Tax alternatives and/or incentives for offshore companies
Tax Newsflash Curaçao
In the past, Curaçao applied the so-called offshore regime, which was abolished on January 1st, 2002. The offshore regime is applicable up to the year 2019 for companies existing before January 1st, 2002. As of this date, no new companies can apply for this favorable regime.
Under the offshore regime a low profit tax rate of
2.4% - 3% was applicable.
As of the year 2020, offshore companies will in principle be subject to the onshore profit tax regime. According to this regime, a profit tax rate of 22% (2018) is applicable. However, an (effective) lower profit tax rate may apply depending on the activities performed by the entity.
On June 28, 2018, the proposal on the so-called “Remediation of the Curaçao Preferential Tax Regimes” was approved. This entails that offshore companies may opt for one of these regimes as an alternative to the offshore tax regime. These regimes or alternatives are:
Fiscally Transparent Entities;;
Curaçao Investment Institution;
Special Purpose Vehicle (in Dutch “doelvermogen”);
Curaçao Innovation Box;
Economic Zone (E-zone) Company; and
Exemption for foreign source income.
Hereinafter, we will outlines the aforementioned alternatives.
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