PHILIPSBURG:--- Deputy Prime Minister and Minister of Finance Richard Gibson Sr announced on Wednesday during the Council of Minister's press conference that the Council of Ministers on Tuesday amended the legislation for foundations. Minister Gibson said in 2015 the parliament of St. Maarten passed a law that has some undesirable consequences for foundations and as such all foundations has to file taxes and this placed a heavy burden on the foundations that have to pay for the services of accountants.
The Minister said that there are foundations that are performing community services while some are conducting businesses.
He said those foundations that are performing services for the community and also helps with social issues within the community. Minister Gibson said the law that was passed in parliament was never intended to burden the foundations that are providing community services, and as such a correction (amendment) was made to the legislation on Tuesday whereby foundations that are not operating a business is exempted from the filing of taxes
However, foundations and associations that are conducting businesses and have an income, they still have to file their taxes like all other businesses.
Asked about if foundations that are receiving a subsidy from the government still have to provide government with audited financial statements annually.
The Minister of Finance said that they also made a change in that law because, in the beginning, it states that foundations and associations that receive NAF.25,000.00 in government subsidy have to provide the audited financial statements which cost these entities a lot of monies. He said that the amendment made now states that foundations and associations that receive NAF.250,000.00 will have to provide the audited financial statements while those that receive less than the NAF.250,000.00 could have their financial statements prepared by the Ministry of Finance since these foundations do have to give government account on how they are spending the taxpayers monies that are given to them.
Legislation on Foundations Amended --- Foundations that are not operating as businesses does not have to file tax declaration.
