As part of the Kingdom of the Netherlands, Curaçao is a party to a federal tax agreement with the Netherlands. The Dutch tax authorities recently published the outlines of a new tax arrangement in order to avoid double taxation between the two countries. This update summarises the agreement's main amendments.
Changes to the tax legislation were recently announced. These include a long overdue reduction of the profit tax rate from 34.5% to 27.5%, amendment of the participation exemption and the taxation of foreign profits through a permanent establishment, and the introduction of the right of a private foundation to choose the be taxed.