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As we approach the end of 2023, it’s time to prepare for what lies ahead of us. The year 2024 promises to be eventful as we anticipate significant changes in tax legislation and the digitalization of tax compliance requirements at the Tax Office in Suriname. In this Year-End Bulletin, we provide you with an outline of several announcements for entities and individuals, taking effect on January 1, 2024. We will also look at the key changes that may come into effect in 2024.
Tax Free Allowance
Per January 1st, 2024 the Tax-Free allowance is set to be SRD 9,000.
Tax Deduction
Per January 1st, 2024 the General Tax Deduction is set to be SRD 400.
Wage Tax Brackets
The wage tax brackets, as announced by the President of Suriname, as of January 2024 will be as follows:
| 2024 | ||
| SRD | SRD | Wage tax rate |
| – | 3,500.00 | 8% |
| 3,500.00 | 7,000.00 | 18% |
| 7,000.00 | 10,500.00 | 28% |
| Above | 10,500.00 | 38% |
Online submissions of Wage Tax Returns
The Tax Office has announced that starting January 1, 2024, wage tax – old age premium returns will have to be submitted through the online portal. This means that every withholding agent is obliged to register as such in the online portal. Registrants will only be allowed to have 1 (one) FIN (Fiscal Identification Number), which is a change to the current system. Registration is now open and can be done through the following link: https://portaal.belastingdienst.sr/OPO/
Please note that as part of our commitment to safeguard the interests of our non-resident clients, and to ensure compliance with existing legal frameworks, KGL Tax & Legal has submitted a formal objection letter to the Tax Inspector. Our objection is based on the belief that the proposed changes with regard to the limit of 1 FIN, may be inconsistent with provisions in the Wage Tax Act and the Implementation order (in Dutch: Uitvoeringsbeschikking Loonbelasting).
VAT on Utilities
The VAT rate of 5% on cooking gas, electricity, and water that was introduced to take effect November 1, has been suspended for a period of six months, as announced by the President of Suriname.
Upcoming amendments in 2024 of the VAT Act
The Government and the Unions have recently agreed to work towards a substantial amendment of the VAT Act. In the meantime, a group consisting of Trade Unions, the Government, and The National Assembly will discuss the current VAT Act.
Income Tax Brackets
With the announcement made by the President of Suriname regarding the adjustment of the wage tax brackets, the personal income tax brackets will have to be adjusted accordingly. However, at the time of writing this bulletin, there is no State Decree that legally defines the adjustment.
Possible increase of minimum wage
The current minimum hourly wage is SRD 35 per hour. It is expected that this amount will increase by the 1st of February 2024, once approved by the labor commission.
No retroactive pension premium payments. New State Decrees coming up.
Every employer is obliged to have a minimum government pension scheme in place. In August 2023 two State Decrees were published (S.B. 2023 no. 117 and 118), stipulating the increase of the pension premium basis to SRD 2,250 per month with a maximum of SRD 22,500 retroactively per January 2023. Although there is broad consensus that an increase of the pension premium basis is necessary, several stakeholders were against the provisions in the State Decrees, that regulate that the pension premium basis was increased retroactively.
The Minister of Internal Affairs has confirmed that these provisions will be removed from the State Decrees. Therefore, employers are not obliged to make extra premium payments retroactively. At the same time new State Decrees are being drawn up. The introduction of these State Decrees is scheduled for January 1, 2024.
Proposal to exempt dividend from income tax
An initiative proposal for an amendment of the Income Tax Act and the Dividend Tax Act has been filed with the National Assembly. The proposal aims to exempt dividend payments to individuals residing in Suriname from income tax, under certain conditions. According to the draft explanatory memorandum the amendment is proposed to promote the investment climate in Suriname.
The proposed amendments were discussed in a meeting of the committee of rapporteurs of the National Assembly on December 21, 2023. Several points of concern were raised by Tax Specialist Stanley Esajas who was invited by the committee to give his view on this proposal. The committee will meet again at a time to be determined.
If you have questions or concerns regarding any of the above-mentioned points, please don’t hesitate to contact us via email on: info@kgltaxlegal.com.
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