Ardwell Irion
PHILIPSBURG--National Alliance (NA) Member of Parliament (MP) Ardwell Irion has formally submitted an initiative law to the Parliament of St. Maarten proposing what he referred to as “a major reform” of the profit tax system.
Irion said in a press release that the legislation seeks to modernise 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% with a tiered model. Businesses with annual gross revenues of Cg. 600,000 or less will benefit from a 15% tax rate, while all other corporate taxpayers will fall under a 20% 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 in a press release. “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% deduction on wage costs, while those that invest in accredited training programmes can deduct 150% of related expenses. These super deductions are intended to stimulate formal employment, reduce informality, and incentivise 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, it was stated in the release.
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 prioritised and adopted by Parliament before November 2025.
“My approach to legislation going forward is simple. It must be fit for purpose. Whether it is tax reform, labour laws, or economic policy, everything we put forward must address the actual realities of our people and economy. St. Maarten deserves solutions that work, not just rules that exist,” Irion said.
