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. Existing TECs are still awaiting transition legislation. However, it is clear that businesses must prepare for change.
With the TEC status abolished, the tax implications could be significant. Currently, TECs benefit from an extremely low effective tax rate. However, after December 31, 2024, dividend distributions from TECs to shareholders will likely face increased taxation. Uncertainty remains regarding transition rules, which are yet to be formally announced. This makes planning ahead even more critical.
At HaVen – Audit, Accounting & Consultancy, we strongly recommend that business owners review their corporate structure now rather than waiting for the final transition rules. Proactive planning can help mitigate potential tax burdens and ensure compliance with upcoming regulations.
There are alternative structures that can help optimize your tax position and protect your assets. One such alternative is the Stichting Particulier Fonds (SPF), a Private Fund Foundation that may offer tax advantages under the right circumstances. Other options include restructuring your holdings into regular Sint Maarten B.V.s with proper tax planning.
Each alternative has unique benefits and requirements, which is why a personalized approach is necessary.
We invite all business owners affected by the TEC abolition to schedule a consultation with our experts. We can help you:
While the TEC status seems to remain in place awaiting transitional legislation, waiting until the last minute could lead to unnecessary tax exposure. Take control of your business structure today by consulting with HaVen’s experienced tax advisors.
Contact us now to schedule your second opinion and ensure that your business is well-prepared for the upcoming changes.
Founder & Director
Erik van Engelen, RA
[email protected]
+1721 534 2833
Director
Taco Bruggink, RA RC
[email protected]
+31 6 12213162
We take pride in our dual focus.
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