The Social and Economic Council (SER) of Curaçao issued last Tuesday, March 26, an advisory report to the Minister of Finance Mr. drs. Javier Silvania on some tax reforms, including a reduction in the profit tax rate.
With the agreement of the Parliament of Curaçao, the Minister intends to apply a reduced profit tax rate of 15% on the first NAf. 500,000 of the taxable amounts from domestic enterprises to be introduced in the National Ordinance on Profits Tax with retroactive effect to January 1, 2023, while a rate of 22% will continue to apply to income above that.
Furthermore, the amendment to the National Ordinance on Economic Zones seeks to remove the restriction that prohibits companies in these zones from supplying more than 25% of their sales to the local market, to promote integration with the local economy.
These measures, part of a broader package of tax reforms, are intended to stimulate the local economy and provide support to small and start-up businesses.
The SER’s opinion, which assessed the proposed changes for consistency, efficiency, effectiveness, and socioeconomic impact, is an important step in the parliamentary consideration of the draft national ordinance that has yet to formally ratify the changes.
SER in latest advisory report: Critical perspective on fiscal reforms
