The government of Sint Maarten is preparing to introduce a 10% dividend withholding tax, with a proposed effective date of January 1, 2026. While the legislation is still pending final approval, it is already in an advanced stage—and the potential impact for local and international investors is significant.
Led by Minister of Finance Marinka Gumbs, this proposal is part of a broader effort to strengthen public finances and bring Sint Maarten’s tax framework more in line with international standards. If approved, the new measure would introduce a dividend tax for the first time in Sint Maarten’s history.
Dividend tax is a withholding tax on profit distributions from a company to its shareholders. In practical terms, it means that part of the dividend you receive—10%, according to the current proposal—would be withheld and paid to the tax authorities before you receive your share.
Until now, companies in Sint Maarten have been able to distribute dividends without this additional tax burden. That’s about to change.
If the law passes, the new tax will apply to:
This may result in lower net returns and might require businesses to rethink their distribution strategies.
Even though the law isn’t in effect yet, now is the time to prepare. We recommend:
At HaVen Sint Maarten, we’re keeping a close eye on these developments and are ready to support you every step of the way. Whether you’re a business owner or investor, our team can provide forward-looking strategies and practical guidance.
📅 Need advice?
Let’s plan ahead together. Contact us to schedule a consultation and make sure you’re ready for what’s coming.
Founder & Director
Erik van Engelen, RA
vanengelen@havensxm.com
+1721 534 2833
The Central Bank of Curaçao and Sint Maarten (CBCS) has introduced new guidance on the Systematic AML/CFT/CFP Risk Assessment (SARA). This framework is part of the CBCS’ risk-based supervisory approach and aligns with international FATF recommendations for combating money laundering and terrorist financing.
Closing a company is more than simply stopping business activities. Even if a company is no longer operating, it remains a legal entity until it has been formally dissolved and properly deregistered with all relevant authorities.
The government of Sint Maarten is preparing to introduce a 10% dividend withholding tax, with a proposed effective date of January 1, 2026. While the legislation is still pending final approval, it is already in an advanced stage—and the potential impact for local and international investors is significant.
We take pride in our dual focus.
For years, tax reform has been a topic of discussion in Sint Maarten, but despite plans being on the table since 2015, real implementation has yet to take place. The delay in much-needed changes is harming the island’s economy and business climate.
For years, many business owners in Sint Maarten have utilized a Tax Exempt Company (TEC) as a holding structure for their operating companies. However, this widely used tax benefit is coming to an end. The previous government revoked the TEC status, and as of December 31, 2024, it is no longer possible to set up a TEC.
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Phone: +599 790 2833
Email: info@havensxm.com
