Knowledge base
How is wage tax calculated in Suriname?
Annual tax brackets
In Suriname, wage tax is levied based on the rates in the table below, which apply to a period of one year. The tax rates are divided into four brackets: 8%, 18%, 28% and 38% respectively. The tax-free allowance for an annual pay period is SRD 108,000.
| Taxable wage (SRD) | Tax rate |
|---|---|
| Up to and including 42,000 | 8% |
| Above 42,000 up to and including 84,000 | 18% |
| Above 84,000 up to and including 126,000 | 28% |
| Above 126,000 | 38% |
Monthly tax brackets
To calculate the tax rates for a month, the annual brackets can be divided by 12. The tax-free allowance for a monthly pay period is SRD 9,000.
| Taxable wage (SRD) | Tax rate |
|---|---|
| Up to and including 3,500 | 8% |
| Above 3,500 up to and including 7,000 | 18% |
| Above 7,000 up to and including 10,500 | 28% |
| Above 10,500 | 38% |
Example calculation
To illustrate how tax is calculated in Suriname, let’s work through an example. We start from a gross wage of SRD 20,000.00. First, a flat-rate deduction of 4% is taken off this amount, up to a maximum of SRD 400.00. In this case the flat-rate amount is:
Flat-rate amount = 20,000 × 4% = 800
Since this is more than SRD 400, SRD 400 is deducted.
Taxable amount after flat-rate deduction = 20,000 − 400 = 19,600
Next, an amount of SRD 16.67 is added as the “medical provision addition”. Not all payroll packages include this amount in their calculations, so small differences in the final tax calculation can come from whether or not it is included. In this case, the taxable wage is therefore SRD 19,616.67.
Taxable amount after addition = 19,600 + 16.67 = 19,616.67
Before the tax can be calculated with the tax brackets, the tax-free allowance is deducted first.
Tax-free allowance deducted = 19,616.67 − 9,000 = 10,616.67
How the taxable wage is split across the brackets
| Lower limit | Upper limit | Rate | Bracket width | Remaining amount | Tax per bracket | |
|---|---|---|---|---|---|---|
| Bracket 1 | 0.00 | 3,500.00 | 8.00% | 3,500.00 | SRD 7,116.67 | SRD 280.00 |
| Bracket 2 | 3,500.00 | 7,000.00 | 18.00% | 3,500.00 | SRD 3,616.67 | SRD 630.00 |
| Bracket 3 | 7,000.00 | 10,500.00 | 28.00% | 3,500.00 | SRD 116.67 | SRD 980.00 |
| Bracket 4 | 10,500.00 | ∞ | 38.00% | SRD 116.67 | SRD 44.33 | |
| Total tax | SRD 1,934.33 | |||||
* The rate is applied to the orange amount in the same row of the table.