Tax
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.

A levy of Profit Tax is applicable to corporations as Public Limited Liability Companies, Partnerships, and Foundations that take aim at profit making. The local activities will be considered for tax generally at a standard rate of 34.5% of profits and is payable to the Island Receiver. The law provides various incentives in order to stimulate investment. These incentives include tax credits on investments, depreciation acceleration, and tax holidays. (The latter is elaborated on in the tax holiday section of incentives in accordance with the New Fiscal Frame Work NFR).

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.

Income greater than	but less than	Tariff in %
0	10,800	0
10.800	27.400	15,60
27.400	39.500	23,40
39.500	52.200	32,50
52.200	69.200	39,00
69.200	116.800	46,80
116.800		57,20

All amounts in Netherlands Guilders

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	5.5%	4.5%
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.

The abbreviations ZV / AVBZ stand for 'Health Insurance' and 'General Insurance on Special Medical Expenses.' The premium for health insurance is 10.4% and is divided in 8.3% employer contribution, 2.1% employee 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 is a tax on business turnover and services realized by entrepreneurs or businesses in accordance with their business in St. Eustatius. This tax is an indirect tax with the character of a consumption tax and is not imposed on imports.

The payments are made on a monthly bases to the Federal Receiver.

There are two tax rates for turnover tax:
Certain basic necessities,
The overall taxed rate is 3% on all deliveries of goods and services.

Exempts are among others:
The delivery of goods and services rendered by entrepreneurs/businesses in the outside the local sector;
The delivery of transfer 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 none local sector performed by lawyers, legal and tax advisors, accountants, consultants, and notaries;
Turnover realized on transport services by aircraft or sea vessels.

Important note: Major changes have occurred with the introduction of the New Fiscal Frame Work NFR completed in around 2002. It is recommended to consult a tax adviser accredited to the Dutch Windward Islands.

© 2005-2006 St. Eustatius Government and Turquoise Interactive.