At the end of January 2019, the "Code of Conduct Group" of the Council of the European Union has unfortunately found, as part of the assessment of the measures taken by Curaçao to meet its commitment to abolish the preferential tax regimes before the end of 2018, the introduction of the exemption for foreign source income to be harmful. The exemption for foreign source income was assessed by the Code of Conduct Group at its meeting of 29 January 2019 based on a number of criteria. The conclusion is that this exemption has comparable harmful effects as the preferential tax regimes that have recently been abolished.
On the 20th of December 2018, the draft National Ordinance Tax Review 2018 ("National Ordinance") was adopted by the Parliament of Curaçao.
The National Ordinance elaborates on the legislative amendments adopted in June 2018 in which the tax regimes are aligned with international standards as recommended by the Organization of Economic Cooperationand Development (the"OECD"). Please refer to our website where you can find our 2018 publications on these subjects.
As usual we will publish the 2019 tax law books for the jurisdictions Sint Maarten, Curaçao, Aruba, The Caribbean Netherlands and Suriname. Kindly place your order no later than February 28, 2019 with our colleague Brigitte Douglas at douglas. brigitte@dctaxlegal. com.
Keep an eye on our website for more updates.
On September 28, 2018 a ministerial regulation amending the Ministerial Regulation on formal tax law was published.
On November 14, 2018 the Instruction regarding the levy of Turnover Tax (“TOT”) for the execution of large construction projects has been published.
In this Tax Alert we will discuss the National Ordinance on reparation of preferential tax regimes that was approved by the Parliament of Curaçao on June 28, 2018.