Willemstad:--- The Social and Economic Council (SER) of Curaçao issued an advisory report to the Minister of Finance, Mr. Drs. Javier Silvania, on some tax reforms, including a reduction in the profit tax rate, last Tuesday, March 26.
With the agreement of the Parliament of Curaçao, the Minister intends to apply a reduced profit tax rate of 15% on the first NAf. Five hundred thousand of the taxable amounts from domestic enterprises will be introduced in the National Ordinance on Profits Tax retroactively to January 1, 2023, while a rate of 22% will continue to apply to income above that.
Furthermore, the amendment to the National Ordinance on Economic Zones seeks to remove the restriction that prohibits companies in these zones from supplying more than 25% of their sales to the local market to promote integration with the local economy.
These measures, part of a broader package of tax reforms, are intended to stimulate the local economy and support small and start-up businesses.
The SER's opinion, which assessed the proposed changes for consistency, efficiency, effectiveness, and socioeconomic impact, is an important step in the parliamentary consideration of the draft national ordinance that has yet to ratify the changes formally.
