Dear Weekender,
Sint Maarten is celebrated for its vibrant culture, buzzing nightlife, and world-class festivals that attract artistes and audiences from across the globe. From international musicians performing at our open-air concerts to comedians, DJs, and dance troupes lighting up the stage, the island thrives on cultural exchange.
But while the spotlight shines on stage, behind the scenes, visiting artistes must also navigate the less glamorous, but equally important, reality of taxation. Foreign entertainers are subject to specific rules under Sint Maarten law, and these can significantly affect their earnings, if not properly understood. Both artistes and promoters benefit from advance planning, clear contracts, and compliance with local regulations.
Wage Tax Withholding
Under the National Ordinance on Wage Tax, foreign artistes are subject to a flat 10% withholding tax on performance fees earned in Sint Maarten. This withholding is handled at the source, meaning the promoter, venue or paying entity must deduct the tax before payment is made. For example, if an artiste earns US $10,000 for a show, $1,000 is withheld and remitted to the Tax Administration.
Income Tax Filing
One common misconception is that the 10% withholding fully settles the tax burden. In reality, foreign artistes must also file an income tax return (Form B) in Sint Maarten.
This return only applies to income sourced within Sint Maarten; worldwide earnings remain outside the scope. Even so, the filing is mandatory, and penalties for late submission or non-filing can be imposed.
Promoters and artistes alike should be aware that filing obligations remain even if the 10% wage tax was correctly withheld. For artistes who make multiple appearances during the year, the return consolidates all fees into a single tax declaration.
Turnover Tax
While wage tax applies to income earned as an individual, Sint Maarten also levies a turnover tax (TOT) at a flat rate of 5% on the supply of goods and services within the territory.
Foreign artistes who work as independent professionals (self-employed performers, DJs, or production companies) may be considered entrepreneurs under the law. In such cases, turnover tax applies to the gross performance fee.
Practical Considerations
Artistes and promoters should clarify tax obligations at the contract stage to avoid surprises. A well-structured agreement should outline which party is responsible for turnover tax or confirm that wage tax withholding will be applied. Engaging a local tax advisor is strongly recommended to ensure compliance and to explore whether structuring options may reduce exposure.
Sint Maarten offers a dynamic stage for international performers, but tax compliance is part of the performance. For foreign artistes, understanding the tax exposure and filing obligations is essential. Proper preparation will ensure that the focus remains on the music and not on unexpected tax bills. #knowyourtaxes
Yours sincerely,
Nicole Echobardo | HBN Law & Tax
