Wage Tax

Summary of the wage tax law
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After legislation change on November 30, 2020, State Decree of November 30th 2021 and Approval of the Parliament on January 15th 2021.

Wage tax is deducted from employment income at source, by a withholding agent (generally the employer).

The Wage Tax Act determines who is obliged to withhold wage tax (withholding agent). The wage tax is the final levy for those that have only one employer-employee relationship and do not have other sources of income. Otherwise, the wage tax is an advance levy on the income tax.

The wage tax return must be filed on the seventh working day of the month following in which the pay period ended. Payment of the wage tax must be made simultaneously on the day that the wage tax return is submitted.

In the event of non-compliance with wage taxes and/or payment obligations, the Inspector can impose an additional tax assessment with a fine that varies between 10% and 100% of the taxes owed.

According to the Wage Tax Act, the net wage (= wage minus allowable deductions) is taxable.
The law states that wages are everything, under whatever name and form, that is enjoyed based on an employer-employee relationship or a former employer-employee relationship. The consequence is that any benefit enjoyed from the employer-employee relationship is in principle taxable. ”In principle”, because the  legislator has provided that  certain entitlements and benefits should not be counted as wages.

Benefits in kind are also considered as income from employment.

The deductible costs are set at 4% of the wages, with a maximum of SRD 1,200 per year.

Wages do not include: 

allowances, if the withholding agent can provide evidence that and to what extent these are relevant and necessary costs, which ensue directly from the fulfillment of an employer-employee relations­hip.

Wages furthermore do not include:

  • Claims based on a pension scheme
  • Claims under the Surinamese Accident Regulation
  • Cash benefits and benefits in kind pursuant to a claim that is part of the wages
  • Amounts, which are withheld on the basis of obligatory con­tributions in pursuance of a pension scheme
  • The value of the transportation for the employee to travel from his home or residence to his place of employ­ment, in so far as the transportation takes place by or in order of the employer
  • Child allowances up to an amount of SRD 50 per child per month with a maximum of SRD 200 (4 children) per month
  • Holiday allowances up to, per year, the amount of the wages for a month with a maximum of SRD 4,000
  • Gratuities and bonuses to an amount not exceeding a monthly wage, with a maximum of SRD 4,000.
  • Claims to benefits due to demise or disability resulting from an accident
  • Claims to periodic benefits to replace lost wages
  • Cash benefits and benefits in kind to cover the costs of the employee regarding childbirth, illness and disability
  • Cash benefits and benefits in kind with regard to demise
  • Benefits in kind in the form of training courses provided by the employer to the employee
  • Cash benefits and benefits in kind for compensation of the employee, who in connection with his employment, has suffered damage to or loss of his goods
  • Claims to anniversary benefits
  • A pension payment twice the AOV amount per year. As of November 1, 2020: SRD 750 times 2 equals SRD 1.500 per month. Total for the year 2020: SRD 13,500
  • Exchange Rate compensation up to an amount of SRD 100 per month. November 2020 and December 2020: extra up to an amount amount of SRD 300 per month, if the monthly wage does not exceed SRD 12.500. The employer should pay out an extra exchange rate compensation. The higher exempt amount cannot be used as a deduction on the normal wage.
  • Anniversary benefits (with different maximums)
AnniversaryExemption
10 yearsa quarter of the wages over a month
15 yearshalf of the wages over a month
20 yearsthree-quarters of the wages over a month
25 yearsone-month wages
30 yearsone and a half times the wages over a month
35 yearstwo times the wages over a month
40 yearsthree times the wages over a month

Pursuant to the Wage Tax Act, the benefits in kind mentioned hereinafter are assessed as follows:

Free use of company carat least 2% of the list price, per year
Free housing71/2% of the yearly wage in money
Complete or partially free medical care3% of the yearly wage in money, with a maximum of SRD 200 per year
Free board and lodgingSRD 10 per day
Free boardSRD 5 per day
Hot mealSRD 5
Bread mealSRD 1.50
Free gas, electricity and waterthe amount which would otherwise have been charged to the employee in respect thereof

Rates in the Wage Tax Act:

Tax free sum per year: SRD 2,646

Tax free some per month: SRD 220.50

Table 1 Normal rate per year up to and including January 31, 2021

Amount per year up to and including January 31, 2021rate
up to SRD 11,356.808%
exceeding SRD 11,356.80 up to SRD 19,273.8018%
exceeding SRD 19,273.80 up to SRD 30,193.8028%
exceeding SRD 30,193.8038%

Table 2 Normal rate per year from February 1, 2021 up to and including December 31, 2021

Amount per year up to and including December 31, 2021rate
up to SRD 11,356.808%
exceeding SRD 11,356.80 up to SRD 19,273.8018%
exceeding SRD 19,273.80 up to SRD 30,193.8028%
exceeding SRD 30,193.80 up to SRD 147,35438%
exceeding SRD 147,35448%
Tax discount on the normal rate for the year 2019: SRD 1,500
Tax discount on the normal rate for the year 2020: SRD 6,500
Tax discount on the normal rate for the year 2021: SRD 9,000

Table 3 Normal rate per month up to and including January 31, 2021

Amount per month up to and including January 31, 2021rate
up to SRD 946.408%
exceeding SRD 946.40 up to SRD 1,606.1518%
exceeding SRD 1,606.15 up to SRD 2,516.1528%
exceeding SRD 2,516.1538%

Table 4 Normal rate per month from February 1, 2021 up to and including December 31, 2021

Amount per month up to and including December 31, 2021rate
up to SRD 946.408%
exceeding SRD 946.40 up to SRD 1,606.1518%
exceeding SRD 1,606.15 up to SRD 2,516.1528%
exceeding SRD 2,516.15 up to SRD 12.279,5038%
exceeding SRD 12.278,5048%
Tax discount on the normal rate per month
up to and including April 2020 SRD 125

Tax discount on the normal rate per month
for May 2020 up to and including December 2021: SRD 750

Table 5 Lump sum benefits up to and including January 31, 2021      

Amount per benefit up to and including January 31, 2021rate
up to SRD 11,356.805%
exceeding SRD 11,356.80 up to SRD 19,273.8015%
exceeding SRD 19,273.80 up to SRD 30,193.8025%
exceeding SRD 30,193.8035%
To apply this rate, a request must be submitted to the Inspector.

Table 6 Lump sum benefits from February 1, 2020 up to and including December 31, 2021      

Amount per benefit up to and including December 31, 2021rate
up to SRD 11,356.80 5%
exceeding SRD 11,356.80 up to SRD 19,273.8015%
exceeding SRD 19,273.80 up to SRD 30,193.8025%
exceeding SRD 30,193.80 up to SRD 147,35435%
exceeding SRD 147,35445%
To apply this rate, a request must be submitted to the Inspector.

Table 7 Overtime

Amount per monthrate
up to SRD 500     5%
exceeding SRD 500 up to SRD 1,10015%
exceeding SRD 1,10025%

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