Lunar Asset Management advises and guides people filling in their pension scheme.
Their partners will handle legal and fiscal matters, whereas Lunar Asset Management handles management of assets itself. Below the regulation concerning the pension scheme is shown.
Since 1989 the so called Pension Scheme (PR) has been activated. It was altered on 1 January. The old regulation will be maintained for existing matters, although this will also be adjusted to the new regulation where possible.
The new PR as of 1 January
Conditions to be qualified for the PR are as follows:
1) the tax payer should have lived outside the Netherlands Antilles (NA) for at least 60 months before having requested application of the PR.
2) the tax payer should be 50 years of age or older.
3) the tax payer should have reported at the inspector of taxes within 2 months after having registered at the registrar’s office.
4) the tax payer should have bought a house for his own use with a minimal value of Nafl 450.000,00 within 18 months after having registered at the private company.
5) the tax payer and his spouse should not have an income (with the exception mentioned hereafter) and profit income from sources inside the Netherlands Antilles.
6) the rate to be scaled up from income taxes sums 10% and is solely applicable on the income from foreign sources.
For the application of the pension scheme the following clear income is marked as income from foreign sources:
1) the profits of existing or former jobs or of other activities practiced outside the Netherlands Antilles unless it is concerning the profits of existing jobs as commissioner or president of a body that is actually (which means: statutorily elsewhere although governmental – real governance – in the Netherlands Antilles) or statutorily positioned in the Netherlands Antilles.
2) the profits of the enterprise, as far as this has personally been driven with the help of a fixed arrangement or by fixed representatives or representing agents outside the Netherlands Antilles.
3) the profits of immovable properties outside the Netherlands Antilles or on duties on immovable properties.
4) the profits of balances and other debt collections with the exception of:
4.1 claims, assured by mortgages, established on the immovable properties in the Netherlands Antilles.
4.2 claims, not being balances, chargeable to a natural or legal person residing in or statutorily, actually, established in the Netherlands Antilles.
5) the rentable value of ones own home
6) the profits of duties on profits on stocks, shareholders of a firm not established in the Netherlands Antilles.
7) the profits or stocks in, or profit-sharing certificates chargeable to an enterprise that is not statutorily or actually established in the Netherlands Antilles and of which the capital has been completely or partially divided in stocks.
8) the benefit of the estrangement of considerably important shares in or profit-sharing benefits of an enterprise that are not statutorily or actually established in the Netherlands Antilles and of which the capital has been completely or partially divided in stocks.
9) the profits of duties on periodic cash benefits of a natural or legal person not living or being established in the Netherlands Antilles.
10) the capital allowance from life insurances that is paid chargeable to a natural or legal person not living or being established in the Netherlands Antilles.
Factual or statutorily offshore companies established in the Netherlands Antilles will also be regarded as enterprises that are NOT statutorily or factually establishes in the Netherlands Antilles.
Instead of the rate of 10% on the income of foreign sources the possibility exists to present the secure income against the common rate, on the understanding that
a) the option regulation does not have protection of the tax regulation of the Kingdom and
b) the indicated income in that case should be NAfl 500,000.-. This is regardless of the actual world income. This income will be subsequently taxable against normal progressive rates for the income tax that rise from 0% till 49.4%. At a taxable income of 500.000 approximately 230.000 income tax is indebted, as well as 10.000 social insurance premium (General Retirement Insurance and the General Medical Aid Insurance).
One cannot annually choose for one of both schemes. If in any year one chooses for a 10% levy one can apply for the option regulation after 3 years.
Dutch Antillean succession and donation duties
An inhabitant of the Netherlands Antilles can donate a fiscal profitable property. In comparison to The Netherlands the rates for succession and donation duties are low. The rates for succession and donation duties are as follows:
1. Relatives in descending line or the remaining spouse: 2%-6%
2. Relatives in a straight ascending line: 3%-9%
3. Siblings 4%-12%
4. Nephews, nieces or grandchildren: 6%-18%
5. In all other cases 8%-24%
The following is of importance for Dutch penioners. On the basis of the Dutch inheritance act 1956 the so called 10-year term is valid. This means that in case of donation or decease within a period of ten years after the party involved has left The Netherlands, one still has to pay donation or succession duties. This 10-year term does not apply for the Netherlands Antilles.
On the basis of the tax regulation of the Kingdom The Netherlands is not allowed to raise donation duties if a former inhabitant of The Netherlands has lived longer than 12 months in the Netherlands Antilles. In case of residence of the Netherlands Antilles The Netherlands may not raise succession duties in cases of decease.
Labour prohibition and its exceptions
If during a certain year a tax payer or his spouse acquires an income from of local job or income from an independent profession or from activities or services of any kind he will miss the pension scheme of that year.
The tax paper should pay the normal rate of income tax on his income of that year.
If this occurs in two successive years, one can never call upon the pension scheme.
- the employment relationship between de tax payer and an enterprise established in the Netherlands Antilles in which the tax payer is an immediate or indirect shareholder for at least 40% of the nominal paid-up capital.
- being the commissioner of a supervision function within an enterprise established in the Netherlands Antilles.
Old pension scheme maintained for existing matters
Except for a few adaptions the old pension scheme will be maintained for existing matters.
- the condition of having to employ local personnel will be cancelled.
- the rate or 5% (10% for the new regulation) is solely valid for income gathered from foreign sources. The new minimal rate of 10% will be charged over the local income.
Lunar Asset Management does not provide legal or fiscal advice. The text mentioned above is solely meant for information. The information is from a reliable source, although Lunar Asset Management does not guarantee its correctness and completeness.