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End of the year amendments
Aruba: Update tax matters
We send you this newsflash to inform you about several of the eye-catching legislative amendments implemented in Aruban tax law recently.
Additional senior allowance
Taxpayers aged 60 years or older at the start of the calendar year are entitled to an additional, AWG 3,500 allowance. This additional allowance applies if the total gross income does not exceed AWG 35,000 per year.
This regulation entered into force on November 21, 2014, with retroactive effect through January 1, 2013.
Currently, the mortgage interest on privately owned homes serving as the main residence is deductible for an unlimited amount. As from January 1, 2015 the deductible mortgage interest of privately owned homes serving as the main residence, will be capped at AWG 50,000 per year.
International exchange of information between Aruba and third countries will be simplified.
The records of limited partnerships (“commanditaire vennootschappen”) must include a register stating the names and addresses of their limited partners.
Foundations, whether private or otherwise, must include a register with the names and addresses
of their beneficiaries.
This regulation entered into force on November 21, 2014.
Abolishment special rates
Redemption of pension rights and termination benefits were subject to a special rate of 15 percent.
The special rate regarding the redemption of pension rights was abolished on December 31, 2013. The applicable rate is 25% as from January 1, 2014.
The special rate regarding the termination benefits will be abolished on December 31, 2014. The applicable rate will be 25% as from January 1, 2015.
These special rates were introduced through beneficial policy and while they have been discussed, they have not been formalized.
This is a general newsflash. No rights whatsoever may be derived from this. Should you still have specific questions or remarks, then you can of course always contact our office.