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Curaçao: Offshore Legal and Tax Regimes

Taxation of Foreign Employees of Offshore Operations

This section refers to the taxation of foreign employees of offshore operations, see Domestic Personal Taxation for the general principles of individual taxation in Curaçao, which also apply to the resident employees of offshore entities.

Since 1987 there has been a special tax regime in the Netherlands Antilles for 'specialist expatriate employees in the financial services (offshore) sector or another important economic business sector generating hard currency and of significance to the community'. As will be seen above, this definition has to be interpreted in the context of each particular business sector. Any individual business or employee therefore needs to take professional advice regarding their 'expatriate' status and the availability of the special tax regime.

Resident expatriates with access to the special regime were, at the time of writing, allowed 35% tax exemption on fringe benefits up to 40% of their salary, with a maximum of ANG40,000; in addition, the following benefits are exempt from tax altogether:

  • foreign social security contributions towards retirement provision;
  • educational costs at the international or Dutch school in Curaçao, or an equivalent school abroad, to a maximum of ANG25,000 per child per year;
  • relocation costs including hotel rooms for two months on arrival;
  • settling-in and moving-out allowances, being the lower of two months' salary or ANG12,000.

Non-residents (residential status depends on location of permanent home, habitual residence, and 'centre of economic and social interest') are taxed only on certain types of Curaçao income: see Domestic Personal Taxation.

 

 

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