Salary subsidy for employment retention - January 2021 application
Tax Newsflash Aruba
The Social Insurance Bank of Aruba (hereinafter: SVB) issued a notification regarding the start of the salary subsidy application process for the month of January 2021. In this newsflash we will provide you with an update on the process of this salary subsidy application.
The application period for the salary subsidy for the month of Janaury 2021 starts 20 January 2021 as of 9:00 AM and ends on 27 January 2021, end-of day 11:59 PM (Aruba time).
SVB indicates that it will not accept any applications after the application deadline. It is important that the employer has paid all social premiums AOV/AWW, AZV, pension premiums, wage tax and premiums sickness and accident insurance of the month of December 2020. The application and application form must be completed and uploaded correctly on the digital portal MiSVb of the employer. Please note that after submitting the salary subsidy application, changes are no longer possible
An employee may authorize someone else to sign on his or her behalf. If this is the case, the employee needs to authorize this person with an authorization letter signed by the employee and the authorized representative. In addition, the employee must attach a copy of the identification of the employee and authorized representative to the authorization letter. This authorization letter needs to be kept on file by the employer. Do not send the authorization letter to SVB. Behind the signature of the authorized representative the employee must note ‘Authorized’.
Payment of subsidy
SVB indicates that the advance for the salary subsidy of January 2021 will be transferred to the bank account of the employer registered at SVB as soon as the application is approved by SVB. SVB indicates that the employer will receive an email notification when the transfer is made. It is important for the employer to ensure that all its bank information and details are up to date and accurately registered at SVB to avoid any issues or delays when transferring the advance for the salary subsidy of January 2021.
Turnover tax compliance
The employer is reminded of the fact that it is required to file its turnover tax return. The turnover tax return must be completed and filed correctly to avoid any differences when calculating the decline in turnover. In case it turns out that no turnover tax return was filed for the month that the employer received salary subsidy, SVb will reclaim the full amount of the salary subsidy for the corresponding month.
We trust that you will find this newsflash helpful. Let us know if you have questions and if you would like further information.