Dear customer,

In our newsletter of May 13, 2020, we informed you about the recently implemented tax support measures by the Minister of Finance. One of these measures is to increase the tax credit from SRD 125 to SRD 750 per month, for the time being for six (6) months. A question that is frequently asked is whether the increase in the tax credit can be applied from the month of May 2020 without the law having been amended.

We believe that the increase of the tax credit from SRD 125 to SRD 750 per month per employee or natural person may be applied from the month of May 2020, despite the fact that no changes to the tax laws have been published yet. The question is also whether this measure requires an amendment to the relevant tax laws or whether the increase in the tax credit falls within the scope of the COVID-19 Exception Status Act.

Without going further into the legal implications of the questions posed here, we recommend applying the increased tax credit of SRD 750 per month from May 2020. This is because the announcement of the Minister has already created confidence in law. Taxpayers may therefore rely on the announcement and apply the tax credit from the month of May 2020.

If you have any questions about this subject, please do not hesitate to contact us. We are happy to serve you.