View Full Version : New Tax Laws October 1, 2011

Bruce Z
10-04-2011, 04:51 PM
Starting October 1 a number of changes have been adopted in the Bonaire tax laws. Nothing as dramatic as the changes at 1-1-11 but a few worth noting to those buying things or becoming resident here, all good news. Due to high inflation, the tax brackets are being adjusted and due to the high ABB collecting more than anticipated it is being lowered by 25%. These are all effective as of October 1.

1. ABB rate has dropped from 8% to 6%.
2. The zero bracket for income increased from $9,750 to $10,813. (So this means for the last quarter of 2011 the tax free rate is higher, not for the whole year. So for all of 2011 the tax free bracket is $10,016. Same concept for 2 and 3 below.)
3. The child credit for the first child increases from $1,250 to $1,386, for 2 children from $2,500 to $2,772, but there is no further adjustment for this allowance if you have more than 2 children.
4. The elderly credit increases from $200 to $1,222
5. The "customary wage" for a business owner is reduced from $20,000 to $14,000/year. This is the deemed salary for a business owner, since corporate taxes are still 0%. The rate can be higher or lower depending upon the circumstances of the business.

More info available at BCN. http://www.belastingdienst-cn.nl

10-05-2011, 09:21 AM
Thanks, Bruce. Good news, indeed.

10-06-2011, 09:50 PM
Hey Bruce

Thanks for the good news. I have a house permit coming out of the city any day now. Isalnd time that is 3 weeks or so. The 2 percent adds up on the house build. Will the same be true for the 8 percent on imports as well. I will be on isalnd in two weeks and would like to talk about taxes in general on income and residencey difference on the taxes of property. We have sold our place at the Bellafonte and building in Sabadeco. My wife is going to file for residency in Nov. or at least get started. I at present will not be able to stay over the 6 month stay . I need to understand a little more about the double taxation on world income. Thanks and hope to visit in the future.

Bruce Z
10-07-2011, 01:27 PM
Yes that 2% will be a nice benefit as long as it is passed along to consumers.

Mike, you have mail.

10-08-2011, 09:46 PM
I read in the Bonaire Reporter that the ABB goes to 6% on Jan. 1. Is it Oct 1 or Jan. 1?


10-08-2011, 10:34 PM
Found the answer. It went into effect on Oct 1 and it's only for services, not for goods.

Bruce Z
10-08-2011, 10:42 PM
Yes, soryry, that is correct. This is from the BCN Brochure:

De Algemene Bestedingsbelasting (ABB) wordt voor diensten verlaagd met 2%. Dat betekent dat:
-- voor Bonaire de ABB wordt verlaagd van 8% naar 6%
-- voor Sint Eustatius en Saba de ABB wordt verlaagd van 6% naar 4%
De verlaging van de ABB heeft alleen betrekking op diensten, zoals Horeca of andere diensten door
ondernemers. Het ABB-tarief voor de invoer van goederen en voor levering door producenten blijft
gehandhaafd op 6% (Saba en Sint Eustatius) en 8% (Bonaire).
Ingangsdatum: 1 oktober 2011

And this is my translation to English:

The ABB for services is reduced by 2%. That means: - Bonaire for the ABB is reduced from 8% to 6% - Sint Eustatius and Saba ABB is reduced from 6% to 4%. The reduction in the ABB applies only to services such as catering or other services by entrepreneurs. ABB rate for imports of goods for delivery by producers remains at 6% (Saba and Sint Eustatius) and 8% (Bonaire). Effective Date: October 1, 2011

10-09-2011, 05:10 PM
The General Expenditure Tax (Algemene Bestedingsbelasting or ABB) for services will be lowered by
2%. This means that:
-- for Bonaire, the ABB will be lowered from 8% to 6%
-- for Sint Eustatius and Saba, the ABB will be lowered from 6% to 4%
The lowering of the ABB only relates to services, such as hotel and catering services or other services
provided by entrepreneurs. The ABB rate for the import of goods and for the supply of goods by
manufacturers will continue to be at 6% (Saba and Sint Eustatius) and 8% (Bonaire).
Start date: October 1st, 2011
Travelers to BES Islands and inhabitants of BES Islands who return to their island have an exemption
for the import of authorized products up to USD 500 instead of USD 175.
This applies to persons aged 15 years or older. A new exemption of USD 150 applies to persons
younger than 15 years of age.
Start date: October 1st, 2011
The amounts included in the Belastingwet BES for the general tax-free allowance, the child
supplement and the elderly supplement will be:
-- adjusted to inflation (increase of 5.9%)
-- additionally increased (increase of 5%)
Explanatory notes are given below.
As of October 1st, 2011, the general tax-free allowance will be increased from USD 9,750 to USD
10,813 on a yearly basis.
As of October 1st, 2011, the child supplement for 1 child will be increased from USD 1,250 to USD
1,386 on a yearly basis. As of October 1st, 2011, the child supplement for 2 children will be increased
from USD 2,500 to USD 2,772 on a yearly basis.
For the third and subsequent child, you receive no child supplement.
As of October 1st, 2011, the elderly supplement will be increased from USD 200 to USD 1,222 on
a yearly basis.

The BES Islands have pension beneficiaries who do not have enough years of service in order to
accrue a (full) old-age pension. It happens that they receive a full old-age pension, but that, in order
to compensate for this, pension contributions must be withhold.
This compulsory withholding of premium contributions may (if applicable) be deducted from the
base for wage tax and national insurance contributions. However, a condition is that the party
paying the pension settles these premium contributions directly with the pension.
Start date: October 1st, 2011

Our tax is changing
Visit www.belastingdienst-cn.nl for more information.
Until October 15th, special telephone numbers can be called
for more information:
GET: call Josefina Diaz at: 7959013 on working days between
9.00 am and 4.00 pm.
Wage Tax: call Joyce Domacasse at: 7959017 on working days
between 9.00 am and 4.00 pm.
Saba and Sint Eustatius
GET and Wage Tax: call Candy Woodley at: 4165457 on
working days between 9.00 am and 4.00 pm.