Government extends standard income tax payment plans to 24 months

GREAT BAY--Promise kept. The Minister of Finance Marinka Gumbs has approved a temporary policy change that allows most taxpayers with assessed income tax debts to enter a standard 24-month payment plan, without having to complete a financial means test.

The measure has been officially published and will remain in place up to December 31, 2026. This measure opens am immediate window for people with income tax debts to make straight forward, simplified arrangements for 24 months. Those persons have until December 31, 2026 to take advantage of this arrangement.

In July 2025, Minister of Finance Marinka Gumbs announced that her ministry was actively reviewing the current 9-month tax arrears policy, while considering introducing a more realistic and flexible payment plan for taxpayers.

“Even the current 9-month payment plan is not sufficient for many individuals and businesses,” Minister Gumbs said, acknowledging growing concerns from taxpayers during her monthly Finance Fridays sessions. “I’m exploring the possibility of extending that term to 24 months, similar to what’s already in place in Curaçao," she said in July.

St. Maarten’s tax collection office (the Receiver), has typically applied a maximum payment plan of about nine months in many cases. Under this new decision, new payment plans for assessed income tax will use a 24-month standard term, automatically offered, and without requiring taxpayers to submit the DB 35 means-test form.

DB 35 is the means test form the Tax Receiver uses to check whether someone really has the financial capacity to pay, before approving a longer or more flexible payment plan.

In plain terms, it is a form where you list and prove things like:

•your income (salary, pension, business income),

•your regular expenses (rent or mortgage, utilities, food, loans),

•your assets (bank balances, property, vehicles),

•your debts and other obligations.

They use it to calculate your ability to pay and decide what monthly amount and term are realistic. Under the new policy, this will no longer be necesarry.

Why the change is being made

The Ministry of Finance points to several realities affecting households and tax collection:

• The cost of living has increased in recent years, including pressures linked to utility developments and broader economic strain.

• Many residents are still dealing with the financial fallout from Hurricane Irma and the COVID-19 pandemic, including disruption that contributed to unexpected household burdens, including GEBE.

• St. Maarten’s annual tax process is backlogged, which can result in people receiving multiple tax assessments in a single year, creating payment demands that are difficult to meet within short timelines.

• While larger reforms are being developed, including a new fiscal IT system and broader tax administration reform, the government considers it important to offer realistic payment arrangements now, reducing hardship and stress linked to enforcement actions such as reminders, attachments, and auctions.

Who qualifies

This temporary 24-month payment plan applies only to income tax debts under these conditions:

1. The income tax assessment must already be issued by the Tax Inspector.

2. The extended term does not apply to wage tax and other withholding style taxes.

3. The 24-month term will be offered automatically by the Receiver to individual taxpayers for qualifying assessed income tax debts.

4. Choosing to use, not use, or stop using the extended term does not affect the collection of other tax assessments owed by the same taxpayer.

What does not change

The Ministry notes that the Receiver remains responsible for collecting overdue taxes and cannot forgive or reduce tax debts. This decision is about making payment arrangements more practical while the tax system is being stabilized and modernized.

Next steps for taxpayers

Taxpayers who receive an offer from the Receiver for an assessed income tax debt can review the terms and decide whether to use the extended payment plan. Those with questions are encouraged to contact the Receiver or the Tax Department directly for guidance based on their individual situation.

At first, and by law, everyone had two months to pay outstanding taxes after being assessed by the tax office and going through the process. This period was extended to nine months some time ago, but even this proved challenging for those with heavy arrears. As such, the Minister prefered to consider a longer, more realistic term.

Minister Gumbs emphasized that while timely tax compliance is critical for government operations, there must also be compassion and room for flexibility in payment terms. She said it isn’t about evading responsibility, rather creating a realistic and responsible pathway for people to meet their obligations without falling into deeper hardship.

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