Payroll Tax Reforms - July 2025
Suriname introduces payroll tax reforms effective July 22, 2025
The government of Suriname, under the leadership of President Jennifer Simons, has implemented significant amendments to the wage tax legislation. These reforms are aimed at strengthening purchasing power by reducing the tax burden on overtime compensation, vacation pay, and housing-related deductions.
Vacation pay and bonuses
The tax-exempt threshold for annual vacation allowances, bonuses, and gratuities has been increased from SRD 10.016 to SRD 19.500. This adjustment is intended to allow employees to retain a greater portion of these periodic benefits.
Overtime – revised tax rate structure as of July 1
A new progressive tax rate system applies to overtime compensation:
• Up to SRD 2.500: 5%
• SRD 2.500 to SRD 7.500: 15%
• Above SRD 7.500: 25%
This structure ensures that moderate levels of overtime are taxed more favorably, offering relief to employees who regularly work extra hours.
Housing and mortgage deductions
The maximum deductible interest on mortgage has been raised from SRD 600.000 to SRD 871.500. This measure supports homeowners by increasing the deductible amount, thereby reducing the taxable base for qualifying individuals.
These legislative changes are part of a broader fiscal reform agenda and are effective immediately.
If you would like to assess the impact of these changes on your payroll administration or tax obligations, we are here to assist.
Our Tax Experts can guide you through the necessary updates and help you optimize your compliance processes. Please feel free to contact us for a consultation!
