Recently, amendments related to the Profit Tax and State Ordinance on General Taxes were approved by the Parliament of Aruba. These amendments are related to the commitment of Aruba to meet the minimum standards of Organisation for Economic Cooperation and Development’s (OECD) base erosion and profit shifting (BEPS) action plan. The amendments implement transfer pricing documentation and country-by-country (CbC) reporting requirements for multinational enterprises. 


In 2018 Aruba became a member of the Inclusive Framework on Base Erosion and Profit Shifting of the OECD. As a member, Aruba commits to comply with the minimum standards of OECD’s BEPS action plan. The new documentation and reporting requirement include the following: 

  • Country-by-country report 
  • Master file 
  • Local file 

CbC Reporting 

Multinational groups with Afl. 1,500,000,000 or more in consolidated group revenue must prepare a country report every year. Multinational groups have to send this report to the tax authorities of the country where the ultimate parent entity, the surrogate parent or the appointed parent of the group is located. The country report has to be provided to the other countries in which the multinational groups are active by the tax authorities of the parent entity.  

An Aruba entity of a qualifying multinational group should notify the tax inspector whether the Aruba entity is the ultimate parent, the surrogate parent or the appointed parent of the group ultimately on the last day of the fiscal year. 

For the fiscal year 2019, the notification obligation deadline has been extended with three months to March 31, 2020.  

Master file and local file 

The object of the master file and the local file is to substantiate the transfer prices used. The master file provides an overview of the transfer pricing policy of the entire group. 

The local file provides information about the intercompany transactions of the local branch.  

The obligation to prepare a master file and a local file in Aruba applies to group entities of multinational groups that have a consolidated group revenue exceeding Afl. 100.000.000 


The transfer pricing documentation as part of the accounts has to be kept in accordance with the Aruba Profit tax State Ordinance. Non-compliance with the transfer pricing requirements and the obligations related to the master file and/or local file is considered a criminal offense and can lead to a penalty of a maximum fine of Afl. 100.000. 

Contact our Tax & Legal team, we’re happy to assist.

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