Constitution

Tax system
ABB Algemene Bestedingsbelasting
When you are an entrepreneur on the BES islands then you will often need to take account of ABB. When will you, as an entrepreneur, need to take account of
ABB?

• You manufacture goods and sell these goods on the BES islands. If you produce goods you may be deemed to be a manufacturer* for the purposes of the ABB.
• You perform services on the BES islands.
• You import goods.

E “Algemene Bestedingsbelasting”(ABB) tin algún tarifa:

Bonèiru Saba i St. Eustatius
Tarifa general 8% 6%
Seguro 9% 7%
Eksportashon 0% 0%
Outo di famia 25% 25%
Outonan “masha limpi 0% 0%

Inkomstenbelasting:
The adjustment of the tariff. At the moment, tax bands varying from 12.5 to 47.5%, including 25% surtax, still apply. Soon, for most people there will only be one tariff: 30.4%. The “ouderdomsverzekering” (and not WAO), AOV/ AWW and “zorgverzekeringspremies” are also included in this tariff. These premiums will, therefore, no longer be charged
separately.Higher incomes will be taxed for “inkomstenbelasting” from $250.000,- at a tariff of 35.4%.

Mortgage interest is not deductible at the rate of 35.4% but is always deductible at 30.4%.
Income from substantial interest does not fall within the general tariff. A tariff of 5% will apply to this.

There will be a general tax- and premium-exempt sum of $9.750,- (Naf. 17.453,-). This sum can be increased by:
• $1.250,- (Naf. 2.238,-) per child, with a maximum of 2 children
• $200,- (Naf. 358,-) for those who are 60 years of age or older.

Opbrengsbelasting
The “opbrengstbelasting” is a new tax for Caribisch Nederland.
This law, together with the “vastgoedbelasting”, replaces the “winstbelasting”.
The principal rule for the “opbrengstbelasting” is that tax is paid on the (profit-) payments that are made by bodies, to taxpayers. These payments are called “opbrengsten”. The tax is 5% of the opbrengst and is deducted from the (profit-) payment by the distributing party.
It is therefore, not the tax payer who pays the tax but the withholding agent, (comparable to
“loonbelasting”).

At the end of each year quarter, the withholding agent is required to declare this to the
Belastingdienst/Caribisch Nederland and make payment of the tax which has been withheld, to the Belastingdienst/Caribisch Nederland.

The “opbrengstbelasting” is only applicable to bodies which are domiciled within Caribisch
Nederland. If that is the case; the Belastingdienst/Caribisch Nederland issues a domicile order.
Overdrachtsbelasting:
What is taxed?
The transfer of property situated in Caribisch Nederland and of ships registered in Caribisch Nederland is taxed.

If a property or a registered ship is transferred again within 6 months, the “overdrachtsbelasting” which has already been paid (on the initial transfer) can be deducted. On balance, the “overdrachtsbelasting” is not therefore paid again on the full value Transfer.

The term “transfer” requires to be interpreted broadly. The term is interpreted as including for example, the establishment of, the renunciation of and the termination of:

• a usufruct
• right of occupancy
• easements
• leasehold
• a right to build
• land (ground) rents

The tariff is 5%. The tax is levied from the purchaser, i.e. the transferee, who may be a natural but also a legal person. The notary plays an important role in respect of the “overdrachtsbelasting”. He ensures that the tax due is paid by tax return to the Belastingdienst

Vastgoedbelasting

The “vastgoedbelasting” is a new tax for Caribisch Nederland. “Vastgoedbelasting” is levied from owners of property. This does not apply to all property. The “vastgoedbelasting” does not apply to:

• The “own home”, that is the home which provides the main residence.
• Property which forms part of the business assets of an IB business (sole proprietorship).
• Property which is owned by a body that, for the purposes of the “opbrengstbelasting”, is not domiciled in Caribisch Nederland
• Other property belonging to inhabitants of Caribisch Nederland with a maximum value of $50.000,-.

What does this mean in practice?
That the “vastgoedbelasting” applies to:

• owners of second homes and,
• owners who rent out their property
• bodies which are in possession of a domicile order for the “opbrengstbelasting”.

What is the “vastgoedbelasting” levied upon?

“Vastgoedbelasting” is levied on income from property. Actual income is not taken into account.
The income is in fact established at 4% of the fair market value.

The tax amounts to 25% on this estimated return of 4%. The fair market value is determined by
official order every five years.You may object to this order.
Example:
If you possess a property with a value of $500.000,- the return amounts to $20.000,-.
On this amount you pay 25% tax, which is $5.000,-.