PHILIPSBURG:--- Member of Parliament Ardwell Irion has submitted a bold initiative law that aims to reduce the burden on small businesses, promote formal employment, and encourage companies to invest in the training and development of their workers.
The proposed law introduces a tiered profit tax system for the first time in Sint Maarten’s history. Businesses earning up to ANG 600,000 per year will see their profit tax drop from 34.5 percent to 15 percent, while all other businesses will be taxed at a lower, simplified rate of 20 percent.
“This is long overdue,” said Irion. “A small beauty salon in Dutch Quarter should not be taxed the same way as a high-end resort in Simpson Bay. This reform gives our smaller entrepreneurs the chance to grow, reinvest, and hire more people.”
The initiative law also creates a 150 percent deduction on employee wages, meaning that companies will now benefit more by employing people formally and reporting those wages properly through SZV. “Too many workers in this country are still being paid under the table, with no security and no future,” Irion stated. “This new deduction rewards employers who do things right.”
To address the need for a more skilled workforce, the law also introduces a 150 percent deduction on training costs. Companies that send their employees to accredited training courses in fields like hospitality, construction, medical, or AI, will be allowed to write off 150 percent of those costs.
“We have a serious skills gap in this country,” Irion continued. “This law gives businesses a real reason to invest in their people, because trained workers mean stronger businesses and stronger households.”
The initiative law also removes, caps, or limits several deductible categories. These changes are designed to simplify compliance for the tax administration and contribute to a more fiscally balanced and transparent framework.
The law is expected to take effect on January 1st, 2026, but only if the coalition sees the urgency, especially in light of the lack of tax reform proposals and execution from the current government, and ensures that the proposal is prioritized on the legislative agenda and approved before November 2025.
“Even from the opposition benches, I will continue to hold the government accountable while also putting forward solutions and the necessary legislation to move our country forward,” Irion concluded. “My approach to legislation going forward is simple. It must be fit for purpose. This is a concrete step toward supporting business, creating jobs, and strengthening the foundation of Sint Maarten’s economy.”
Click here to read the reform amendment.
