How will the taxed fringe benefit free housing for free housing be calculated?

  • Modified on: Fri, 27 Oct, 2023 at 4:54 PM

For Curacao applies:

This taxed fringe benefit will be applied when the employer makes free accommodation available for the employee as a principal residence. There are two possibilities; this can be a rented or bought dwelling.

In case of a bought dwelling, the rental value of the house will be considered to be wages for the employee. For this rule, the rental value of the house will be set to 4.8% of the value in the daily course of business, which is understood to mean the open market value.

In case of a rented dwelling, the annual taxed fringe benefit for free housing will be based on 4.8% of 144 times the rent per month. That amounts to 57.6% of the rent amount. This regulation may only be applied if the rent contract is in the name of the employer and the employer pays the rent directly to the landlord. This taxed fringe benefit might also be calculated based on 120 times the monthly rent instead of 144 times. That amounts to 48% of the rent amount. It is advisable to ask for a ruling by the Tax Authorities and request that in your case the taxed fringe benefit be based on 120 times the monthly rent. Without an approved ruling the 48% taxed benefit should not be applied. Celery cannot be held responsible for any assessments as a result of (incorrect) use of this wage code.

For Sint Maarten the taxed fringe benefit free housing has to be calculated as follows:

  • At a rent to USD 1,250 p/m : 100 * monthly rent * 4.8%;
  • Rent of USD 1,250 to USD 2,000 p/m: 120 * monthly rent * 4.8%;
  • Rent USD 2,000 p/m and higher: 140 * monthly rent * 4.8%.

The above is equivalent to the following percentages of the monthly rent:

  • At a rent to ANG 2250 p/m: 40% of rent per month
  • Rent of ANG 2250 to ANG 3600 p/m: 48% of rent per month
  • Rent ANG 3,600 p/m and above: 56% of rent per month

For the calculation applicable on Aruba we refer to the law attached, article 4 paragraph 1 to 5.

The BES Tax Authorities have confirmed that on the BES islands the full rent has to be processed as taxed fringe benefit. 

For BVI applies:

When the employer pays for the employee's housing, the amount of the rent must be included as Taxed fringe benefit paid/free housing.

If the employee lives in a house belonging to the employer, the value of the benefit is fifteen (15%) of the basic salary or wage and this 15% must be taxed as Taxed fringe benefit paid/free housing. This 15% addition applies from the period that the wage code is activated, and then also 15% on the wage from that period and the coming periods up to and including December.

This 15% must be calculated over the total gross salary, but not over the taxed fringe benefits. So, it is not based on the total taxable salary, but the total gross salary. So, the 15% is based on overtime and bonuses, but for example not on the taxed fringe benefit for a company car.

For British Guyana applies: 


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