PHILIPSBURG:--- Member of Parliament Egbert J. Doran is expressing serious concern about the government’s plan to introduce a ten percent dividend withholding tax beginning January 1, 2026. According to MP Doran, the decision is both premature and disconnected from the current realities facing Sint Maarten’s economy and people. He points to the lingering effects of Hurricane Irma, the socioeconomic shocks from COVID-19, and the absence of any real tax relief for the population as clear reasons why now is the worst possible time to introduce an additional tax burden.
MP Doran noted that this new measure, announced by the Minister of Finance as part of the upcoming 2026 national budget, appears to be moving forward without any meaningful public consultation or formal notification to the businesses and shareholders who will be directly impacted. He emphasized that this type of decision, which impacts local entrepreneurship, family-owned companies, and already struggling small businesses, should not be rushed into law without thorough dialogue and due process.
“What is most troubling,” Doran added, “is that the government is attempting to increase revenue without offering the people of Sint Maarten any form of relief in return.” The country has seen no comprehensive tax strategy, no plan to reduce the cost of living, no reduction in fuel taxes, and no meaningful incentives for investment or economic growth. Yet, a ten percent withholding tax on dividends has suddenly taken priority. For many business owners, this means that profits already taxed at a rate of 34.5 percent will now face an additional levy simply for being distributed, creating a combined tax burden of over 43 percent, with no exemptions or reinvestment incentives in sight.
Doran further emphasized that the way this tax is being introduced, through vague public statements without any published framework, explanatory notes, or stakeholder outreach, raises major governance concerns. It gives the impression of rushed decision-making rather than a well-coordinated policy aimed at sustainable growth. He questioned how the government expects businesses to prepare for such a change with only six months left in the year and no guidance provided.
“It is becoming increasingly clear,” Doran stated, “that the government does not have a coherent fiscal or economic relief strategy.” The people of Sint Maarten are being asked to absorb more financial pressure while receiving nothing in return. There is no investment plan for job creation, no easing of administrative burdens on small businesses, and no clarity on how this tax aligns with broader reform goals. The dividend withholding tax appears to be just another move to extract revenue from the same overburdened base that continues to carry the economy through crisis after crisis.
MP Doran stated that he will be seeking further clarity and direct answers from the Minister of Finance during next week’s public budget debate.