Aruba Cuts Profits Tax Rate, Clarifies Tax Return Changes
by Mike Godfrey, Lowtax.net, Washington
01 January, 2016
Caribbean territory Aruba slashed its profits tax rate on corporates from 28 percent to 25 percent on January 1.
The rate cut was announced at the end of November by the tax authority. On December 29, 2015, it further announced that the deadline for filing and paying corporate income tax for the 2014 tax year is February 1, 2016.
In late 2015, Aruba's Parliament approved a significant change to the tax administration provisions in the income tax law. The current tax assessment system – through which the tax office issues assessments to taxpayers – will be phased out and instead taxpayers will be required to self assess liability to profit tax. Under the existing system, taxpayers receive a provisional assessment, a final assessment, and an additional assessment.
Instead, for profits tax liability for the fiscal year 2014, taxpayers are required to calculate taxable profits on their profits tax returns and tax dues will be payable immediately.
In its December 29 statement, the authority however said: "If it is not feasible to file the final 2014 tax return and make the corresponding payment on February 1, 2016, you can submit a request for postponement no later than February 1, 2016... As a result, the deadline for filing the final 2014 corporate income tax return will be extended until March 31, 2016."
See all of today's news