Report21-09-2023

Q: What is the government’s reason for adjusting the tax system in the Caribbean Netherlands?

• The principal aim is to simplify and update the system.

Q: How does the government propose to improve the spending power of people on low incomes?

• The government will do so primarily through non-fiscal measures.
• However, the tax-free allowance will be further increased as well.
• The amount of this increase will be announced shortly.
• In 2023, the tax-free allowance already went up from $12,198 to $17,352.

Q: What will change with regard to the customary wage for directors and major shareholders?

• From 2024, the customary wage for company owners will be linked to the tax-free allowance.
• In addition, clearer rules will be introduced in respect of permitted deviations from the calculation of the customary wage.

Q: What will change in the taxation (belastingen) of private and commercial vehicles?

• Private and commercial vehicles fall into different tax categories.
• Different definitions apply at present, which causes confusion and lack of clarity.
• The government has opted for one uniform term.
• From 2024, the import of pick-ups and vans will be taxed at the high rate of general expenditure tax.
• This measure will help create a level playing field, because entrepreneurs who also use their company vehicle for private purposes will have to pay the same rate as that applicable to private vehicles.

Q: From 2024, the government wants to introduce a minimum tax (minimumbelasting) for companies. Why?

• In this way, the Caribbean system will be in line with the Dutch model and the European directive applicable from 2024 on minimum taxation of internationally operating enterprises.
• The measure will apply only in very specific cases and will also prevent abuse and tax evasion.

Q: What is the purpose of the measure regarding the revenue tax (opbrengstbelasting) for holding companies (houdstervennootschap)?

• This measure is intended to discourage abuse.
• At present, holding companies can perform investment activities without any impediment.
• These companies will now have to meet stricter conditions in order to be eligible for a tax ruling, which means among other things that restrictions will be placed on the investment activities of these holding companies.
• Holding companies already in possession of a ‘95% order’ will also have to meet these stricter conditions.

Q: To whom does the notification requirement for vastgoedbelasting apply?

• This requirement applies to new owners or possessors of homes or business premises.
• They must report the purchase themselves, and may incur a fine if they fail to do so.

Q: What will change in the scheme for small enterprises?

• From 2024, the government wants to raise the annual turnover limit for general expenditure tax in respect of small enterprises.
• The turnover limit will be $30,000.
• This means that small enterprises will not be required to pay general expenditure tax.