By Bruce Zavon (BonaireTalker - Post #91) on Saturday, November 14, 2009 - 4:55 pm: |
Maybe? Same sort of proposal as discussed before a low income tax rate of about 10-15% (a huge drop from the current progressive rates of up to 47%) plus the AOV/AVBZ taxes on salaries. OB will go from 5 to 8% if it all comes to pass. I haven't seen the details yet. From the Amigoe (Thanks Ms. Porter for the heads up):
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By Susan - www.bsdme.info (Experienced BonaireTalker - Post #664) on Sunday, November 15, 2009 - 7:28 am: |
;-))
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By George Blanchard (Experienced BonaireTalker - Post #340) on Sunday, November 15, 2009 - 6:20 pm: |
What does all this mean for the visitor? I assume higher sales taxes.
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By Bruce Zavon (BonaireTalker - Post #92) on Sunday, November 15, 2009 - 8:15 pm: |
Yep. But being from Florida, a state with no income tax but a good sales tax, "tax the tourist" is always popular. Used to live in Seattle and now when I go back and rent a car they charge double sales tax!! But are you really not gonna come because some of the things you buy (not everything) will cost 3% more? It will hit locals much more.
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By elaine sculley (Extraordinary BonaireTalker - Post #1210) on Monday, November 16, 2009 - 1:03 am: |
poor bonaire don't like the changes at all. big ships coming in sometimes 2 @ a time. building all over the place. like it when it was a simple place. it won't stop me from coming but still don't like it
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By George Blanchard (Experienced BonaireTalker - Post #342) on Monday, November 16, 2009 - 2:34 pm: |
We'll still come to Bonaire but just wondering what will be taxes. Is food subject to tax? Are groceries taxable? I am sure accommodations will be taxed at the higher rate.
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By Ruth van Tilburg (Extraordinary BonaireTalker - Post #1177) on Monday, November 16, 2009 - 4:53 pm: |
Groceries (and dining out) have been taxed since the start, along with almost every item or service you can purchase. What we pay for services, such as lawyer's and accountant's fees, most imports and even rent, have also been subject to the existing 5% (OB) sales tax. The new proposed sales tax will be 8% (ABB)...however, I think the big difference will be where we (the businesses collecting these taxes) pay them. Currently, the 5% OB tax goes to "Land" (Curacao/central govt), as do all import duties charged (also proposed is the elimination of import duties). The 8% ABB tax will be collected by "Eiland" (Bonaire).
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By Sparty (Experienced BonaireTalker - Post #265) on Monday, November 16, 2009 - 11:34 pm: |
I am a bit confused regarding Ruth's description of the current tax situation. Normally a sales tax is only applied at the time of sale to the final consumer and is not charged at the wholesale levels. If the 5% is being charged at each level, is it on total value or is it a "value added tax" and only charged on the increase in value at each step?
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By Ruth van Tilburg (Extraordinary BonaireTalker - Post #1178) on Tuesday, November 17, 2009 - 9:36 am: |
Yep Sparty, the 5% is being charged each time someone or a company buys an item, from the time it lands on Bonaire (on top of import duties). Some wholesalers were given a tax break not to have to pay the 5% at the time of import, but like you said, lots of paperwork, etc.; the middle-man/retailer still pays it, as does the final destination (I hope this part changes too; if it doesn't, there will remain 2 layers of taxes-steps 2 & 3 above). And all of that money goes to Curacao. With Bonaire breaking away from Curacao, where tax money goes has to be re-thunk. ;-p
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By George Blanchard (Experienced BonaireTalker - Post #344) on Tuesday, November 17, 2009 - 12:48 pm: |
Ruth, thank you for your explanation. Just like the States, the tax man always has his hand out.
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By Vincent Vethaak (BonaireTalker - Post #34) on Wednesday, November 18, 2009 - 9:04 am: |
Hi Bruce,
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By Bruce Zavon (BonaireTalker - Post #93) on Wednesday, November 18, 2009 - 9:50 am: |
Thanks Vincent, good article. I'm sure Bonaire has also had its share of people who consider it a "tax free land" because the enforcement of the income tax laws has been lax or inconsistent. It's a complex world and a small office like we have on Bonaire couldn't possibly police it. This is the main reason for switching to more reliance on an sales tax based system, and in this island's case I think it makes sense. Personally I think there should be an exemption for basic necessities like food at the grocery store and drugs at the pharmacy. But I don't have a vote, so I'll just be curious to see how it turns out. Hopefully some decision soon; uncertainty is a bad thing.
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By Vincent Vethaak (BonaireTalker - Post #35) on Wednesday, November 18, 2009 - 9:53 am: |
For future BES reference this site may be of help:
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By Ruth van Tilburg (Extraordinary BonaireTalker - Post #1180) on Wednesday, November 18, 2009 - 10:42 am: |
Some basic foods are tax exempt now, like eggs, powdered milk, plain bread (I think-it's a small list if I remember correctly; I wish more were, especially fruits & vegetables); also, prescriptions are tax exempt. If you buy medicine at the pharmacy without a doctor's prescription, then it is taxable.
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By Nicole Bouten (New BonaireTalk Poster - Post #1) on Monday, December 14, 2009 - 7:18 pm: |
Flat tax = loonbelasting + AOV + AVBZ or only loonbelasting?
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By Bruce Zavon (BonaireTalker - Post #94) on Tuesday, December 15, 2009 - 10:29 am: |
If it goes forward, the current proposal is to combine the Loonbelsating/Income tax with the premium based taxes (AOV and AVBZ), so a flat 30.4% for all income (less the $9,000/NAF16,000 base) plus an exclusion of the first $5,000 of interest and $%,000 of dividends. If you are age 60 and over the rate is 3.6% on the first $36,000/NAF63,000, then 30.4%. Capital gains will now be subject to tax. Not sure about gains on rental property, whether the flat 35% deduction from gross rent and the passive investor/entrepreneur distinction will continue.
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By Vincent Vethaak (BonaireTalker - Post #38) on Thursday, December 17, 2009 - 3:02 pm: |
The new proposed flat tax system on income is made easy comparing with today's progressive rates.( less calculation ). Unfortunately the result is practically the same. When you perform a calculation it differs only a few bucks ( the 4th draw ). So no big changes on income tax.
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