Sunbelt Blog

December 2016

KPMG

Meijburg & Co Caribbean

Tax & Legal

Your tax residence determines your tax obligations.

If you do not originate from the Caribbean Netherlands but wish to stay here for a longer period you have to request a residence permit or, if applicable, an ’admission ex jure’. If your request is granted you can be registered in the civil register and obtain an identity card. Whether the Caribbean Netherlands is also your country of residence for tax purposes, is a different issue. As a tax resident of the Caribbean Netherlands your worldwide income would be subject to income tax in the Caribbean Netherlands, including income derived from, for example, shares in foreign companies, savings and investment accounts. As a non-resident for tax purposes, income tax would only be due on your income derived from the Caribbean Netherlands.

Obtaining an identity card does not automatically result in the Caribbean Netherlands becoming your tax residence too. This also applies vice versa: an unregistered person may nevertheless qualify as tax resident and domestic taxpayer. The civil register can in principle be used as the starting point in determining your tax residence, but is generally not the decisive factor. A person's tax residence is namely determined based on the ’circumstances’. It has been developed in case law which ’circumstances’ are exactly relevant. Amongst others, it needs to be assessed whether you have lasting personal ties with the Caribbean Netherlands. Factors such as a residence permit and identity card are secondary to other factors such as the location of your main residence, the purpose of your stay in the Caribbean Netherlands, where your family and friends are and in which country/ies you are employed and earn your income.

Meijburg & Co Caribbean has extensive experience in analyzing tax residence and is looking forward to assisting you in this matter.

mr. Jaap W.J. Roks


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The information contained herein is of a general nature and does not address the specific circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.