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Draft Tax Plan for 2025 Presented

Representatives from the Ministry of Finance, Jeroen Adler and Kim Boon, visited Saba on May 13th and 14th to present the draft tax plan for 2025.


Meetings were held with the Executive and Island Councils, Saba Business Association, Chamber of Commerce and community members were also invited to attend a town hall meeting on Monday evening.


Some points of change for the 2025 tax plan include:

1. Linking Tax-Free Allowance with Legal Minimum Wage: The personal income tax-free allowance will now be aligned with the legal minimum wage. This means that a person earning the minimum wage will not have to pay any personal income tax.


2. Reduction in Second Income Tax Band: The income threshold for the second band of personal income tax will be significantly reduced. Previously, this band started at USD 322,769, but from 2025 onwards, this will begin at USD 50,000.


3. New Tax Rate of 35.4% for Higher Incomes: Any income above the new $50,000 threshold will be taxed at a rate of 35.4%. However, it's important to note that this rate only applies to the income exceeding $50,000 - not the entire amount.


4. Stronger Employee Data Administration: Employers will be required to manage and report their employee data more effectively. This is designed to help curb the issue of undocumented employees.


The representatives also acknowledge that Saba is an island economy with high importation fees and therefore encourage transparency and input from the community on the future taxation plans.


For this reason, it is imperative to provide your feedback on the draft tax plan for 2025 before June 30 to Jeroen Adler via email: j.adeler@minfin.nl


The finalization of the tax plan will take place on Prinsjesdag (Budget Day) in the Netherlands, scheduled for Tuesday September 17th, 2024.

 

More information about the summary of measures for 2025 can be found in the PDF below:


Draft Tax Plan 2025 BES
.pdf
Download PDF • 133KB

 

 

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