SINT MAARTEN (GREAT BAY) - Minister of Finance Marinka Gumbs has confirmed during the budget debate that a new 10% dividend withholding tax is on the way, marking a significant step toward strengthening Sint Maarten’s revenue base.
The national decree enacting the law was signed on December 18, 2024. While the legal framework has been established, formal publication and consolidation are still pending, which means the law is not yet in force.
Once implemented, the measure is expected to generate at least XCG 10 million annually. This projection is based on Bonaire’s similar tax regime, which yields approximately USD 7 million per year. Although the legislation is not reflected in the 2025 national budget, preparations for full enforcement are well underway.
“Although the tax is not active as yet, we’re laying all the groundwork now, from IT system upgrades to public awareness, so we can roll it out responsibly,” said Minister Gumbs. The dividend tax is simple in its design, requiring companies to withhold 10% on dividend distributions.
While the dividend tax existed during the Netherlands Antilles era, it was never implemented or applied in Sint Maarten. As such, this law does not need to go to Parliament and can be converted to Country status via national decree which was done in December 2024.
Unlike the Tourist Tax, which is a continuation and enhancement of an existing measure the Dividend Tax is a new initiative introduced under the current Minister Gumbs tenure. The target enforcement date is January 1, 2026, with formal inclusion in the 2026 national budget. The Ministry has assured that the implementation will be transparent, legally sound, and phased to give businesses and taxpayers adequate time and information to prepare.
“We are committed to reforming our tax system in a structured and fair way. This is just one of several steps we are taking to build a stronger, more resilient economy,” Minister Marinka Gumbs concluded. She further emphasized, “As I’ve consistently communicated, just because something isn’t reflected in the current budget doesn’t mean we’re not working on it. Our responsibility is to ensure any revenue measure included in the budget is realistic and can be executed.”
Further updates will be shared as implementation progresses.
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