Definition of Capital Gains
In Sint Maarten, capital gains are defined as profits derived from the disposal of capital assets. These assets include:
- Real estate properties
- Stocks and shares
- Bonds and debentures
- Business assets
There is no distinction between short-term and long-term capital gains for tax purposes.
Calculation of Taxable Capital Gains
Taxable capital gains are calculated as the difference between the selling price of the asset and its acquisition cost. The formula for calculating capital gains is:
Capital Gain = Selling Price - Acquisition Cost - Expenses
Adjustments or deductions may be allowed in the calculation of the gain, including expenses related to the sale (e.g., brokerage fees, legal fees) and any improvements made to the asset during ownership.
Tax Rates
Capital gains in Sint Maarten are taxed at a flat rate of 15%. This rate applies to all categories of capital gains, regardless of the holding period or the nature of the asset disposed of.
Legal Framework
The taxation of capital gains in Sint Maarten is governed by the following articles of the National Ordinance on Income Tax 2011 (Landsverordening op de Inkomstenbelasting 2011):
- Article 3, paragraph 1, sub a: Defines capital gains as profits derived from the disposal of capital assets.
- Article 10, paragraph 1, sub a: Specifies the flat tax rate of 15% applicable to capital gains.
