Employer Tax Contributions

Tax Type	Rate	Base
Social Security (Overall)	10.3%	Gross wage costs
Healthcare Insurance (ZV)	9.3%	Gross wage costs
Accident Insurance (OV)	0.7%	Gross wage costs
Cessantia (Severance Pay)	0.1%	Gross wage costs

Filing & Compliance

• Monthly wage declarations (loonopgaven) and remittances are typically due by the 15th day of the month following the reporting month.
• Annual wage summaries are usually due early in the following year (e.g., by February or March).
• Employers must maintain accurate payroll records.

In 2025, Bonaire, St. Eustatius, and Saba will implement several tax changes impacting residents and businesses.

Income Tax (Inkomstenbelasting)

The tax-free allowance is linked to St. Eustatius's minimum wage, exempting minimum wage earners from income tax. The second tax bracket threshold is lowered to $51,250, taxed at 35.4%, while the first bracket, up to this threshold, is taxed at 30.4%. Exemptions for severance pay and pension entitlements within salaries are removed. The tax-free allowance for 2025 is set at $20,424, but this might be adjusted if the minimum wage changes. The definition of "main residence" is clarified to mean "primarily available to the taxpayer," impacting interest deductions on multiple properties.

Property Tax (Vastgoedbelasting)

The property investment scheme, which provided exemptions, is reduced from 10 to 5 years. The property tax rate for hotels increases from 10% to 11% based on a fictional income of 4% of the property value.

Revenue Tax (Opbrengstbelasting)

The revenue tax rate on profit distributions and income from substantial interest increases from 5% to 7.5%. The revenue tax due upon fiscal emigration of a corporation is no longer deductible from personal income tax.

Wage Tax (Loonbelasting)

Several changes also occur to the wage tax or loonbelasting. The low contribution rate for the General Unemployment Fund (Awf) is 2.74% for employees with permanent contracts, while the high rate is 7.74% for other contracts. The employer's levy under the Healthcare Insurance Act (Zvw) is 6.51% on wages up to $75,864. Insured persons with other employment income pay a 5.26% income-related contribution on income up to $75,864 for healthcare insurance. There is also guidance surrounding cost allowances: certain allowances like phone, study, travel, and home workspace costs can be tax-free under specific conditions. There are also particular guidelines surrounding the valuation of benefits in kind such as company cars, housing, and meals.

It is crucial for employers and employees in Bonaire, St. Eustatius, and Saba to be aware of these changes for the 2025 tax year. More detailed information can be found on the Belastingdienst Caribisch Nederland website. As of today, February 5, 2025, this information is believed to be accurate but might be subject to adjustments or further clarifications. For personalized advice, consulting a tax advisor is highly recommended.