Member of Parliament Egbert Doran
PHILIPSBURG--National Alliance (NA) Member of Parliament (MP) Egbert Doran is urging the Minister of Finance to provide clarity on the proposed dividend withholding tax, which is scheduled to take effect on January 1, 2026.
Doran expressed concern over what he referred to as “the lack of consistency” in the Minister’s statements and the limited public information available to date.
“When the idea of a dividend tax was first brought forward, the Minister presented it as a key initiative of her tenure. Now that the proposal has sparked public discussion, there seems to be a shift in messaging; suddenly it is being framed as something that started under a previous administration. That inconsistency is concerning, especially with such an impactful change on the table.”
He also pointed out that the framing of the tax as only targeting foreign shareholders is misleading. “In reality, this tax affects all businesses that issue dividends, regardless of whether the shareholder is local or abroad. It’s important that we have a full and honest conversation about who will be impacted and how.”
Doran said St. Maarten already has one of the highest corporate profit tax rates in the region at 34.5 percent. Adding a 10 percent dividend withholding tax brings the total effective tax rate above 43 percent, and that is not even counting the additional 5 percent Turnover Tax (TOT) that businesses must also pay. “At a time when we should be doing more to support our entrepreneurs and stimulate job creation, we must be mindful not to increase the financial burden without careful consideration.”
He also said there appears to be no clear implementation plan available to the public, nor any recent stakeholder consultation or educational outreach. “With a proposed start date of January 1, 2026, the public deserves to know how this will be rolled out, who was consulted, and how enforcement will work.”
He added that even some coalition members have expressed surprise at the announcement, raising concerns about internal coordination and the pace at which this reform is moving forward.
Doran contrasted this approach with tax reforms that were initiated under the previous government, which aimed to bring relief rather than introduce new obligations. These included legislative efforts to repeal outdated taxes such as the Inheritance Tax Ordinance and the Land Tax Ordinance, initiatives that are still under legal review.
“These are the kinds of reforms that provide direct benefit to the people of St. Maarten,” Doran said. “We hope to see those efforts continued and brought to Parliament soon, so that families and homeowners can see some relief.”
As Parliament enters the budget debate, Doran said he will be requesting concrete answers from the Minister of Finance on the legal foundation, projected impact, and preparation surrounding the dividend tax. He reaffirmed his commitment to supporting tax policies that are fair, well-communicated, and focused on long-term national development.
“Our people are not against fair taxation,” he said. “What they expect and deserve is clear communication, thoughtful planning, and policies that are developed with proper dialogue.”
https://www.thedailyherald.sx/islands/mp-doran-minister-should-clarify-mixed-messages-on-dividend-withholding-tax
