Income tax for individuals

Excerpt of the income tax law for individuals

The Income Tax Act makes a distinction between resident and non-resident taxpayers. Resident taxpayers are taxable on their worldwide income, while non-resident taxpayers are taxed only on the positive and negative revenue from domestic sources of income.

A person becomes resident taxpayer when the center of his personal economic interests is located in Suriname. This is determined based on facts and circumstances, e.g. the workplace or the place where the family lives. For determining tax residency a residence permit is not a requirement.

Resident taxpayers

Resident taxpayers are taxed on their pure income (read: taxable income). Taxable income is impure income less deductible losses and personal deductions. Impure income is the aggregate amount of what the taxpayer enjoys as positive and negative pure revenue from:

  1. real estate;
  2. capital;
  3. a business e.g. sole proprietorship (profit) and labor (wages);
  4. rights to periodic life benefits;
  5. interest

Taxable income includes taxable income from employment. The income from work paid to a person is subject to wage tax withholding. The wage tax is an input tax on the income tax, where the wage tax is deducted from the income tax due. The wage tax can also serve as a final levy, in case the taxpayer does not need to file a income tax return.

Non-resident taxpayers

Non-resident taxpayers are only taxed on the positive and negative revenue from domestic sources of income:

  1. as far as real estate concerns: real estate located in Suriname
  2. as far as capital concerns:
    • debt claims, secured by mortgage on real estate located or established in Suriname business;
    • rights to shares in the profits of a company, of which the management is settled in Suriname, insofar as they do not arise from securities holdings;
  3. as far as business and labor are concerned:
    • business, insofar as the profit obtained from it can be attributed to a permanent establishment in Suriname, from which the business is conducted;
    • employment as a director or supervisory director of a company established in Suriname;
    • employment, if and insofar as proceeds are obtained from this with regard to the fulfillment or completion of the employment in Suriname;
    • employment, if and insofar as proceeds are obtained from this at the expense of a Surinamese legal person under public law or of a fund of such a legal person, whether or not having legal personality;
  4. as far as rights to periodic of life benefits: rights to leave and non-activity benefits, redundancy pay or pension payable by a Surinamese legal entity under public law or by a fund of such a legal entity, whether or not possessing legal personality.

Income from sources other than those mentioned above are not taxable in Suriname.

Tax rate

The tax rate for individuals is a progressive rate:

Portion of annual taxable income until January 31, 2021Rate
Up to SRD 2,646.-0%
Above SRD 2,646.- up to SRD 14,002.808%
Above SRD 14,002.80 up to SRD 21,919.8018 %
Above SRD 21,919.80 up to SRD 32,839.8028%
Above SRD 32,839.8038%
Portion of annual taxable income from February 1, 2021 until December 31, 2021Rate
Up to SRD 2,646.-0%
Above SRD 2,646.- up to SRD 14,002.808%
Above SRD 14,002.80 up to SRD 21,919.8018%
Above SRD 21,919.80 up to SRD 32,839.8028%
Above SRD 32,839.80 up to SRD 152,646.-38%
Above SRD 150,646.-48%
Tax Credit on the normal rate for the year 2019: SRD 1,500.-
Tax Credit on the normal rate for the year 2020: SRD 6,500.–
Tax Credit on the normal rate for the year 2021: SRD 9,000.–

Tax Return

The Surinamese Income Tax System is referred to as a ‘Self Assessment System’. In this system the taxpayer must calculate and declare the income tax due. By April 15 of the calendar year, the taxpayer must file a provisional income tax return, including an estimate of the tax due for the year. The taxpayer can pay the estimated tax in four equal installments, due no later than April 15, July 15, October 15 and December 31 of that year.

At the end of each year, individuals must file a final income tax return. The due date for filing and payment of the tax amount calculated on the basis of the return (less the payment of the provisional return) is April 30 for individuals. Interest will be charged for late payments. Please note that fines may be imposed if the filing / payment of the required tax return / installment is not completed on time.

Personal Deductions

Taxpayers can claim the following personal deductions:

  1. Interest on the debt of a home mortgage up to a mortgage loan of maximum SRD 125,000. –
  2. Costs of exterior painting for your own home (maximum once every three years)
  3. Premiums for annuities and other periodic disability and old age benefits in kind up to a maximum of 10% of the income.
  4. Necessarily provided benefits and subsistence benefits to needy parents, parents-in-law and own and / or foster children, insofar as the costs exceed 10% of the impure income. Furthermore, the amount may not exceed the needs of the beneficiary of the benefit or benefit, and the income.
  5. Paid necessary costs in connection with illness, childbirth, accident, disability or death of the taxpayer, his spouse and minor own and / or foster children to the extent that the costs exceed 10% of the income.
  6. For each minor living at home and / or foster child aged 18 and older, SRD 8,000.- can be deducted from the impure income if this child is – whether soul deficiencies cannot provide for his own maintenance, provided that no benefit is paid for this child in respect of those persistent physical or mental deficiencies.
  7. Paid annuities, pensions and other periodic benefits such as divorce payments and benefits in kind.

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