Direct taxes provide only a small portion of governmental revenues, and payments have been in arrears for years. By far the greatest tax sources are the bauxite-related industries. Companies are taxed on the sum of all net profits. The corporate income tax has a flat rate of 38%, and the dividend tax is 25%. All the operating costs of a company are tax deductible, at set rates for certain equipment. The main indirect tax is Suriname's value-added tax (VAT). As of 1 December 2002, the basic rate for goods was raised from 8% to 10%, and the basic rate for services, from 7% to 8%. Staple foods are exempt from VAT.
The tax income for the government is estimated to be for 45% income/corporate tax, and 50% VAT.
Non-resident corporations are subject to income tax in Suriname if they have income derived from sources as real property or beneficial rights to real property and profits from enterprises carrying out operations through a permanent establishment (e.g. a branch) in Suriname.
The corporate income tax rate for both resident and non-resident companies is a flat rate of 36 %.
Taxable profits are computed in accordance with sound business practice. In principle, all expenses incurred in connection with the conduct of a business are deductible. If expenses exceed normal arm’s length principle charges and are incurred directly or indirectly for the benefit of shareholders or related parties, the excess is considered a nondeductible profit distribution. Note that there is no specific transfer pricing regulation in the Surinamese tax law. Therefore the general at arm’s length principle apply.
All methods of depreciation are permitted, provided they are in accordance with sound business practice and applied consistently. Depreciation is based on the cost, useful life and salvage value of the asset. There are no official guidelines for depreciation rates. In practice, the rates may be agreed on between the taxpayer and the tax authorities.
The Investment Code 2001 provides tax incentives for new enterprises and expansion of existing enterprises, if they invest in certain sectors mentioned in this law.
These sectors are: agriculture, cattle breeding, fishing industry, aqua culture, mining, forestry, tourism, industry, trade, construction work, provision of services and professional transport.
The facilities are:
- accelerated depreciation;
- tax holiday;
- exemption of payment of import duties, turn over tax at import and statistic duties;