PwC: Direct tax is too high

Unlike the trend in other countries of tax cuts, Curacao still uses the high tax rate of 34.5 percent. In 2000, the world average at 32.4 percent, but in 2009 was already 25.5 percent. The salary / income is high with the top rate of Curaçao 49.9 percent (excluding bonuses), while an international shift toward more indirect taxes such as sales tax (OB).

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"In order to be competitive in the international market, the new country Curacao in the short term, must take steps to improve the tax legislation, with particular
tax priority, "said Zuleika charges, tax director in the tax practice of PwC Dutch Caribbean.
,, Otherwise we risk to miss the connection. "PwC yesterday organized a seminar in Kura Hulanda, in which the practical implications of the new tax laws of the BES-islands local entrepreneurs and investors was discussed. The interest was great. Speakers at the seminar but were charges of Curacao, and also Roland Brandsma Suniel Pancham PwC Netherlands.
After an outline of the contents of tax legislation for the BES, was based on case examples and situations in the ‘new’ position of the country Curacao discussed in relation to international developments in taxation. Minister George Jamaloodin (MFF) of Finance was present. A commonly voiced concern is that Bonaire in the new structure by January 1, 2011 highly competitive, Curaçao (and Aruba and St. Martin) because of the abolition of tax on the BES. Although charges are that the rate is too high and must be quickly lowered, PwC believes that this is not entirely justified concern amongst other things because companies that are not really "active" on Bonaire will be taxed in the Netherlands. An example could include international mutual funds. Also, on Bonaire at January 1, 2011 a withholding tax of 5 percent will be levied. Curacao uses no withholding tax. Curaçao also has several options to reduce the tax burden, including the Exempt Company (NABV), the E-Zone, the SPF (Private Fund Foundation) and the old offshore rules that remain valid until 2019. PwC believes it is important that the government remains vigilant on international tax developments and tax where appropriate, they continue to optimize.