~Public urged to stop accepting NAf 100 notes~

WILLEMSTAD/PHILIPSBURG:--- The Centrale Bank van Curaçao en Sint Maarten (CBCS) is warning the public about a significant increase in counterfeit NAf 100 banknotes currently circulating in Curaçao. As a precautionary measure, the CBCS advises the public to stop accepting NAf 100 banknotes for payments immediately and for the remainder of the co-circulation period (until July 1, 2025) to prevent the further spread of counterfeit notes. The counterfeit notes are becoming increasingly difficult to distinguish from genuine ones. In this case, Naf 100 banknotes are being presented with trimmed edges. Those offering them claim they were damaged by fire. However, upon closer inspection, these notes are counterfeit. The circulation of counterfeit banknotes in large numbers is a known phenomenon during currency transitions. The CBCS has communicated this risk to the public on several occasions in recent months. Counterfeiters use the co-circulation period to offload their stock of counterfeit currency. Given the current sharp increase in such cases, the CBCS considers it necessary to issue this advisory. The CBCS urges anyone in possession of 100-guilder notes to have them examined for authenticity as soon as possible. This can be done at the CBCS office in Scharloo, Monday through Friday from 8:00 a.m. to 12:00 p.m., provided valid identification is presented. The CBCS is working closely with the police and judicial authorities to trace the source of the counterfeit notes and to prevent further distribution. As a reminder, please note that it is strictly prohibited for any individual or institution to accept or pass on counterfeit banknotes. If you believe that you may be in possession of a counterfeit banknote, it is strongly advised that you contact the police immediately. Counterfeiting or knowingly using counterfeit money is punishable by a maximum of nine years' imprisonment.

Willemstad, June 20, 2025

CENTRALE BANK VAN CURAÇAO EN SINT MAARTEN

PHILIPSBURG:--- During the second draft budget debate for 2025, Member of Parliament Ardwell Irion posed several critical questions regarding the government’s financial planning, the handling of Social and Health Insurance (SZV) payments, and the implementation of the Dividend Withholding Tax (DWT). Minister of Finance Marinka Gumbs addressed these concerns in detail, providing clarifications and defending the government’s approach to fiscal management.

SZV Payments and Surplus Allocation

MP Irion questioned why the government, despite reporting a 50-million-guilder surplus in the first quarter, could not allocate funds to address the shortfall in payments to SZV. He highlighted that SZV requires 6 million guilders per month, yet the government had been paying only 5 million guilders, leading to a growing debt.

Minister Gumbs clarified the situation, explaining the seasonal nature of government revenue. “Q1 and Q4 every year show strong results,” she stated. “However, these results are typically used to offset the decline in collections that we experience during Q2 and Q3. Therefore, it would not be accurate to state that the surplus of Q1 can be used to cover payments to SZV.”

She further noted that discussions with SZV had resulted in an agreement to increase monthly payments to 6 million guilders, effective as of May 2025, thereby addressing the shortfall moving forward.

The 95 Million Guilder Agreement with SZV

MP Irion also referenced a previous agreement for a 95 million guilder settlement with SZV, which he claimed had been endorsed by SOAB and CFT. He criticized the current administration for discarding this agreement and starting the process over, which he argued had increased the debt to 135 million guilders.

Minister Gumbs refuted this claim, stating, “I am uncertain as to what ‘deal’ the Honorable MP is referring to. I would like to emphasize that we do not make deals with the public funds of the people of Sint Maarten. The figure of 95 million guilders stated in the document as an amount to be agreed upon with SZV was not supported by any substantiating documentation.”

She added that neither SOAB nor CFT had formally approved the 95-million-guilder figure, which is why a comprehensive review was requested. “Approving or signing off on such a significant financial commitment without proper justification or a clear understanding of how the amount was determined would have been irresponsible on my part as Minister of Finance,” she said.

Capital Expenditure and Investment Planning

MP Irion raised concerns about the lack of updates in the budget regarding capital expenditure (CapEx) and investment projects. He specifically asked about the timeline for funds and the inclusion of new infrastructure investments in the 2025 budget.

Minister Gumbs acknowledged the challenges in securing CapEx funding for 2025, given the timing of the budget process. “As previously stated, given that we are already midway through 2025, the likelihood of receiving capital expenditure funding for this year is very limited,” she explained. “The Netherlands would have needed to include such funding in their own budget planning in advance. As such, it is most likely that these investments will need to be rolled over and incorporated into the 2026 budget.”

Dividend Withholding Tax (DWT) Revenue Projections

MP Irion questioned the government’s estimate of 10 million guilders in revenue from the DWT, arguing that the figure seemed unrealistic given the lack of data on dividend distributions in Sint Maarten.

Minister Gumbs defended the estimate, explaining that it was based on a comparison with Bonaire, which generates approximately USD 7 million annually from a similar tax. “Taking this into account, and exercising caution and prudence, we estimated a projected revenue of NAf 10 million annually for Sint Maarten,” she said.

However, she acknowledged the need for more concrete data and committed to refining the projections as more information becomes available.

Readiness of the Tax Administration

MP Irion also raised concerns about the readiness of the Tax Administration to implement and enforce the DWT. He questioned whether the current IT systems and staffing levels were sufficient to handle the additional workload.

Minister Gumbs admitted that the Tax Administration is under significant pressure due to limited staffing and resources. However, she assured Parliament that preparations for the DWT’s implementation are underway, including the development of necessary forms and systems. “Certain staff members within the Tax Administration have already been informed, as they are actively assisting with these preparatory steps,” she said.

Political Games and Moving Forward

In a pointed exchange, MP Irion accused the government of playing political games with the budget and tax reform measures. He criticized the lack of consultation and transparency, particularly regarding the DWT.

Minister Gumbs responded by emphasizing her commitment to transparency and collaboration. “It is my responsibility as Minister of Finance to put forward solutions that will help our country move forward—solutions that were already agreed to but not acted upon,” she said. “Let us move away from politics for politics’ sake, and instead work toward actions that benefit all of the people of Sint Maarten, not just a few.”

Conclusion

The exchange between MP Ardwell Irion and Minister Marinka Gumbs underscored the complexities of managing Sint Maarten’s finances. While MP Irion raised valid concerns about errors and oversights in the draft budget, Minister Gumbs provided detailed responses, defending the government’s approach and emphasizing the need for bold but responsible decisions to ensure fiscal sustainability.

As the debate continues, the focus remains on finding solutions that balance economic growth, compliance, and fairness, while addressing the immediate needs of the people of Sint Maarten.

PHILIPSBURG:--- In the ongoing debate surrounding the 2025 budget, Minister of Finance Marinka Gumbs addressed the concerns and misconceptions regarding the introduction of the Dividend Withholding Tax (DWT). The Minister emphasized that this is not a new tax but rather a mechanism to improve compliance and ensure fairness in the tax system.

What is the Dividend Withholding Tax?

Minister Gumbs explained that the DWT is a withholding mechanism, similar to the wage tax system, designed to collect taxes on dividends at the point of distribution. Under the current system, individuals who receive dividends are required to declare this income in their annual tax returns. However, compliance has been inconsistent, particularly among foreign shareholders.

“The proposed dividend tax legislation does not introduce a new type of tax but rather changes the timing and method of collection,” the Minister stated. “Instead of the individual being responsible for reporting and paying the tax at the time of their annual income tax filing, the responsibility will partially move to the company, which will withhold the tax at the moment the dividend is paid out.”

This shift ensures that the government receives revenue immediately, strengthening the country’s liquidity position and reducing the risk of underreporting or non-payment.

Why Now?

The Minister acknowledged that the timing of the DWT’s implementation has raised questions, particularly as Sint Maarten continues to recover economically. However, she emphasized that the measure is crucial for enhancing compliance and generating revenue to support future tax reductions.

“People living and working in Sint Maarten contribute faithfully through their wage taxes,” she said. “At the same time, individuals living abroad benefit from dividends earned by companies operating here—companies powered by the hard work of our people—yet they don’t always pay their fair share. This measure is meant to correct that imbalance.”

Impact on Local and Foreign Shareholders

One of the key concerns raised by Members of Parliament was the potential impact of the DWT on local businesses and residents. Minister Gumbs clarified that local shareholders are already required to pay taxes on dividends under the current system. The DWT ensures that this tax is collected upfront and credited against the taxpayer's income tax liability.

“For local taxpayers, this amount will simply be credited in their income tax filings, similar to how wage tax withheld by employers is treated,” she explained. “This approach increases compliance and fairness without creating any new burden for local taxpayers.”

The Minister also highlighted the challenges of collecting taxes from foreign shareholders, who often have limited ties to Sint Maarten and may leave the jurisdiction shortly after receiving dividends. By implementing withholding at the source, the government secures revenue upfront and significantly improves compliance.

Stakeholder Consultations and Public Outreach

Addressing concerns about the lack of consultation, Minister Gumbs noted that stakeholders were engaged during the tax reform process in 2022. However, she acknowledged that more could have been done to communicate the details of the DWT to the public.

“I acknowledge that raising the issue on the floor of Parliament may not have been the most ideal approach,” she said. “However, we learn and grow from experience, and I remain committed to transparency and improved communication moving forward.”

The Minister also announced plans for public outreach initiatives, including the distribution of brochures, explanatory videos, and town hall sessions, to ensure that the population and business sector are well-informed about the DWT.

A Step Towards Fairness and Sustainability

In closing, Minister Gumbs reiterated that the DWT is a step towards creating a fairer and more sustainable tax system in Sint Maarten. By ensuring that all who benefit from the country’s economy contribute their fair share, the government can generate the revenue needed to support critical projects and reduce the tax burden on residents.

“This is not about adding a new burden on locals; it’s about ensuring fairness and equity in our tax system,” she said. “It is time for action, not just discussion. If someone is benefiting from the profits generated in Sint Maarten, it is only fair that they also contribute to Sint Maarten.”

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PHILIPSBURG:---The connectivity landscape in St. Maarten is on the cusp of a transformation. On May 6, 2025, the Ministry of Tourism, Economic Affairs, Transport and Telecommunications (TEATT) granted Starlink SXM B.V. an official license to operate throughout the country. This landmark decision allows Starlink, under the leadership of SpaceX, to provide broadband internet access across terrestrial, maritime, and aviation zones. With this authorization, residents, businesses, and even travelers in the region are poised to reap the benefits of a more connected future.

What the Starlink License Covers

The legal authorization issued by TEATT is governed under the National Decree on Radio-Electrical Installations, filling temporary gaps in local telecommunications legislation. The license is valid for five years and represents a significant step forward for the nation's digital infrastructure. Starlink’s service uses a cutting-edge Low Earth Orbit (LEO) satellite constellation to deliver stable and high-speed internet access.

Until now, many St. Maarten residents who were interested in Starlink hesitated to adopt the service due to its unclear legal status. With this decree, that uncertainty is resolved, unlocking new opportunities for individuals and businesses alike.

To date, many residents have already reported strong satisfaction with Starlink’s offerings. Appreciated for its high reliability and consistent performance, Starlink has quickly gained a reputation for being a stable alternative to traditional internet providers.

Cost and Setup Details

Starlink’s monthly subscription fee is set at approximately $80, alongside a one-time equipment setup cost of $700. This pricing structure makes it accessible to a broad demographic, offering a robust solution to internet connectivity wherever traditional options may falter. Various private local providers are already actively advertising Starlink’s availability, which could help more users make the switch.

A Competitive Shake-Up for Local Telecom Providers

The introduction of Starlink services brings a new level of competition to St. Maarten's telecommunications market. Local providers, TelEm and Flow, long-standing players in the region, will need to adapt to maintain customer loyalty and market share.

For years, these companies have served the region’s communication needs, but Starlink offers a distinct edge due to the scalability and stability of its satellite-based network. With services extending across ground, sea, and air, Starlink introduces an unparalleled level of flexibility.

St. Maarten could soon witness significant shifts in customer preferences, especially in remote or underserved areas where traditional networks struggle to provide consistent coverage.

Regulatory Safeguards Ensure Compliance

Starlink’s operations in St. Maarten come with a detailed set of regulatory requirements. The Bureau Telecommunications and Post (BTP), which negotiated the agreement on behalf of the government, will closely monitor adherence to these conditions.

Key Compliance Points:

• Adherence to International Standards: All Starlink equipment and operations must comply with guidelines set by the International Telecommunication Union (ITU), CEPT, and ICNIRP. Importantly, only certified, technically qualified personnel are permitted to manage installations.
• Interference Prevention: Starlink must ensure its services do not disrupt other communication networks. If issues arise, the Bureau has the authority to issue corrective instructions, with the associated costs borne by Starlink.
• Prohibition on Unauthorized Resales: The license explicitly prohibits Starlink from offering government-mandated services or facilitating unauthorized reselling of its internet access. Cooperation with local authorities to mitigate violations remains paramount.
• Corporate Safeguards: To preserve regulatory oversight, the company cannot undergo a transfer of ownership or change in control without prior written approval from the Minister.

Gaps in Current Legislation

While this license marks a groundbreaking moment in St. Maarten's technological landscape, it also highlights existing gaps in the local legal framework around satellite internet services. Presently, the National Ordinance on Telecommunications Facilities does not fully address LEO satellite operations.

The license issued to Starlink is thus seen as a stopgap measure, paving the way for more robust and permanent regulations in the future. Policymakers will need to act swiftly to ensure the region maximizes the potential of satellite-based internet technologies while maintaining effective oversight.

Implications for Businesses, Residents, and Travelers

• For residents, the legalization of Starlink means better access to reliable, high-speed internet, even in areas previously underserved by traditional providers. With its consistent connectivity, Starlink may play a vital role in bridging digital divides within the community.
• Businesses
• Businesses stand to gain significantly as well. Reliable internet is a lifeline for companies looking to scale operations, support remote work, or expand into e-commerce. Additionally, Starlink’s ability to provide connectivity during adverse weather or natural disasters makes it an invaluable tool for business continuity planning.
• Travelers and Maritime Operations

St. Maarten’s economic reliance on tourism cannot be overstated, and Starlink provides a way to improve connectivity for visitors in remote areas or aboard yachts and cruise ships. This also holds true for airlines operating in the region, where aerial internet connectivity can become a unique selling point.

The Road Ahead

With Starlink now officially authorized in St. Maarten, the nation has positioned itself at the forefront of satellite-driven internet innovation. Notably, this extends to Saint Martin’s, ensuring even maritime travelers and businesses can enjoy reliable connectivity.

However, this is only the beginning. As St. Maarten continues its digital transformation, collaboration between government authorities, private companies, and consumers will be essential to ensure sustainable growth in the connectivity sector.

Starlink’s arrival is not just about faster internet—it’s about opening new economic opportunities, improving quality of life, and putting St. Maarten on the map as a forward-thinking, tech-driven nation. Whether you’re a resident, business owner, or visitor, the future of connectivity in St. Maarten looks brighter than ever.