Legislative Amendments 2019
Tax Newsflash Curacao
Due to the financial situation of the country, the Government is forced to provide, in anticipation of a more integral tax revision, temporary income-increasing measures to achieve a balanced budget for the year 2019 and therewith more healthy public finances.
For that reason, the Government of Curaçao has adopted a number of tax measures that should provide the desired additional revenue.
The general sales tax rate of 6% on importation is increased to 9% and the exemption from sales tax on importation for trade goods is withdrawn. Furthermore, the possibility of offsetting the general sales tax paid on import of trade goods is limited to 50%, instead of 100%, to provide the necessary additional income in the short term.
In addition, a declaration obligation is implemented in the Property Tax for immovable property that was not yet known to the Tax Authorities, the use of the tax incentives legislation is linked to the tax behavior of the applicant, the waste disposal charges for both individuals and companies is increased and the excise duty rates on spirits, wine, beer and cigarettes will also increase. Below we will elaborate on the above mentioned legislative changes.
The national ordinance will come into force on the day following the date of publication. However, it is expected that this national ordinance will enter into force at the beginning of September 2019.
Updated on: September 2nd, 2019