Tax Changes Bonaire, St.Eustatius and Saba as of 1st January 2025
As of the 1st of January 2025, a series of tax measures will come into effect on Bonaire, St. Eustatius, and Saba. With these changes, the government focuses on protecting low incomes and modernising the tax system. For example, the tax-free allowance will be linked to the minimum wage. The changes are part of the Tax Plan BES, which was approved by the Senate on the 17th of December.
The Tax Plan BES includes several important measures, which will bring more balance to the tax system on Bonaire, St. Eustatius, and Saba, where residents with a minimum income will be spared as much as possible.
Key Changes
One of the key measures is linking the tax-free allowance (BVS) to the legal minimum wage (WML). This will be based on the highest minimum wage, which applies in St. Eustatius. This linkage ensures that residents with a minimum income will not have to pay tax. The annual adjustment keeps the tax-free allowance in line with economic conditions.
Other measures in the Tax Plan BES will also take effect on the 1st of January 2025. For example, the entry point to the second bracket ‘inkomstenbelasting’ (income tax) will be lowered from USD 322,769 to USD 51,250. Additionally, ‘vastgoedbelasting’ (property tax) will be adjusted in two ways: the investment scheme will be shortened from ten to five years, and the rate for hotels will increase from 10% to 11%. Furthermore, the rates for ‘opbrengstbelating’ (revenue tax) and profit from substantial interest will rise from 5% to 7.5%. The exemption for severance payments and compensation received in the form of a pension entitlement, which is part of the salary, will also expire.
The government will also monitor the effects of the measures in the Tax Plan BES in 2025. If the measures result in income reductions below the social minimum, it will be examined whether and how these can be corrected.
Modernisation and simplification
In addition to income measures, the government will implement technical improvements, such as revising regulations around payroll administration and streamlining tax legislation. This will make the system more transparent and better aligned with practical use. A complete overview of all changes can be found here https://www.rijksoverheid.nl.