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LAWYERS // TAX ATTORNEYS // ARUBA – BONAIRE – CURAÇAO – ST. MAARTEN

THE ARUBA TAX EXEMPT COMPANY

Changes per 1st January 2006

Up to January 1, 2006 an Aruba Tax Exempt company had only a few limitations in what activities the company wanted to contemplate.

However, as of January 1, 2006 the Aruba government has changed the law under pressure of the OECD and the EU. The Aruba Exempt Company is now treated as any normal company which means that it has to prepare annual accounts and provide information to the Aruba tax authorities when asked. It is, however, still possible to be exempt from both the profit tax and the dividend withholding tax if the activities are limited to the following:

1. to hold shares or other certificates of participation (foreign participations must be subject to profit tax at a rate of at least half the Aruba tax rate);
2. to finance other enterprises or companies whether or not within the same group of companies;
3. to invest equity, but not in real property, and
4. to give licenses on the use of intellectual and industrial and similar rights under the Aruba law or under the law of other jurisdictions.

Karel Frielink
Attorney (lawyer) / Partner