Tax free allowance increased to USD 17,352 from the 1st of January 2023
The tax free allowance in the Caribbean Netherlands for 2023 was set at USD 17,352. This is an increase of USD 5,154 compared to the personal tax allowance of 2022, which amounts to USD 12,198.
The tax free allowance can be taken into account upon the calculation of the inkomstenbelasting, the contributions for the AOV, AWW, and the employee’s share of the healthcare insurance. The tax free allowance implies that a part of the taxable income is not taxed.
State Secretary Marnix van Rij (Fiscaliteit and Belastingdienst):
“With the increase of the tax free allowance by well over 40% to USD 17,352 we assist people with their income and in their social and economic security. Moreover, we provide clarity by aligning the tax free allowance with the highest minimum wages in the Caribbean Netherlands. As the Cabinet, we have recently noticed a call for attention to this at various locations. We also understand this. Hence, I am glad that we can now specifically assist people and can offer clarity to everyone.”
Tax does not need to be paid on income up to USD 17,352.
Tax at 30.4% must be paid on income exceeding the amount of USD 17,352, and 35.4% on income exceeding the amount of USD 281,921.