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SurinameTax Obligations Detailed

Discover employer and employee tax responsibilities in Suriname

Employer tax responsibilities

In Suriname, employers navigate various tax obligations related to wage tax, social security contributions, and corporate income tax.

Wage Tax

  • Tax-Free Allowance: The first SRD 108,000 of annual income is tax-exempt.

  • Tax Rates (Normal):

    • Up to SRD 42,000 annually (SRD 3,500 monthly): 8%
    • SRD 42,001 - SRD 84,000 annually (SRD 3,501 - SRD 7,000 monthly): 18%
    • SRD 84,001 - SRD 126,000 annually (SRD 7,001 - SRD 10,500 monthly): 28%
    • Above SRD 126,000 annually (SRD 10,500 monthly): 38%
  • Tax Rates (Lump-Sum Payments): Upon request to the tax authorities:

    • Up to SRD 42,000: 5%
    • SRD 42,001 - SRD 84,000: 15%
    • SRD 84,001 - SRD 126,000: 25%
    • Above SRD 126,000: 35%
  • Tax Rates (Overtime): Upon request to the tax authorities:

    • Up to SRD 500 monthly: 5%
    • SRD 501 - SRD 1,100 monthly: 15%
    • Above SRD 1,100 monthly: 25%
  • Filing and Payment: Wage tax returns and payments are due by the seventh working day of the month following the pay period.

Social Security

  • Employee Contribution: 2.5% of monthly covered earnings for employees under 60, increasing by 0.25% annually until reaching 14% in 2065. No contribution for employees 60 or older.
  • As of February 5, 2025, the employer's social security contribution rate information for Suriname is unavailable. However, it's important to note that rates for social security can differ based on factors like the employee's age, earnings, and redundancy status. Employers should ensure they stay updated with the latest official rates and regulations.

Corporate Income Tax

  • Rate: 36%
  • Provisional Return: Due April 15th of the current year (or within two and a half months after the fiscal year's start). The taxable income declared must be at least equal to that of the most recent final return. The tax due is typically paid in four equal installments on April 15th, July 15th, October 15th, and December 31st.

Other Employer Obligations

  • Vacation Allowance: Mandatory.
  • Bonus: Not mandatory.
  • Severance Pay: Not legally required but common practice. May qualify for favorable tax treatment upon request.
  • Record Keeping: Detailed records of terminations, including reasons, severance payments, and agreements, are necessary.

Income Tax Returns & Online Filing

Starting January 1, 2025, income tax returns must be filed online. Registration is required via the Tax Authority's online portal. Preliminary income tax returns for 2025 are also due in April 2025 and should be filed online. Businesses with different fiscal years or lower taxable income may have different filing requirements.

This information is current as of February 5, 2025, and might be subject to change. Employers should consult with local tax advisors or legal experts for the latest updates and specific guidance.

Employee tax deductions

Employee tax deductions in Suriname are based on a progressive system, meaning higher earners pay a larger percentage of their income in taxes. Several deductions and allowances can reduce the overall tax burden.

Income Tax

  • Tax-Free Allowance: The tax-free allowance is SRD 108,000 annually or SRD 9,000 monthly as of 2025. This amount is deducted from your gross income before tax calculations.
  • Tax Brackets: While sources suggest upcoming changes to the tax brackets as of January 2024 (with some sources pointing to 2025), it is expected that it will be implemented in 2025, official, updated tax rates were not accessible. As of the last updates, these changes include updated brackets and percentages. Further details will be available upon the release of the official decree. Note that this information is time-dependent and subject to change pending potential government decrees and updates, it is recommended to confirm the most current rates with official sources.
  • Deductions: A standard deduction for work-related expenses is available, amounting to SRD 4,800 per year or SRD 400 per month.

Social Security Contributions

  • Employee Contribution: Employees contribute 2.5% of their monthly covered earnings if they are under 60. This percentage increases incrementally (0.25% yearly) to reach 14% in 2065. Individuals 60 or older do not contribute.

Other Deductions

  • Vacation Allowance: While not a deduction, vacation allowance is tax-exempt up to SRD 10,016.

Employer Obligations

Surinamese employers are responsible for withholding income tax and social security contributions from employee salaries. They also contribute to old-age insurance at 4% of the employee's employment income. Employers are also responsible for managing other statutory obligations like providing adequate insurance against illness.

Tax Year and Filing

The fiscal year in Suriname aligns with the calendar year (January 1st to December 31st). Employers are responsible for year-end tax reporting, including wage tax returns, and must submit these to the tax administration. Provisional income tax returns for 2025, with an estimated taxable result equal to or greater than the previous year's final return, are expected. If a lower taxable result is anticipated, a substantiated request must be submitted by February 15th, 2025. As this is a time-sensitive deadline, please note the date of this response is February 5th, 2025.

Additional Considerations for Foreign Workers

  • Non-resident employees are taxed on income earned in Suriname without the 183-day exemption often applied elsewhere.
  • Employers must withhold wage tax for both resident and non-resident employees.
  • Non-resident employees should fulfill their tax obligations by filing a personal income tax return if they haven't had taxes withheld by their employer.

This information is intended as a general overview as of February 5th, 2025, and should not substitute professional tax advice. For the most current and detailed information, consult with a qualified tax advisor in Suriname or refer to official government publications.

VAT

In Suriname, the Value Added Tax (VAT) replaced the Turnover Tax on January 1, 2023.

VAT Rates

  • Standard Rate: 10% (applicable to most goods and services).
  • Reduced Rate: 0% (for specific essential goods and services listed in Annex 1 of the VAT Act).
  • Increased Rate: 25% (for luxury goods listed in Annex 3 of the VAT Act).
  • Exempt: Certain goods and services listed in Annex 2 of the VAT Act are entirely exempt from VAT.

Registration Threshold

Businesses whose annual turnover exceeds SRD 1,000,000 must register for VAT. Those with turnovers below this threshold but above SRD 500,000 may register voluntarily. Regardless of turnover, businesses engaging in import or export activities must register for VAT. If you are selling digital products to consumers in Suriname you must register once sales exceed SRD 500,000. Note that these figures might change and it is good practice to confirm them with official sources.

Registration Process

Registration is done online through the tax authority's portal. Businesses will need an active email address, an extract from the Chamber of Commerce (or a relevant contract/permit), identification, and bank details (if available).

After submission, the tax office reviews the information and provides login details for activation within 72 hours. A registration certificate can be downloaded upon approval.

Filing Requirements

VAT returns are submitted monthly. The tax due for a given return period must be paid by the 16th day of the following month. As of 2025 (and possibly even earlier, check official sources), income tax returns are also filed through the online portal.

VAT Invoices

VAT invoices must include specific information to comply with Surinamese regulations. Ensure your invoices include:

  • Your business name and address
  • Your VAT registration number
  • Invoice date and sequence number
  • Buyer's name and address (and VAT registration number if applicable)
  • VAT amount and rate applied to each item
  • Total amount due after VAT
  • Currency used

Other Indirect Taxes

Besides VAT, other indirect taxes in Suriname include excise taxes and import taxes. Details of these taxes should be obtained from official Surinamese tax resources.

Exchange Rate Rules

Suriname uses a fixed exchange rate against the US dollar, which is published daily by the Central Bank of Suriname along with other exchange rates. For updated information always refer to the latest official publications.

This information is current as of February 5, 2025, and is subject to change. Always confirm the latest regulations with the Surinamese tax authorities or a qualified tax advisor.

Tax incentives

Suriname offers a range of tax incentives to attract investment and stimulate economic growth.

Corporate Income Tax Incentives

  • Tax Holidays: Qualifying new businesses in key sectors can benefit from a nine-year tax holiday. This can be extended to ten years for investments exceeding US$13 million. This incentive reduces the corporate income tax burden during the holiday period.
  • Accelerated Depreciation: Businesses can depreciate assets at an accelerated rate, reducing their taxable income during the depreciation period. This offers a faster return on investment through reduced tax liabilities.
  • Tax Consolidation: Parent companies can consolidate their tax liabilities with those of fully owned subsidiaries, reducing the overall tax burden for the group. This allows for offsetting losses of subsidiaries against profits of the parent company.
  • Carry Forward Losses: Tax losses can be carried forward for up to seven years. Losses incurred during the first three years of operation can be carried forward indefinitely, providing longer-term tax benefits.

Other Tax Incentives

  • Import Duty Exemptions: Full or partial exemptions from import duties are available for capital goods, raw materials, and other goods used in manufacturing, especially if comparable products are not locally produced. The exemption can be up to 75% for business assets with a minimum value of US$10,000. Full exemption is applicable for raw materials, auxiliary materials, semi-finished products, and packaging in the production sector.
  • Specific Sector Incentives: Additional incentives exist for specific sectors, such as mining, tourism, and oil and gas. These may include exemptions from certain taxes and duties. The oil sector enjoys duty-free import of equipment and tax-free hydrocarbon exports.
  • Investment Incentives: The Investment Act provides incentives for businesses investing in operating assets, including arbitrary depreciation for investments over US$5,000. A request must be submitted within three months of the investment.
  • VAT Regime: Suriname has a Value Added Tax (VAT) system with a standard rate of 10% and a luxury rate of 25%. Many essential goods and services are zero-rated. Small businesses with turnover below SRD 1 million are exempt. Individual taxpayers may be eligible for tax credits.

General Tax Information

  • Wage Tax: Employers are responsible for withholding wage tax from employee salaries and remitting it to the tax authorities. No additional personal income tax is levied if employment is the sole source of income. A tax-free amount and deductible professional expenses reduce the taxable base for wage tax.
  • Tax Treaties: Suriname has tax treaties with several countries to avoid double taxation. A recent treaty with Curaçao was signed in July 2024.

Note: The information provided is current as of February 5, 2025, and may be subject to change. It's essential to consult with a tax advisor for the most up-to-date and specific information regarding tax incentives in Suriname.

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