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Strengthening tax compliance and ensuring fairness through reform in St. Maarten.

PHILIPSBURG: --- Tax reforms are critical for any country striving for financial stability and growth. For St Maarten, the implementation of focused measures like the dividend withholding tax represents a pivotal step toward a sustainable fiscal future. By ensuring fairness, improving compliance, and securing government revenue, these measures not only address long-standing issues but also set the stage for a more equitable and efficient tax system.

But why is this reform necessary, and what are its broader implications? Below, we examine how mechanisms such as dividend withholding tax benefit the country, the challenges they aim to address, and the steps required to establish a more robust and sustainable fiscal framework.

The Case for Tax Reform in Sint Maarten

For years, St Maarten has relied heavily on local taxpayers—individual wage earners and businesses—for government revenue. Taxes like wage tax and turnover tax are automatically deducted and paid regularly, ensuring government liquidity. However, other forms of tax collection, like dividend tax, present significant compliance challenges, particularly when involving non-resident shareholders.

Currently, Sint Maarten’s tax-to-GDP ratio is approximately 16%, lagging behind neighboring territories like Aruba (20%) and Curaçao (26%). The international average in the Caribbean region is between 22% and 30%, indicating room for improvement. Increasing this ratio responsibly is crucial to meeting future financial obligations, improving public services, and providing relief by eventually reducing other taxes, such as profit tax and wage tax.

The dividend withholding tax is a reform designed not to introduce additional taxation but to enhance compliance with existing laws. By withholding a portion of taxes at the source, the government can secure revenue in real-time, addressing gaps in compliance and contributing to a more stable fiscal future.

How the Dividend Withholding Tax Works

Dividends—profits distributed by a company to its shareholders—are already subject to taxation under Sint Maarten’s income tax laws. The existing dividend tax is set at 18.75%. However, in many cases, particularly with non-resident shareholders, these taxes often go uncollected due to legal and logistical barriers.

The dividend withholding tax introduces a straightforward mechanism to address this issue. Under the new measure, companies will withhold 10% of the dividend at the point of payment, immediately remitting it to the government. The remaining 8.75% is collected when shareholders file their annual income tax returns. For local residents, existing enforcement tools like assessments and liens help ensure compliance, but for non-residents, this upfront withholding is crucial to secure at least a portion of the tax due.

This mechanism is similar to how wage tax is handled; employers deduct tax directly from employees’ salaries, ensuring compliance and reducing the administrative burden of collection. Implementing the same principle for dividends helps Sint Maarten address compliance inequities and improve overall tax collection.

Addressing the Challenge of Non-Resident Shareholders

Non-resident shareholders represent a specific challenge for tax enforcement. Unlike residents, they often operate outside the reach of Sint Maarten’s tax authorities. When dividends are paid out and taxes are omitted, there’s little recourse to recover the owed amount.

This creates an imbalance where local taxpayers shoulder a disproportionate share of the financial burden, as their taxes are collected regularly and on time, while others may evade their obligations entirely. The dividend withholding tax corrects this imbalance by ensuring that contributions are made upfront, regardless of where a shareholder resides.

For example, consider a company that pays NAf 100,000 in dividends. Under the new system, NAf 10,000 would immediately go to the government through withholding. This proactive approach not only secures revenue but also enhances fairness, as all shareholders—both local and foreign—contribute to the country’s fiscal health.

Building Toward a Sustainable Fiscal Future

Introducing the dividend withholding tax is just one piece of a larger puzzle aimed at creating a more sustainable and equitable fiscal framework for Sint Maarten. The ultimate goal is to reduce reliance on burdensome taxes, such as profit tax and wage tax, which have long been a pain point for businesses and individuals alike.

Gradual Tax Reduction

Reducing profit and wage taxes isn’t just a matter of fairness—it also promotes economic growth. Lower tax rates encourage business investment, create jobs, and strengthen the overall economy. However, these reductions must be implemented carefully, ensuring that lost revenue from one area is offset by gains elsewhere.

The dividend withholding tax serves as a stepping stone in this process. By improving compliance and broadening the tax base, the government can secure the revenue needed to lower other taxes over time responsibly. This balances the immediate need for funding with the long-term vision of a more competitive and business-friendly tax environment.

Compliance and Enforcement

To fully realize the benefits of tax reforms, stronger compliance and enforcement mechanisms are essential. The withholding system is a step in that direction, simplifying the tax collection process and reducing reliance on shareholder honesty.

Additionally, measures like requiring companies to submit annual financial statements provide a layer of accountability. These statements help the tax office verify whether dividends were paid and whether the appropriate taxes were withheld.

For Sint Maarten, adopting modern IT systems to support these initiatives is also vital. Integrating a dividend tax module into the current system will streamline assessments and improve overall efficiency, ensuring that tax reforms are on track for success.

Transparency and Public Engagement

Reforming a tax system isn’t just about changing laws—it’s about building trust and understanding with the public. Open communication and transparency are essential for gaining buy-in from taxpayers and minimizing resistance to new measures.

The introduction of the dividend withholding tax, for example, has sparked questions and, in some cases, misinformation. By clearly explaining how the system works and why it’s necessary, the government can foster an environment of collaboration, where both policymakers and citizens work toward shared goals of fairness and sustainability.

Why Fairness Matters

At its core, the dividend withholding tax is about fairness. Every resident and stakeholder in Sint Maarten benefits from public services, infrastructure, and a stable economy. It’s only right that everyone contributes their fair share to maintain and improve these resources.

Under the current system, wage earners are subject to monthly tax withholdings that range from 12.5% to 47.5%. This ensures a steady flow of revenue for the government but places a significant financial burden on working citizens. Meanwhile, shareholders—many of whom are non-residents—often escape paying taxes on their income.

By implementing a withholding system for dividends, Sint Maarten levels the playing field, ensuring that all contributors are held to the same standard. This not only improves fiscal stability but also reinforces the principle that everyone has a responsibility to support the communities they benefit from.

Closing Thoughts

Tax reforms like the dividend withholding tax represent a necessary shift in how Sint Maarten approaches compliance, fairness, and fiscal sustainability. By addressing long-standing inequities and improving the efficiency of tax collection, the country sets the stage for a more balanced and prosperous future.

However, reforms cannot stop here. Achieving a truly robust fiscal system requires ongoing commitment—not just from policymakers but also from the businesses, residents, and stakeholders who call Sint Maarten home.

Through transparency, incremental changes, and a shared vision for the future, Sint Maarten can turn its tax system into a foundation for economic growth, social equity, and long-term stability. The dividend withholding tax is the beginning of that journey, and with continued focus, the possibilities are endless.


VROMI Completes Emergency Landslide Stabilization In Ebenezer.

ebenezer23062025PHILIPSBURG:---  The Ministry of Public Housing, Spatial Planning, Environment, and Infrastructure (VROMI) announces the successful completion of emergency landslide stabilization works in Ebenezer Road, a key milestone in improving hillside safety ahead of the peak 2025 hurricane season.

The stabilization intervention addressed a critical landslide threat that emerged following significant soil movement in mid-2024. The situation posed an immediate danger to nearby homes, public infrastructure, and stormwater channels in the area, with blocked drainage posing a heightened risk of flooding to residents of Ebenezer.

This emergency effort follows years of community complaints and safety concerns dating back to 2010, regarding the way the hillside was being excavated. Between 2020 and 2022, the residents of Ebenezer submitted several letters to the Ministry of VROMI about the eroding hill face and the impact of falling soil. The tropical storms in early August 2024 exacerbated the state of erosion, resulting in the collapse of a septic tank and cistern onto properties below, which caused further drain blockage and threatened the complete collapse of the hill face. The situation in the area was worsened by the rains on Saint Martin Day in November 2024, which resulted in severe island-wide flooding.

The Ministry, under the leadership of Minister Patrice Gumbs, finalized the halted three-year tender process for trench cleaning, issuing contracts for regular maintenance in mid-August. To support the operationalization of these contracts and to address the complaints and safety concerns of the residents, the Ministry identified the repairs of the trench and the stabilization of the eroded cliff face as critical. Assessments began at the end of August 2024, were completed in February 2025, and work on the hill face began on March 10th, 2025.

“This project demonstrates the importance of civil works permits, responsible property development, and sound spatial planning,” said Minister Gumbs. Since its reintroduction in 2021, civil works permits have been irregularly applied. The Ministry began drafting a procedural manual in late 2024 to make clear when and how to apply civil works permits. The Ministry is busy with preparations for external stakeholder review and subsequent implementation.

Key project highlights:

  • Emergency works included shotcrete nailed wall construction, slope anchoring, and the clearing and restoration of the public drainage trench.
  • The solution, with proper maintenance, has a significant lifespan and allows for natural revegetation (greening) of the hill face.
  • The stabilization was completed in just under three months, ahead of peak storm activity.
  • The project was executed by AcrobatX, one of the few specialized geotechnical contractors operating in our subregion..
  • This intervention underscores the government's proactive approach to climate adaptation and infrastructure resilience.
  • The residents of the area are now safer and better protected against erosion, landslides, and flash flooding.

This intervention was prioritized over other areas, due to the urgency highlighted by last year’s tropical storms and erosion-induced structural collapses that were a risk to not only homes but lives as well. Further along the hill face, a secondary intervention is planned, which, once completed, will involve fixing the Ebenezer trench. This trench drains water from the hills of South Reward through all of Dutch Cul-de Sac and down to the Philipburg basin. One resident offered the following quote: “In the 15 years I’ve lived here, I’ve never seen the total length of this trench maintained and cleaned. This is big step towards this”

The company that took on the task of remedying the catastrophe, AcrobatX, listed some of the following reasons as the causes of the landslide:

  • Attempting to enlarge the properties using backfill without any proper reinforcement (since granodiorite (a type of rock in parts of the area) is very easy to dig and changes to the texture of sand under weight)
  • Subsurface water circulation is due to the lack of proper drainage built into the retaining wall. This increased the pressure, initiating the landslides.

Julien Ripert, the CEO of ACROBAT X (special works) & Rocks & Risks (geotechnical study office) stated that “I am glad to see that following my presentation to the Members of Parliament in 2022, there is now a strong will to make Sint Maarten  better in the area of enhanced construction regulation and in this scope to manage better the geotechnical context of construction.”

The Ministry has submitted a request to include a dedicated landslide mitigation line in the national budget to support similar critical interventions moving forward. “We are committed to identifying and addressing other high-risk areas across the country, not just reactively, but through sustained, forward-thinking policies.” Minister Gumbs explained.

Residents are thanked for their continued cooperation and are encouraged to remain vigilant as the hurricane season progresses.

CBCS maintains monetary policy stance.

~As global uncertainties intensify~

Willemstad/Philipsburg – On June 19, 2025, the Centrale Bank van Curaçao en Sint Maarten (CBCS) decided to keep its monetary policy stance unchanged. As a result, the pledging rate will remain at 4.75% and the reserve requirement percentage at 18.50%. The most recent adjustment to these monetary policy instruments occurred in November 2024, when both figures were reduced by 0.50 percentage points, a move supported at the time by the monetary union’s solid foreign exchange position and adequate import coverage. While domestic economic and monetary indicators remain solid and broadly aligned with expectations, the global outlook has become increasingly fragile due to mounting downside risks. Heightened uncertainty in global trade and financial markets, rising geopolitical tensions, along with the U.S. Federal Reserve (Fed)’s continued pause in its policy rate cuts, were key factors in CBCS’s decision. Given the prevailing uncertainties, the CBCS is maintaining a cautious policy stance and will continue to closely monitor both domestic and international economic developments, adjusting its policy as necessary. The current account deficit of the balance of payments as a percentage of GDP is expected to narrow from 16.8% in 2024 to 15.0% in 2025 due mainly to an increase in net exports of goods and services driven by higher exports, complemented by a decline in imports. Exports growth is expected to be led mainly by increased foreign exchange receipts from tourism activities across the monetary union. Meanwhile, the projected decline in imports is mainly due to the anticipated impact of lower international oil prices on the oil import bill. In contrast, non-oil merchandise imports across the monetary union are projected to increase, driven by increased tourism spending and higher domestic demand. So far this year, gross official reserves have increased by Cg 203.5 million as of June 2, 2025. By the end of the year, reserves are expected to have risen by Cg 51.8 million, as external financing and capital transfers are expected to exceed the deficit on the current account of the balance of payments. In line with this development, the import coverage has also shown an upward trend. The average import coverage is projected to increase from 4.4 months in 2024 to 4.7 months in 2025, remaining well above the norm of 3 months. However, the external environment has deteriorated significantly in recent months and could affect key monetary indicators. In particular, the escalation of (retaliatory) trade measures and prolonged trade policy uncertainty have intensified global trade tensions and disrupted supply chain stability. In addition, the intensification of geopolitical tensions in Eastern Europe and the Middle East could further disrupt global supply chains and raise energy and other commodity prices. These developments pose significant risks to import-dependent economies, like Curaçao and Sint Maarten as rising import costs may put pressure on the balance of payments and, consequently, gross official reserves. Considering these developments, the CBCS has decided to maintain the pledging rate at 4.75%, remaining aligned with the Fed, which decided on June 18, 2025, to keep its policy rate unchanged at 4.50%. The decision by the Fed to pause monetary easing reflects the growing uncertainties arising from the deteriorating global environment, including rising trade and geopolitical tensions. In addition, the CBCS will keep the reserve requirement percentage unchanged at 18.50%. Moreover, it will continue to offer attractive rates on its weekly auctions of certificates of deposit (CDs) with the aim of holding more bank liquidity domestically to support the preservation of a solid foreign exchange position. Willemstad, June 20, 2025 CENTRALE BANK VAN CURAÇAO EN SINT MAARTEN

James Finies Continues to Urge the UN: Return Bonaire to the Protective List for Justice and Self-Determination.

finies20062025James Finies, leader of Pueblo Progresivo Uni, and Davika Bissessar Shaw, President of the Bonaire Human Rights Organization, recently participated in the High-Level Meeting “Justice for Africans and People of African Descent Through Reparations” at the United Nations Headquarters in New York.

Hosted by the United Nations Office of the Special Adviser on Africa (OSAA), the President of the UN General Assembly (PGA), and the African Union Permanent Observer Mission to the UN (AUPOM), the event featured the participation of UN Secretary-General António Guterres, UN General Assembly President Philemon Yang, and African Union Chairperson Mahmoud Ali Youssouf. It brought together global leaders to advance reparative justice and sustainable development for Africa and its Diaspora.

James Finies of Bonaire delivered a statement to the meeting alongside representatives of Member States.

Speech:

Repair of Human Dignity for People of African Descent in the Caribbean – The People Left Behind

Haiti sparked the journey toward repair of dignity and decolonization in the Americas in 1804. Over two centuries later, the people of Bonaire remain under unresolved colonial rule. Eighty years after the founding of the United Nations, we issue an urgent appeal: the people of Bonaire are facing cultural and ethnic erasure.

Bonaire, an island just 50 miles off the coast of Venezuela, was unilaterally integrated into an European colonial constitutional framework in 2010—against the will of its people and under unequal legal conditions. Since then, laws foreign to our values and identity have been imposed. One of the most troubling is the euthanasia law—a practice that violates our deep cultural respect for life.

Eighty percent of Bonairians are of African descent. For us euthanasia is not an act of compassion but a violation of life. Our people have consistently and publicly rejected this law, which clashes with our ethical, religious, and cultural beliefs. Yet, despite mass opposition, it was enforced without consent through colonial rule.

The consequences have been profound. Since its introduction, Bonaire’s death rate has doubled. Even more alarming is the demographic shift: our native population has declined from 80% in 2010 to around 30% today. For comparison, in Palestine—after decades of conflict—the decline is approximately 6%. On Bonaire, a decline of 50% in a single decade—without bombs or bullets, but through policies that ignore our humanity.

This struggle cannot be separated from the legacy of transatlantic slavery, colonialism, and extractive systems that devastated Africa and its diaspora. As Chimamanda Ngozi Adichie warns, ignoring history blinds us to the present. Our challenges today are rooted in centuries of exploitation and imposed rule. True justice demands reparatory frameworks that restore dignity and empower communities like ours to reclaim cultural, economic, and political control. Sustainable development is impossible without justice, inclusion, and self-determination.

We are now a minority on our ancestral land, facing the dire threat of cultural extinction. This is modern colonialism—quiet, systemic, and deeply destructive.

Our recommendation: We urge the international community to prioritize the recognition and decolonization of remaining territories like Bonaire as part of the global reparatory justice agenda.

All human beings are born free and equal in dignity and rights. So are we—the people of Bonaire.

We will not be silent. We call upon the world to stand with us in our struggle to justice, to repair and reclaim our right to life, right to dignity, and right to self-determination.

video UN WEB TV: https://www.youtube.com/watch?v=eZFlbrz064c

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