Change in the rate of income tax and wagel tax as of January, 1 2019

ORANJESTAD - One of the changes in the first phase of the tax reform is that of the income tax and wage tax rate.

As is known, the same rate is valid for income tax and wage tax. This rate is important for both natural persons and employers. (Below is an explanation from Departamento di Impuesto (Tax Office) about the valid rate for 2019.

Changes

This table shows the difference between the 2018 rate and the rate valid for 2019.

Changes 2018 2019
Tax allowance   Afl. 20.455 Afl. 27.751
Tariff group   Tariff group 1 Tariff group 2   One tariff group 
Income bracket 14 income brackets

4 income brackets

Of each brackets is changed:
- Income amounts
- Tax percentage
-  Tax amount

Table 2019

The tax table 2019 is as follows:

In order to calculate the tax due, a tax-free amount of a maximum of Afl. 27.751, - per year must be deducted from the pure full-year wage, ie. the taxable income.

For a table income of more than the amount stated in column I, but not more than the amount stated in column II,

the tax amounts to the amount stated in column III, plus the amount that is calculated by taking the percentage stated in column IV. of the part of the table income that exceeds the amount stated in column I.

I II III IV
. 33.587   14,00%
2 33.587 63.369 4.702,18 25,00%
3 63.369 141.783 12.147,68 42,00%
4 141.783 - 45.081,56 52,00%

Example:

Taxable income Afl. 68,864
Tax allowance Afl. 27.751 - / -
Table income Afl. 41.113  -  See income bracket no. 2,  Deduce amount in column II (bracket 2)
Balance Afl. 7.526
Tax on Afl. 41.113 according to column III (bracket 2) Afl. 4,702.18
Tax on Afl. 7526  - 25% according to column IV Afl. 1,881.50 Total tax amount Afl. 6,583.68
To pay Income tax or wage tax Afl. 6,583 (per year)

Customers can use this Excel file from the Tax Office to automatically calculate the tax amount.