Aruba: Domestic Corporate Taxation
The Business Turnover Tax (Belasting op Bedrijfsomzetten, or BBO) is an indirect tax, introduced as of January 2007. BBO is levied on the operating revenues realized by entrepeneurs within the framework of their business or profession by the supply of goods and rendering of services in Aruba. The general BBO rate amounts to 1.5%.
A reduced rate of 1% is applicable for that part of the operating revenues that has been realized by the export of goods. Furthermore, certain exemptions are applicable. Most of the exemptions are connected with the medical sector, education, tourism and avoiding double taxation.
Movement of assets within a single fiscal unit for Aruba profit tax purposes are faced with Turnover Tax. However, fiscal unity for Turnover Tax purposes can be requested at the Inspector of Taxes. This means that, for an Aruba established company (parent) which holds all the shares in one or more Aruba established company (subsidiary), Turnover Tax will only be levied at the level of the parent company.