Kingdom of the Netherlands—Sint Maarten: Technical Assistance Report—Sustainable Tax Reforms
IMF Staff Country Reports, October 19, 2021
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- Kingdom of the Netherlands—Sint Maarten: Technical Assistance Report—Sustainable Tax Reforms
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Bibliographic details
- Published: October 19, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781616351113.002
Economic shocks and fiscal impact
- Two major hurricanes struck the island in 2017 causing significant damage.
- Reconstruction was largely financed by insurance proceeds and grants from The Netherlands.
- Economic recovery from the hurricane damage was slow.
- In early 2020 the coronavirus pandemic shut down most of Sint Maarten’s tourism sector.
- Fiscal revenue outcomes:
- Fiscal revenue declined by 15 percent since 2016.
- Payroll tax revenue declined by only 4.5 percent.
- Turnover tax revenue declined by 23 percent.
External financial support and agreements
- Since April 2020, The Netherlands provided immediate financial support to cushion the economic shock of the pandemic.
- In December 2020, Sint Maarten concluded an agreement with The Netherlands to receive more substantial financial support for recovery and ensuring long-term fiscal sustainability.
- The agreement conditions:
- Authorities committed to make structural changes to their tax system.
- Reforms aimed to make the system more growth-friendly and equitable.
- Reforms aimed to optimize and ensure the tax system’s revenue mobilization capacity.
Tax reform objectives and themes
- Make the tax system more growth-friendly.
- Improve equity in tax incidence.
- Optimize revenue mobilization capacity to strengthen long-term fiscal sustainability.
- Implicit policy focus areas reflected in subjects and keywords:
- Income, Income and capital gains taxes, Income tax systems, Personal income tax, Property tax, Taxes
- Capacity development mission and engagement with Sint Maarten’s authorities
Publication and document specifics
- Publication date: October 19, 2021
- Pages: 32
- Volume: 2021
- Issue: 231
- Series: Country Report No. 2021/231
- DOI: https://doi.org/10.5089/9781616351113.002
- Stock No: 1SXMEA2021001
- ISBN: 9781616351113
- ISSN: 1934-7685
International Monetary Fund. Fiscal Affairs Dept. "Kingdom of the Netherlands—Sint Maarten: Technical Assistance Report—Sustainable Tax Reforms", IMF Staff Country Reports 2021, 231 (2021).
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