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Economy and Banking Sector of Curacao

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Curacao: 0.0 - 0.0%

Withholding tax rates applied on payments of interest and dividends in Curacao are shown in Table 1.

Dividends Interest
Natural Persons (residents) 0.0 %0.0 %
Natural Persons (non-residents) 0.0 %0.0 %
Table 1. Withholding tax rates in Curacao.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Curacao: 4 Signed Agreements

Curacao signed DTAs which already came info force with the following jurisdictions:

AW Aruba
NL Netherlands
NO Norway
SX Sint Maarten (Dutch part)

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 23 Signed Agreements

Curacao signed TIEAs which already came info force with the following jurisdictions :

AU Australia
CA Canada
DK Denmark
FO Faroe Islands
FI Finland
FR France
GL Greenland
IS Iceland
MX Mexico
NZ New Zealand
VC Saint Vincent and The Grenadines
ES Spain
SE Sweden
US United States

There are also several agreements between Curacao and other jurisdictions which was signed but haven't yet come into force:

AG Antigua and Barbuda
AR Argentina
BM Bermuda
VG British Virgin Islands
KY Cayman Islands
CO Colombia
KN Saint Kitts and Nevis
LC Saint Lucia
GB United Kingdom

Automatic Exchange: Starts in September 2018

Curacao didn't sign the automatic information exchange agreement but made a commitment to start the automatic information exchange in September 2018.

Automatic Excnange: 0 Bilateral Agreements to Receive Information

Curacao has not singed any bilateral agreements to automatically receive information.

Automatic Excnange: 0 Bilateral Agreements to Send Information

Curacao has not singed any bilateral agreements to automatically send information.

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Curacao
IGA in effect since 16 December 2014, Model 1

Curacao has FATCA agreement with the U.S. in effect since 16 December 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Curacao are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Curacao's financial accounts hold in U.S. financial institutions will be reported to Curacao's authorities.

Further Information