Irion Introduces Initiative Law for Tiered Profit Tax and Investment in Jobs and Training | SOUALIGA NEWSDAY

SINT MAARTEN (GREAT BAY) - Member of Parliament Ardwell Irion has formally submitted an initiative law to the Parliament of Sint Maarten proposing a major reform of the profit tax system. The legislation seeks to modernize the country’s corporate tax policy by introducing a tiered structure and targeted deductions that support formal employment and human capital development.

The proposed law replaces the current flat profit tax rate of 34.5 percent with a tiered model. Businesses with annual gross revenues of ANG 600,000 or less will benefit from a 15 percent tax rate, while all other corporate taxpayers will fall under a 20 percent flat rate. This marks the first structural differentiation based on business size and turnover in the country’s tax code.

“Our tax laws need to reflect the real composition of our economy,” Irion stated. “This reform eases pressure on small and medium enterprises while still ensuring broad-based contribution.”

In addition to the new rate structure, the legislation introduces two key incentives to promote inclusive growth. Businesses that formally employ workers will be eligible for a 150 percent deduction on wage costs, while those that invest in accredited training programs can deduct 150 percent of related expenses. These super deductions are intended to stimulate formal employment, reduce informality, and incentivize long-term investment in workforce development.

To ensure sustainability and strengthen tax governance, the initiative law also revises the treatment of various deductible categories. Certain deductions will be simplified, capped, or phased out to improve clarity, ensure fairness, and reduce administrative complexity.

The legislation includes an annual evaluation requirement for the Minister of Finance to report to Parliament on its impact and fiscal performance. It is expected to take effect on 1 January 2026, provided the law is prioritized and adopted by Parliament before November 2025.

“My approach to legislation going forward is simple. It must be fit for purpose,” said Irion. “Whether it is tax reform, labor laws, or economic policy, everything we put forward must address the actual realities of our people and economy. Sint Maarten deserves solutions that work, not just rules that exist.”