Aruba: Domestic Corporate Taxation
This page was last updated on 25 Feb 2019.
Business turnover tax (Dutch: belasting op bedrijfsomzetten, or BBO), an indirect tax, was introduced in January 2007. BBO is levied on the operating revenues received by entrepreneurs 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 received due to 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.
The movement of assets within a single financial unit for Aruban profit tax purposes incurs turnover tax. However, fiscal unity for turnover tax purposes can be requested at the Inspectorate 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.