Page 71 - Caribbean-Central America Profile 2018

CURAÇAO

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

There are currently two active free zones in The three main types of activities that are HOTELS:
Curaçao, one in the harbor and one at the airport. attracted to the Airport Free Zone are: • A reduced profit tax -including additional
One of the best characteristics of Curaçao’s • Logistics Service Providers: service firms charges- of at least 2% for a period of 11
Free Zones happens to be the quality of the years at the most.
infrastructure The extensive road networks that provide logistical services, such as order • Exemption from import duties (including
are well designed and maintained. Modern taking, invoicing, inventory management, levies) on materials and on goods required
telecommunication facilities provide direct and storage, repackaging and shipping. for construction (includes expansions) and
reliable contact with every country in the world. • Vendor Trade Mart: wholesalers/ initial furbishing (i.e. capital equipment)
The processing of all types of freight as well as distributors of brand name goods to retailers of the hotel’s premises. In the case of
the air and sea logistic connections is very well and wholesalers in the region. renovation, exemption for a two-year period
organized.
• Regional Distribution Centers: Curaçao’s from import duties (including levies) on
Furthermore, the special incentives make it very strategic location in the southern Caribbean, materials and goods required for expansion,
appealing for businesses to operate in any of the its excellent infrastructure, its secure and improvement and/or renewal. To qualify
Curaçao Free Trade Zones of their choice. stable political and economic environment, the limited liability company’s investment
and its well developed international financial in expansion, improvement and/or renewal
• On goods imported into the free trade zone should amount to at least US$ 165,000.
no import duties are required. services make it a profitable location for • Exemption for a period of 10 years from
• Annually at least 75% of total sales has to companies to locate a regional distribution land tax on the hotel’s premises after
center where they can deliver goods quickly
be exported, while up to 25% of total sales becoming taxable.
may be sold on the domestic market after and safely to their customers in the region, • Exemption from occupancy tax on the use
obtaining a permit from the Government. provide sales, marketing and technical of the hotel’s land for a period of 10 years
• Routine customs formalities related to support to their customers, customize their starting after the year of the start-up of the
import and export are free of charge products for the Latin American market, and hotel.
during regular office hours, while other train regional staff and sales agents. • Exemption from personal income tax on
administrative matters are reduced to a income earned from dividends and other
minimum. FREE ZONE (E-ZONE): distribution of profits within two years
To qualify a legal entity with share capital after the fiscal year in which the profit
HARBOR FREE ZONE must first be admitted to the economic zone was obtained. To qualify a limited liability
• Multi purpose buildings with showrooms. (e-zone) in which international trade and trade- company should invest at least US$ 550,000
• Permanent maintenance crews. supporting services are performed. in its construction and initial furbishing
• Telecommunication connections. The following fiscal facilities can be obtained: (includes expansions) within two years of
• Fully serviced area. the date of the Decree.
• Customs clearance at the main gate. • A 2% tax -including surcharges- on the MANUFACTURING:
• 24 hours, 7 days a week security. profit induced by exports up to and including • A reduced profit tax -including additional
December 2025; charges- of at least 2% for a period of 11
The types of businesses, which are currently • Exemption from turnover tax (“OB”), years at the most. If at least 90% of the
operating in this free zone, are: finished product is exported or used in the
excises, import duties (including economic processing, treatment or assembly of new
• Wholesalers of consumer products targeting levies) in the case of import, transshipment market products, respectively exported by
the Caribbean. The product types include or export; a manufacturing company that exports 90%
garments, apparel, textiles, cosmetics, • Employees who lived outside the of its finished product, the enterprise may
perfumes, and shoes. Netherlands Antilles for more than 5 years benefit from the above-mentioned reduced
• Foreign manufacturers and trading can qualify for an expatriate status. In profit tax for a period of 15 years.
companies that target regional distribution addition, the e-zone company may grant • Exemption from import duties (including
and service centers for the southern certain tax-free benefits to the employee; levies) on materials, on goods required for
Caribbean Basin and South and Central construction (includes expansions) and
America. • Upon request the Central Bank will initial equipment (of which the period may
grant an exemption from the payment of not exceed two years) of the industry’s
AIRPORT FREE ZONE foreign exchange license fee charges for
The Airport Free Zone distinguishes itself from merchandise transactions. premises, as well as on packaging material,
other free zones by its unique location and on machinery, raw materials, semi-
outstanding telecommunication facilities. The manufactured articles and accessory means,
new free zone borders onto the International TAXES necessary for the industrial process.
Airport Hato, lies within the customs area and Between Curaçao and other countries in the • Exemption from personal income tax on
has a connecting roadway that leads directly to Dutch Caribbean is a tax-free transit agreement. income earned from dividends and other
the airport runway. High quality voice and data This implies 0% duties or other taxes when distribution of profits within two years
communication is guaranteed as the entire zone goods arrive from another country within the after the fiscal year in which the profit was
is provided with fiber-optic cables. Dutch Kingdom. obtained.

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