Markets in Financial Instruments Directive MiFID is an EU directive which provides a harmonized regulatory regime for investment services for all members of the European Economic Area and which became effective on 1 November 2007. MiFID’s objectives are to increase competition – and thus to make the price of corporate finance deals more competitive –… Continue reading MiFID: WILL IT AFFECT THE DUTCH CARIBBEAN?

High versus lower ranking debt A corporate take-over can be financed with debt and/or equity. For example, the current management of a company (the target) could incorporate a corporate vehicle (Newco) to acquire the shares of the target, while Newco is financed by banks or other lending institutions. Banks are typically senior debt holders, meaning… Continue reading JUNIOR VERSUS SENIOR DEBT IN THE DUTCH CARIBBEAN

No specific law about advertising In the Netherlands Antilles there is no specific law relating to advertising or promoting on-line gambling/gaming; subsequently there are no restrictions on advertising and promoting these games to Netherlands Antilles citizens or citizens of other nations. Please note that the “Ordinance on agreements concluded electronically” (’Landsverordening overeenkomsten langs elektronische weg’), which became… Continue reading PROMOTING GAMBLING AND GAMING FROM THE DUTCH CARIBBEAN

A remedy against extraordinary events Upon the occurrence of certain extraordinary events, such as war, or immediate danger of war, or a revolution, a transfer of seat of a company is possible to other parts of the Kingdom, i.e., the Netherlands and Aruba (Act on Voluntary Transfer of Seat; ‘Rijkswet vrijwillige zetelverplaatsing van rechtspersonen’). The… Continue reading TRANSFER OF STATUTORY SEAT WITHIN THE KINGDOM OF THE NETHERLANDS

150 + 75 members seems too much The Dutch House of Representatives or Lower House (‘Tweede Kamer’) has 150 members (MPs). Members of the Lower House receive an allowance for expenses for their work. This is called a compensation. The amount of the compensation is € 83,398.32 per MP per year. They also receive a holiday… Continue reading HOW MANY POLITICIANS DO WE NEED IN THE NETHERLANDS PARLIAMENT?

It’s not merely a mailbox According to the OECD (Organization for Economic Co-operation and Development), a tax haven (or offshore jurisdiction) is a jurisdiction that actively makes itself available for the avoidance of taxes which would otherwise be paid in a higher tax jurisdiction. There are more advanced and less advanced offshore jurisdictions. The concessions and benefits… Continue reading DUTCH MAILBOX COMPANIES

The lessee is protected (in principle) As a general principle, the rights of a lessee must be protected in the event leased property is sold. Therefore, according to Dutch Caribbean law, in the event of the sale of a leased property, either a regular sale or a foreclosure sale, the (material) obligations in any lease agreement with… Continue reading SELLING LEASED PROPERTY IN THE NETHERLANDS ANTILLES

Common practice It is common practice around the world for (dealing rooms of) banks and brokers to tape conversations with their clients in order to avoid misunderstandings as to the selling or buying instructions given by the clients. There are no specific laws or regulations in the Netherlands Antilles applicable to this aspect of telephone taping.… Continue reading TELEPHONE TAPING BY BANKS IN THE DUTCH CARIBBEAN

A license is required One or more Netherlands Antilles legal entities or companies (offshore companies) are inserted in many international group structures. This is mainly done for tax purposes. Another reason for using a Netherlands Antilles company may be to have a company with a seat in a respected jurisdiction with a well functioning legal… Continue reading TRUST COMPANIES IN THE DUTCH CARIBBEAN

Permanent establishment creates a taxable presence Foreign companies wishing to promote their products in Aruba may ask the question whether marketing activities result in taxable activities in Aruba. In Aruba the profit tax law applies the concept of a permanent establishment that creates a taxable presence without providing a definition. In practice it is understood that the… Continue reading MARKETING EFFORTS BY FOREIGN COMPANIES IN ARUBA AND TAX CONSEQUENCES