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Suriname

Country Name: Suriname
Currency: Surinamese Dollar (SRD)
Primary Tax Authority: Belastingdienst Suriname – Suriname Tax Office
Key Legislation:

  • Income Tax Act
  • Value Added Tax Act
  • Corporate Tax Act

Fiscal Authority Allocation

Centralized Fiscal System:
Suriname operates a centralized tax system, with the Suriname Tax Office responsible for administering and collecting taxes, including corporate income tax (CIT), personal income tax (PIT), and value-added tax (VAT). Local governments have limited authority to collect property taxes and municipal fees, but most tax revenue is collected centrally.

Corporate Income Tax (CIT)

Standard Rate: 36%
Suriname levies a corporate income tax (CIT) rate of 36% on net taxable income for resident companies. Non-resident companies are taxed on income sourced from Suriname.

Corporate Forms and Taxation:

  1. Limited Liability Company (Naamloze Vennootschap – NV): The most common corporate form in Suriname, subject to the standard 36% CIT rate.
  2. Limited Liability Partnership (Vennootschap onder Firma – VoF): A partnership subject to the same CIT rate as corporations, with individual partners also taxed on their share of profits.
  3. Branches of Foreign Companies: Subject to a 36% CIT rate on Suriname-sourced income.

Exemptions and Incentives:

  • Tax Holidays: Certain sectors, such as agriculture and tourism, may qualify for tax holidays, reducing or eliminating CIT for a specified period.
  • Investment Incentives: Suriname offers tax incentives for investments in infrastructure, agriculture, and renewable energy, including accelerated depreciation and deductions.

Goods and Services Tax (GST) / Value-Added Tax (VAT)

Standard Rate: 10%
Suriname applies a VAT rate of 10% on most goods and services. VAT is levied on sales, services, and imports. There is a reduced rate of 8% on some goods, such as pharmaceuticals and basic foodstuffs.

Exemptions:
Exports, education, healthcare services, and certain financial services are exempt from VAT. Exports are zero-rated, allowing businesses to recover VAT on input costs related to their export activities.

Personal Income Tax (PIT)

Progressive Rates:
Suriname applies progressive personal income tax rates ranging from 0% to 38%. The rates are as follows:

  • Up to SRD 25,000: 0%
  • SRD 25,001 – SRD 40,000: 20%
  • SRD 40,001 – SRD 60,000: 30%
  • Above SRD 60,000: 38%

Dividends:
Dividends paid to both residents and non-residents are subject to a 25% withholding tax.

Additional Mandatory Contributions

Social Security Contributions:
Both employers and employees must contribute to Suriname’s social security system, which provides pensions, healthcare, and unemployment benefits.

  • Employer Contribution: Approximately 14% of gross salary (includes healthcare and pensions).
  • Employee Contribution: 4% of gross salary.

Withholding Taxes

  • Dividends: 25%
  • Interest: 25%
  • Royalties: 25%
    Withholding tax rates may be reduced under Suriname’s double taxation agreements (DTAs).

Transfer Pricing Rules

Suriname follows international transfer pricing guidelines. Related-party transactions must comply with the arm’s-length principle, and companies must maintain documentation to support their transfer pricing policies.

Special Tax Regimes

  • Agricultural Incentives: Tax credits and exemptions are available for investments in agricultural projects, including exemptions on certain import duties for agricultural machinery.
  • Mining and Natural Resources: Suriname offers specific tax regimes for companies in the mining, oil, and natural resources sectors, including special royalty rates and deductions for exploration and development costs.

Other Taxes

  • Real Estate Tax: Property taxes are levied by local governments and are calculated as a percentage of the cadastral value of the property, typically ranging from 0.1% to 1.5%.
  • Capital Gains Tax: Capital gains are taxed as ordinary income, subject to the CIT or PIT rates. However, certain exemptions apply for capital gains from long-term investments.
  • Excise Duties: Excise taxes apply to specific goods, such as alcohol, tobacco, and fuel.

Double Taxation Agreements (DTAs)

Suriname has signed a few double taxation agreements with countries like the Netherlands and Indonesia. These agreements help reduce withholding taxes on dividends, interest, and royalties and provide tax relief for cross-border income.

Local Taxes

Local governments in Suriname are responsible for collecting property taxes and certain municipal fees. However, the majority of tax collection, including CIT and VAT, is managed by the Suriname Tax Office.

Compliance and Reporting

Annual Filing:
Corporate tax returns must be filed by April 1st of the following tax year. Personal income tax returns are due by the same date. The tax year follows the calendar year in Suriname.

Penalties for Late Filing:
Penalties for non-compliance or late filing include fines and interest charges. The interest rate on unpaid taxes is generally set at 1.5% per month, with additional penalties for significant delays.

Recent Developments

Tax Reforms:
Suriname has been undergoing tax reforms aimed at modernizing its tax system and increasing tax compliance. These reforms include the introduction of VAT to replace previous turnover taxes and measures to expand the tax base by formalizing the informal sector.

Environmental Taxes:
Suriname has introduced environmental taxes on certain industries, including mining and oil extraction, as part of its efforts to promote sustainability and reduce the environmental impact of industrial activities.

Digital Economy:
The Suriname government is exploring ways to regulate and tax digital platforms and online services, with plans to introduce taxes on foreign digital service providers operating within the country.

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