Employers in Suriname have several tax responsibilities. These include withholding pre-levy income tax, also known as 'wage tax', from employee salaries. The tax rates are progressive, ranging from 0% to 38%. Employers are required to file monthly wage tax returns and make payments by the seventh business day of the month following the reporting period.

Social Security Contributions

Employers are also responsible for withholding and contributing towards social security, which includes old-age pensions and healthcare. For Old-Age Insurance (AOV), employers contribute 10.5% of the employee's gross salary. For Health Insurance (BZV), employers contribute 4.65% of the employee's gross salary. These contributions and all related documentation must be submitted on a monthly basis. The specific deadlines may vary depending on the size of the company.

Corporate Income Tax

Companies operating in Suriname are subject to corporate income tax on their profits. The corporate income tax rate follows a progressive structure, ranging from 36% to 38%. Companies must file their annual corporate income tax returns and make payments within four months after the end of their fiscal year.

Other Potential Employer Taxes

Employers may also be subject to other taxes such as Property Tax, which is imposed on the ownership of real estate, and Transfer Tax, which is levied on the transfer of real estate and certain other assets.

Resident taxpayers are entitled to a basic personal tax credit, which as of May 2020, stands at SRD 9,000 annually or SRD 750 per month. Employees can also claim a fixed deduction of 4% of their gross salary (with a maximum of SRD 1,200 annually) to cover general employment expenses.

Work-Related Expenses

Employees contribute to Old-Age Insurance (AOV) based on their age. The percentage increases as employees get older until they reach the maximum of 14% by 2065. Employees also contribute 4.35% of their gross salary towards health insurance.

Social Security Deductions

There are other deductions available, but they come with specific eligibility criteria. These include medical expenses, which are deductible under certain conditions and if they surpass specific thresholds. Educational expenses may be deductible under certain circumstances.

Other Deductions

Support for relatives is deductible up to the second degree of familial relation if specified thresholds are met. Deductions are allowed for mortgage interest payments related to the taxpayer's primary dwelling, up to a maximum debt of SRD 125,000. Life insurance premiums are deductible up to 10% of the taxpayer's income if the premiums entitle them to annuity, pension, or other periodic allowance payments. Alimony payments are deductible if they exceed designated thresholds. Expenses for a disabled child are deductible up to SRD 8,000 under certain conditions.

In Suriname, the standard VAT rate is currently 10%. This applies to the majority of services supplied within the country. Certain services are zero-rated (exempt) from VAT. These exemptions generally include exports, basic necessities, healthcare, and education. A limited number of services categorized as luxury goods are subject to the increased VAT rate of 25%.

VAT Filing Procedures

Businesses with an annual turnover exceeding SRD 1 million must register for VAT with the Suriname Tax Administration (Belastingdienst Suriname). VAT returns are generally filed monthly. The deadline for filing and payment is by the seventh business day of the month following the tax reporting period. Businesses charge VAT on their sales (output VAT) and can claim a deduction for VAT paid on business-related purchases (input VAT).

Important Considerations

In certain situations, the reverse charge mechanism might apply, in which the recipient of the goods or services is responsible for accounting for the VAT. Services received from abroad might be subject to VAT under certain conditions.

Suriname offers a variety of tax incentives to attract foreign investment and stimulate specific sectors of the economy. These incentives include tax holidays, investment deductions, import duty exemptions, and turnover tax reduction.

Types of Tax Incentives

• Tax Holidays: New businesses operating in prioritized sectors may qualify for a partial or full exemption from corporate income tax for an initial period, typically 5-10 years.
• Investment Deductions: Businesses investing in specific industries or geographical areas, such as hinterland development, might be eligible for accelerated depreciation deductions on qualifying assets.
• Import Duty Exemptions: Certain sectors may be eligible for partial or full exemptions from import duties on machinery, equipment, and raw materials required for production.
• Turnover Tax Reduction: New businesses in priority sectors can receive a temporary reduction in the standard turnover tax rate.

Qualification Criteria

Eligibility criteria apply to each tax incentive program. Generally, qualifying businesses could be involved in export-oriented industries, manufacturing, tourism, agriculture, renewable energy, or hinterland development initiatives. Additional factors might include job creation, technology transfer, and environmental sustainability.

Application Process

The application process for tax incentives typically involves:

1. Submitting a detailed investment proposal to the Investment and Development Promotion Agency (IDCS) outlining your business plan, investment size, job creation projections, and desired tax benefits.
2. Meeting eligibility requirements as determined by the relevant authorities.
3. Securing necessary permits and licenses for your business operations.
4. Seeking approval from the Ministry of Finance or other relevant government bodies.

Please note that the specific application procedures, qualifying criteria, and available incentives can be subject to change.