Financial Security Strategies for Business Owners in a Shifting Economy
- Xcel Management Consultancy
- Jul 18
- 5 min read
Updated: Jul 21
On June 30, Xcel Management Consultancy hosted its second Knowledge Exchange Series (KES) event — an evening designed to empower entrepreneurs and business owners with strategic insights to strengthen their operations and long-term planning.
The evening’s theme, "Business: Navigating Local Challenges", featured the topic:"Building Better Security in a Shifting Economy." The session focused on providing business owners with alternative financial strategies to supplement public pension income at retirement — an issue becoming increasingly relevant in today’s uncertain climate.
The small crowd of attendees consisted of quality business owners that attended the event. The momentum from participants interaction was great given the enthusiasm and thirst for knowledge on the topics presented.
Xcel's Presentation
The evening began with a presentation by Xcel Management Consultancy, outlining the company’s mission, vision, and core services for SMEs and entrepreneurs. The presentation briefly highlighted the importance of early retirement planning, especially for sole proprietors who are often excluded from formal pension structures.
Keynote by Vidanova Life
Following, the brief presentation by Xcel Management Consultancy, the main speaker for the evening, Jewel—Ann Melendez, Head of Vidanova Life Insurances was then introduced. Ms. J. Melendez gave an enthusiastic 40-minute presentation based
on the evening’s business topic and theme, indulging the crowd with the image on the left that conveys what most entrepreneurs and business do well into their senior years without much thought of planning for retirement later. Ms. Melendez highlighted that, if a pensioner spent their years from 15 — 65 residing on St. Maarten, they would receive a maximum pension of XCG1,398 per month from SZV public pension fund [based on a 2025 benchmark that is subject to change]. Let’s say, as a pensioner, you earn an annual income of XCG16,776. With an expected rate of inflation of 2% over the next 5 years, your actual earnings are worth XCG16,447 per year. In addition, as a pensioner your AOV income is still subject to AVBZ tax levies that further reduces your spending capacity. When one considers the cost of day to day living expenses, your actual spending power is way less than what you would have realized. On another note, lets say for example, you would have spent an average of 15 years living outside of any of the Dutch territories, then for each year you spend abroad, you would receive 2% less than the maximum pension amount making your spending power is less.
The options offered by Vidanova Life, highlighted two scenarios by which one can supplement their retirement planning income. The first option, is that for employees
including persons who own their own NV or BV. The second option is that of the Vidanova Life Insurance offered to sole proprietors. The Vidanova Life Insurance is offered in the form of a targeted annuity insurance that is based on your saved capital paid monthly or yearly and replaces the lack of remuneration availability not offered
through SZV public pension.
The AOV — Combi, also offered by Vidanova Life, is a financial planning tool in the event that a person becomes incapacitated to work and is especially designed for sole proprietors and entrepreneurs as well as directors with a salary that is above the SZV limit. The AOV — Combi can also be combined with other products such as the targeted annuity insurance for sole proprietors and pension retirement planning for employees and persons who own their own NV or BV.
While the theme and topic for the evening was aimed at a business-oriented audience, Vidanova Life also has other products ideally suited for individuals that include Capital Insurance and Sparmas ideal for personal long—term savings goals.
PCMI NV – Legal & Tax Insights
The final presentation was delivered by Mr. R. Budike of PCMI NV, who offered insights on taxation within a legal framework. Drawing on a background in finance and tax law, the session prompted a lively Q&A segment where attendees were able to gain insights into common misconceptions and best practices around business tax filings starting with Turnover Tax [TOT] filings.
Mr. Budike highlighted that one of the common errors made by SME’s, as he has encountered, is that they often deduct costs before calculating TOT, leading to an understatement of TOT tax levies. When SME’s submit understated TOT tax levies, this is corrected by means of an audit by the tax inspectorate after submission. Following the audit, the SME is then most likely issued a fine for incorrect or understated TOT tax filings. There are some exceptions, for example, in the case of construction companies; many construction companies on the island, receive funds from customers for the purchase of materials on the customers behalf; these funds do not form part of the company’s turnover. In such cases, the company is merely acting as an intermediary. The SME must bear in mind that keeping proper records are essential to reflect this distinction. The presenter pointed out that it is best practice to keep these administrative records for at least 10 years — preferably 15 years in the event of fraud investigation.
Another lively Q&A with PCMI, was the issue of individuals earning wages via cross-border labour. Persons in this category are often issued large assessments sums by the tax office. This happens in instances where a French national residing on Dutch St. Maarten earns wages from labour he or she carries out on French St. Martín. It is often the case that, in these situations, the individual may not be aware that there is jurisprudence — or case law — that allows for these assessments sums to be lowered. In reference to matters of jurisprudence each case is unique. In addition, certain matters regarding the legal aspect of taxes may not always be apparent outside administrative procedures and tax submittals. If in doubt, in such cases, it is advisable to consult with your accountant or tax advisor. Drawing on a background in finance and tax law, Mr. Budike has 33 years of experience in the field, starting in the Netherlands and also drawing from his experience on St. Maarten. Mr. Budike has, on certain matters of jurisprudence, acted in a representative capacity on behalf of his clients before a Court of First Instance.
Other important points of note mentioned during the presentation by PCMI:
In the case of proper record keeping hurricanes cannot be an excuse to justify missing documentation. It is important, in our modern era for SME’s to make use of available online tools such as cloud-based solutions as backup for business administrative records. In case of missing documentation, the auditor can place the burden of proof on your company where you have to prove, beyond the shadow of a doubt, that your administration is processed according to the law — which at times can be cumbersome.
If you file taxes and fail to pay the tax levies, you run the risk of being fined. Mr. Budike also hinted on the fact that companies also tend to submit payment for monthly tax filings without submitting the necessary declarations, which is also a fineable offense. Fines increase incrementally according to the number of unmet obligations not fulfilled by your company.
Always remember that monthly filings are due on the 15th of each month. If the 15th occurs on a weekend or holiday, taxes are due the very next business day.
Community, Connections & Takeaways
The entire evening was filled with enthusiasm by both attendees and presenters as both took advantage of the situation to meet and greet fellow business persons and prospects. Also a huge shout out and “Thank You” to the folks at Carls & Son’s Cole Bay for helping to make the event a great evening!
To obtain a copy of the presentation, please feel free to download it copy here:
