The Minister of Finance announced on Friday the tax relief measures in connection with COVID-19. After further consultation with the Aruba Tax Authorities, we have updated the below overview of the tax relief measures. Please note that these are also based on the publication as recently issued on the website of the Aruba Tax Authorities.
Extension of payment for monthly taxes
Extension of payment for monthly taxes (Tourist levy, BBO/BAZV/BAVP, environmental levy, gaming tax) for the months April, May, June without penalties can apply to companies with activities related to tourism with a monthly turnover below 1 million florins. Companies mentioned to be able to apply for this extension are casinos, transport, and tour companies, security, café/bar/restaurants, landscaping, spa, car rental, travel agents, watersports, carwash, laundry, perfumeries, jewelers, clothing and shoe stores, souvenirs, ground handlers, employment agencies and construction companies.
However please note that the following needs to be complied with in order to be able to apply for an extension:
- A request needs to be filed.
- A simple report to the Tax Inspector/Tax Collector should state cash flow problems.
- Tax returns do need to be filed.
- Once the activities have been restored, the taxes due should be paid in a maximum of 6 terms.
Payroll taxes are not included!
Exclusion of payment with activities related to tourism
- Companies with activities related to tourism will not have to pay the employers premium part of AOV/AWW. A payroll summary needs to be provided in order to be able to apply.
- Companies mentioned to be able to apply for this exclusion are casinos, transport, and tour companies, security, café/bar/restaurants, landscaping, spa, car rental, travel agents, watersports, carwash, laundry, perfumeries, jewelers, clothing and shoe stores, souvenirs, ground handlers, employment agencies and construction companies.
Extension of payment and filing for 2019 profit tax
- Extension up until November 30, 2020, is provided for the filing and payment of the 2019 profit tax returns of companies, with exception of financial institutions.
Extension of payment on current payment DdI payment arrangements
- Extension of 3 months (April, May, June) is provided on all current payment arrangements made with the Departamento di Impuesto.
Calculated Interest and penalties
- There will be no interest accumulated in connection with outstanding amounts.
- No penalties will be imposed for late or partial payment of amounts due.
Flexible Payment Regulations
- 24 months for individuals with a minimum of AWG 100 per month
- 24 months for companies with a minimum of AWG 500 per month
- 36 months for retirees with a minimum of AWG 75 per month
Flexible Regulations with regards to old outstanding tax amounts (incl. lease land and ground taxes):
- Outstanding amounts dated before December 31, 2010, a 75% discount
- Outstanding amounts dated between January 1 and December 31, 2014, a 50% discount
- Outstanding amounts dated between January 1 and December 31, 2016, a 30% discount
- Outstanding amounts dated between January 1 and December 31, 2019, a 10% discount
Special Tariff (10%)
- Aruban residents who receive payment of dividends in 2020 from their company outside of Aruba will now be taxed with a 10% income tax instead of the normal 25% income tax rate / repatriating money from abroad.
Flexibility and Information
- Introduction of voluntary disclosure (“inkeerregeling”) for taxpayers that have not declared tax income in the past, to be able to do so now without any penalties being imposed.
- More flexibility with regards to situations in which a lean was imposed by the Aruba Tax Authorities.
- More flexibility with regards to Tax Audits.
- Online Service with regards to Tax Returns and Payments.
- Transparent Information via media and social media.
As soon as we have detailed information, we will inform you accordingly.
If you have any questions, please do not hesitate to contact us. We are here to help, also in difficult times.
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