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- Basic Facts
- Statutory Labor Requirements
- Employee Income Tax In Brazil
- Employee Social Security In Brazil
- Deductible Expenses In Brazil
- Immigration In Brazil
- Value Added Tax (VAT) In Brazil
- Withholding Tax In Brazil
- Terminating Employee In Brazil
- Statutory Employee Benefits In Brazil
- Payroll In Brazil
- Ease Of Doing Business In Brazil
- Business Opportunities In Brazil Section
- Why Use Global Expansion To Hire Your Employees In Brazil
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BASIC COUNTRY FACTS
Suriname
Paramaribo
- Dutch
- Sranan Tongo
575,991
Suriname Dollar
.sr
+597
Suriname Dollar
STATUTORY LABOR REQUIREMENTS
Probation Period
- The probation period may not exceed 2 months; any provision which stipulates a longer probation period or the commencing of a new probation period after termination of the probation period, is null and void.
Annual Leave
- In Suriname every employee who works a full calendar year without interruption for the one employer, is entitled to 12 vacation days per year.
- Using the vacation is obligatory.
- An employee is considered to be employed without interruption if the number of his permitted absent days does not exceed the number of 30 days, excluding the days of sick leave and industrial accidents.
Public Holidays
- New Year's Day (1st January)
- Chinese New Year (25th January)
- Day of Liberation and Innovation (25th February)
- Holi (9th March)
- Good Friday (10th April)
- Easter Sunday (12th April)
- Labor Day (1st May)
- Eid al-Fitr
- Keti Koti (1st July)
- Eid al-Adha
- Indigenous People's Day (9th August)
- Maroons Day (10th October)
- Diwali
- Republic Day of Suriname (25th November)
- Christmas Day (25th December)
Maternity Leave
- There is no mandatory maternity leave in Suriname
Paternity Leave
- There is no mandatory paternity leave in Suriname
Work Hours
- According to the Labor Code of Suriname there is the limit of maximum working hours for the employee established at the rate of 8.5 hours per day or 48 hours per week.
Overtime
- If an employer requires its personnel to perform overtime, it needs to request an ‘overtime-permit’ from the Labor Inspection.
Notice Period
- The notice period is related to the years of service of the employee at the time of termination and may extend up to 6 months for the employer and a maximal 3-month notice period applies for the employee giving notice.
- The notice period which needs to be taken into account by an employee may be up to a maximum of six months.
- Extension of the notice period is only possible when parties have agreed to such in writing.
Severance
- The 1859 civil code requires employers to provide a severance pay
-
- equal to four weeks of the employee's wages for four or fewer years of service;
- one week of wages for each year of service for five to nine years of service;
- four months of wages for 10 to 15 years of service; or
- six months of wages for more than 15 years of service.
13th Month Salary in Brazil
- Yes (Mandatory)
- There is no statutory requirement to pay the 13th or the 14th month salary.
- However employers must pay a vacation allowance that equals to 50% wages in addition to the employee normal salary.
INCOME TAX
- Residents are taxable on their worldwide income.
- Nonresidents are taxable only on income derived from certain Suriname sources.
- Nonresidents are generally subject to personal income tax from their first day in Suriname.
- A resident individual who receives income, wherever earned, from former or current employment is, in principle, subject to income tax in Suriname.
- Taxable employment income consists of employment income, including directors’ fees and supervisory directors’ fees, less itemized and standard deductions and allowances, pension premiums and social security contributions (old-age insurance contributions), whether paid or withheld.
- Nonresident individuals receiving income from current or former employment carried on in Suriname are subject to income tax in Suriname.
- Nonresident individuals employed by Suriname public entities or funds established by such entities are subject to tax on income in Suriname even if the employment is carried on outside Suriname.
- In principle, wage tax is withheld from individuals’ earnings.
- Resident and nonresident individuals are subject to income tax at the same progressive rates.
- The following are the individual income tax rates and tax brackets.
|
Taxable amount |
Tax Rate (%) |
|
|
Exceeding SRD |
Not Exceeding SRD |
|
|
0 |
2,646 |
0 |
|
2,646 |
14,002.8 |
8 |
|
14,002.8 |
21,919.8 |
18 |
|
21,919.8 |
32,839.8 |
28 |
|
32,839.8 |
- |
38 |
DEDUCTIBLE EXPENSES
Personal Deductions
- Mortgage interest paid that is related to the taxpayer’s dwelling (limited to interest payments on a maximum debt of SRD125,000).
- Exterior paintwork expenses related to the taxpayer’s dwelling (limited to once in three years).
- Under certain conditions, pension, annuity and other periodic allowance payments.
- Life-insurance premiums that entitle taxpayers to annuity, pension or other periodic allowance payments (up to a maximum of 10% of income).
- Alimony payments if they meet the threshold amount.
- Medical expenses, educational expenses and support for up to second-degree relatives if they meet certain threshold amounts.
- Under certain conditions, an amount up to SRD8,000 for a disabled child.
- Acquisition costs (also available to nonresidents) for taxpayers deriving employment income.
- The deduction is limited to 4% of the wage, with a maximum of SRD1,200, if specified expenses are paid under certain conditions.
Business Deductions
- In general, business expenses are fully deductible if the expenses are incurred in accordance with sound business practices.
- However, the deduction of certain expenses is limited.
|
Deductible Expenses |
|
|
Personal Deductions |
|
|
Business Deductions |
|
IMMIGRATION
- In general, foreign individuals who wish to reside and work in Suriname need residency and working permits.
- The conditions for obtaining such permits depend on the nationality of the individual.
- Foreigners with a visa requirement (with exception for those of Surinamese origin), who intend to stay in the Republic of Suriname for a period of longer than 90 days, should apply for an Authorization for Temporary Stay (MKV = Machtiging tot Kort Verblijf) at least 3 months before the intended departure to Suriname.
- The validity of this permit depends upon the nationality of the individual.
- Individuals must contact their nearest embassy to get more details.
- The documentation needed for MVK are as follows: -
-
- A completed Authorization for Temporary Stay (MKV) application form
- Two recent passport photographs
- A copy of all written pages in the passport (stamps, visas, etc.); passport must be valid for 6 months upon arrival in Suriname
- A certified copy of the birth certificate
- An original certificate of good conduct
- Bank statements or other documents/information proving sufficient financial means during stay in Suriname
- If application concerns internship or voluntary work: a copy of an official letter of the organization/institution in Suriname stating the purpose and duration of agreement
- If applicant intends to work in Suriname: a copy of the labor/employment contract
- Proof of residence (if applicable)
- Proof of marital status:
- If married/divorced/single/widow: a certified copy of marriage license/divorce certificate/proof of widowhood.
- If cohabiting (partner relationship): proof of cohabitation in the country
- Notarized letter of consent by parents and a copy of the birth certificate:
- If a child (up to 17 years) is traveling alone
- If a child (up to 17 years) is traveling with one of the parents (with consent of the 2nd parent)
- a certified copy of the judicial decision in case of adoption/legal guardianship of a child (up to 17 years)
- A copy of a statement of guarantor in Suriname (in case of insufficient funds of applicant)
- A copy of valid health insurance
- A health certificate
|
Type of Visa/ Permit |
Documentation |
Validity |
Eligibility |
|
Temporary Residence Permit (MVK) |
|
N/A |
|
VALUE ADDED TAX
- A supply of goods of goods will in principle be taxed in case it is considered a local delivery (the goods are delivered by a local party).
- The supply and import of goods is subject to a VAT of 10%
- The supply of services is subject to a VAT of 8%
- Luxury goods are subject to a VAT of 25%
- Certain goods are exempt from VAT
|
VAT |
|
|
Special rate |
25% |
|
Standard Rate |
10% |
|
Reduced Rate |
8% |
|
Exempt Rate |
0% |
WITHHOLDING TAX
- In principle, a 25% dividend withholding tax is imposed on dividends distributed by resident companies.
- Suriname only has concluded a tax treaty with Netherlands, where dividends withholding tax is 7.5%.
- Suriname does not impose withholding taxes on interest and royalty payments to non-residents.
|
WHT |
|
|
Dividends |
25%; 7.5% (Netherlands) |
|
Interest |
0% |
|
Royalty Payments |
0% |
TERMINATION
- The termination may be effected only on the day or on one of the days specified in the agreement or regulation, or, in the absence of such, on one of the days indicated in the indication of permanent customs; if there is no such indication, the termination may occur on any day.
- The employer can`t cease to operate during the time when the employee, due to illness, can`t perform his work and retains his right to payment.
- The employer can`t terminate during the time when the employee, as a result of performing his compulsory military service or any other legal regulation, or from the government with financial compensation imposed an interim commitment in the interests of internal security of public order and rest, is unable to perform the specified work.
- This provision is not valid for a minor employer, from which employment at the time of temporary prevention has not yet lasted four months.
STATUTORY BENEFITS
- These are mandatory benefits as postulated by law
- These include probationary period, annual leave, public holidays, notice period and severance pay
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
PAYMENTS AND INVOICING
- The standard tax year is the calendar year. However, on request and under certain conditions, a business may use a different financial accounting year as its tax year.
- In principle, Suriname wage tax returns must be submitted for monthly periods.
- Because the Suriname wage tax is a pre-levy on the Suriname income tax, residents and nonresidents remain liable for Suriname income tax if the wage tax is not withheld correctly.
- The wage tax returns must be filed and the wage tax due must be paid by the seventh business day of the month following the end of the reporting period.
- For most nonresident employees, wage withholding tax is a final tax.
- If the fiscal year is the calendar year, resident taxpayers must file a provisional tax return by 15 April of the current fiscal year.
- Otherwise, they must file this return within two and one-half months after the beginning of the current fiscal year.
- The return must show taxable income that is at least equal to the taxable income shown on the most recently filed final tax return.
- In principle, the tax due on this provisional income tax return must be paid in four equal installments, which are due on 15 April, 15 July, 15 October and 31 December.
- An extension of time to file the return and pay the tax is not granted.
- On request of the taxpayer, the Tax Inspector may consent to the reporting of a lower taxable income than the taxable income shown on the most recently filed final tax return.
- Nonresident taxpayers must only file a final income tax return
EASE OF DOING BUSINESS
- The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
- Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
- According to the World Bank Suriname ranked 162nd in the World in 2019 in terms of ease of doing business.
