5%
A.W.W.
0.5%
0.5%
The A.O.V / A.W.W. premiums are paid
in the same manner of the Wage Tax payment schedule.
Medical Insurance Premium ZV/AVBZ
The abbreviations ZV / AVBZ stand for
“Health Insurance” and “General Insurance
on Special Medical Expenses”. The premium for health
insurance is 12.5% and is divided in 8.3% employer contribution,
2.1% employee contribution, and 2.1% government contribution.
The AVBZ is a social insurance against risks that are difficult
to insure. This regards illnesses of long duration (chronic),
long hospitalization, psychiatric nursing, relief and care
of mentally and physically handicapped persons. The premium
is 2% of monthly salary and is divided in 1.5% on the account
of the employee and 0.5% on the employer.
The ZV/AVBZ premiums are also paid in
the same manner of the Wage Tax payment schedule.
Turnover Tax (TOT)
Turnover Tax is a tax on business-sales
realized by entrepreneurs or businesses in accordance with
their business in the Netherlands Antilles. This tax is
an indirect tax with the character of a consumption tax
and is not imposed on imports.
Exempts are among others:
- The deliveries of goods and rendered
services by entrepreneurs/businesses in the off-shore
sector;
- The delivery of immovable properties
as far as transfer-tax (4%) is paid;
- The services of banks and other financial
institutions for banking and financial performances with
the exception of loans and mortgages, the transfer of
money, the saving of stocks and shares and other papers
of value;
- The services rendered to entrepreneurs/businesses
in the off-shore sector performed by lawyers, legal and
tax advisors, accountants, consultants, and notaries;
- Turnover realized on transport services
by aircraft or sea vessels.
There are two tax rates for turnover
tax:
- 1%:Due on certain basic necessities,
however, turnover realized hotels and
Catering establishments will be taxed at a rate of 3%.
- 3%:Due on all other deliveries of
goods and services.
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