Page 44 - Caribbean-Central America Profile 2018

ARUBA

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

There are three types of corporate entities in otherwise no permission will be granted. In TRADE AGREEMENTS AND
Aruba for which incorporation is subject to these special cases a profit tax of 2% will INVESTMENT TREATIES
approval by the Minister of Justice: be due on the profit that derives from sales • European Union -Association
to the internal market. Also an exemption of
• The limited liability corporation (commonly import duties will be applicable. • Free Trade Agreement Aruba-Netherlands
referred to in Dutch as ‘N.V.’), 6. As of January 1, 2013 the Free Zone Facility Antilles
• The Aruba Exempt Corporation (commonly Charge (FFC) is 0.75% of the turnover. The • Economic Commission for Latin America
referred to in Dutch as ‘A.V.V.’) higher the turnover the less a company will and the Caribbean (ECLAC)
• The limited liability company (commonly pay. • Association of Caribbean States (ACS)
referred to in Dutch as ‘V.B.A.’). 7. Exemption for dividend withholding tax GOVERNMENT
The time required to complete incorporation of 8. The special package for expatriates is Aruba is a parliamentary democracy. The
a corporate entity and to obtain the necessary applicable. head of state is the Queen of the Netherlands
permit licenses varies. A corporate entity Free Zone Aruba (FZA) N.V. who is represented by a governor. The
(minimum investment of USD 275,000) can Avenida Milio Croes 118-A, governor is appointed by the Queen, upon
be incorporated in about two weeks, depending Dakota, P.O. Box 225 the recommendation of the Aruban Council
on the complexity of the legal construction Aruba of Ministers, for a six-year term of office.
provided all required documents have been Tel: (297) 582 0909 Vested with executive power and headed by
completed and submitted. Fax: (297) 582 0888 a Prime Minister is a seven-member Council
E-mail: infomail@fzanv.com of Ministers. This Council is responsible to
FREE ZONE Web: www.fzanv.com a 21-member parliament (Staten), which is
The free zone of Aruba holds a strategic elected every four years on the basis of a multi-
position for import from/export to North, South TAXES party system. Aruba’s judicial system, which
America, the Caribbean and Europe. Free Zone Import Duties: The standard tariff is 12 percent. has been derived mainly from the Dutch system,
companies receive substantial fiscal incentives In general, primary foodstuffs are exempted operates independently of the legislature and the
including exemption from import duties and from import duties and higher tariffs apply to executive. Jurisdiction, including appeal, lies
low rates of taxation. They also benefit from the luxury items. with the Common Court of Justice of Aruba and
following: the Supreme Court of Justice in the Netherlands.
Excise Taxes: Excise taxes are levied on
1. Clarification on the definition of services. alcoholic beverages, cigarettes and fuel ELECTIONS
Activities as consultancy, courses and products. General elections were held in Aruba on 27
certification can now take place in the Free Transit and Export Duties: No duties are September 2013 to choose the 21 members
Zone levied on exports, except on irregular transit. In of the Estates (the parliament of Aruba). The
2. A free zone company (services only) can be the latter case, a low levy is applicable. incumbent AVP, led by Mike Eman, won 13
located anywhere on the island; seats in the Estates. The MEP won 7 seats, with
3. The main principle is that no more than 25% Capital Tax: There is no Aruban withholding the final seat being won by the Real Democratic
tax on capital.
of the services and or products may be sold Party. The next elections are due in 2017.
on the internal market Dividend Tax: There is a dividend withholding
4. In certain situations (activities in the field tax of 10% on dividends. If the ultimate parent or LEADERS
Governor
of sustainability and activities suitable for the company itself is listed on an accepted stock Alfonso Boekhoudt
the gateway concept) the ratio between exchange, the dividend withholding tax will be Plaza Henny Eman 3,
export and internal market can be 50/50%. reduced to 5%. However, the shares listed on the Oranjestad, Aruba
This will apply for the following activities: stock exchange must represent at least half of Tel: (297) 583 4445
a. sustainable energy, b. sustainable the total voting rights of the company. Fax: (297) 583 0730
food production, c. medical tourism, d. Gambling Licenses: Casinos pay fixed E-mail: directeur@kabga.aw
sustainable means of transportation, e. gambling license rights of Afl.5, 000 monthly,
maintenance and repairs. A request can be together with a 4 percent fee on the gross Prime Minister
filed with the Minister of Finance and the income. Mike Eman
Minister of Economic Affairs L.G. Smith Boulevard 76
5. In some special cases the Minister of Finance Room Tax: Payable by the guest at a rate of 6 Oranjestad, Aruba
percent over the cost of the accommodation.
together with the Minister of Economic Tel: (297) 588 0300
Affairs can give permission to deviate Department of Economic Affairs, Commerce Fax: (297) 588 0024
from the 50/50% ratio so more products or and Industry (DEACI)
services can be sold on the internal market. Sun Plaza Building, MINISTRIES
For instance for activities that will help L.G Smith Boulevard 160 Ministry of General Affairs and Foreign
lower the costs for utilities, activities that Aruba Relations
will enhance healthcare, waste management Tel: (297) 582 1181 L.G. Smith Boulevard 76
and the reduction of food prices. It should Fax: (297) 583 4494 Oranjestad, Aruba
be clear that these activities should have E-mail: deaci@setarnet.aw Tel: (297) 588 0300
an added value for the Aruban community Web: www.arubaeconomicaffairs.aw Fax: (297) 588 0024

B-8 Caribbean-Central American Action