THE NETHERLANDS ANTILLES TAX-EXEMPTED PRIVATE LIMITED LIABILITY COMPANY
Certain limitations apply
Under certain conditions it is possible to obtain a tax-exempt status for a Netherlands Antilles private limited liability company (‘BV‘). As a consequence of this status, such a BV will not be subject to Netherlands Antilles corporate income tax.
To obtain such status the following criteria will have to be met:
1. Request for the tax-exempt status should be filed with the tax inspector.
2. The Board of Managing Directors of the BV should maintain a register with the names and addresses of all ultimate beneficiaries, who hold an interest of more than 10% in the BV.
3. The Board of Managing Directors may consist only of individuals residing in the Netherlands Antilles or certified trust companies residing in the Netherlands Antilles or their directors and employees.
4. The Board of Managing Directors shall annually prepare financial statements which are audited and approved by an independent expert within 12 months after the end of the book year.
5. The purpose of the BV and its actual activities consist exclusively or nearly exclusively of:
a. providing credit and/or
b. investment in securities and deposits.
6. The BV is not a bank or other financial institution subjected to the supervision of the Bank of the Netherlands Antilles.
On September 9, 2004 the tax authorities announced an anti-misuse rule. The exempt status will be revoked if the company’s profit exists for more than 5% of its profits out of dividends from companies that themselves are not subject to a profit tax at a rate of at least 15%.
Karel Frielink
Attorney (lawyer) / Partner
