Council of Ministers agrees with tax benefit business community

ORANJESTAD — On Tuesday, the Eman cabinet signed the enactments to increase the donation rebate and (temporary) reintroduction of the investment rebate. With the tax advantages, the cabinet wants to promote the economy and stimulate the business community to support charitable causes.

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Increasing the donation rebate is one of the agreements made between the cabinet, the employees and employers in the Social Dialogue. In 2007, the former MEP government lowered the rebate for companies donating to charitable causes to a maximum of 10,000 florins. It was one of the measures taken with the introduction of the sales tax (bbo). Another change at that time was that all donations were no longer tax-deductible, namely only donations to institutes included on a list drawn up by the Minister of Finances. The latter will now change slightly because the list of charitable causes will be expanded. The criteria for institutes, associations or other social organizations will be relaxed.
The Council of Ministers also approved the reintroduction of the investment debate for the business community. The previous government had also abolished this rebate with the introduction of the bbo. The most important reason for the current cabinet to reintroduce the tax benefit is to improve investment climate by creating more employment. As mentioned earlier in this newspaper, it regards a temporary measure for the next two years. However, one does not rule out the rebate remains after 2012 or the introduction of a new investment rebate. A 6-percent investment rebate applicable for home investment goods will be introduced as of January. However, the cabinet set a maximum. The business community may not deduct more than 20 million florins from the tax.
As laid down in the law, the parliament has to adopt the tax changes before the yearend in order to become effective on January 1st of the new fiscal year. That also applies for the repair surcharge, which the Council of Ministers approved last week. Low-incomes (up to 2500 florins) will receive a maximum additional amount of 900 florins in order to improve the buying power. This week, the Council of Ministers also approved the enactment for an increase of the excise on luxurious goods, beer, liquor and tobacco.