• Quality hotel business operations (one of the conditions to be met is that the average room charge should be at least Af 354 per day);
• International air and sea transportation (with each seperate vessel having a minimum net tonnage of 2.500 tons);
• Developing, acquiring, keeping, maintaining and licensing of patent, copyrights, video rights, music rights and trademark rights;
• The development, acquisition and exploitation of information and communication technology;
• Captive insurance activities;
• The financing of other enterprises and companies whether or not inter company, but excluding banking activities;
• Qualifying holding and 'passive' investment activities;
• A company aimed towards generating renewable energy;

How does the imputation system work?
An IPC is subject to the ordinary profit tax rate of 28%. However after the company distributes dividends, the shareholder becomes entitled to an imputation payment of 26/72 of the dividend. Assuming the IPC's profit is 100 and the IPC paid 28 as profit tax, 72 is available for distribution. If the IPC pays a dividend of 72, the shareholder becomes entitled to an imputation payment by the Government of Aruba of 72*26/72=26. This means that the effective profit tax rate of an IPC is only 2 %.

The IPC has to withhold dividend tax of 10% on both the dividend and the imputation payment: 10% of (72+26)=9.8. If the ultimate parent company or the IPC itself is quoted on an acknowledged stock exchange, the dividend withholding tax will be reduced to 5%. The rate may also be reduced to 5% on the basis of the Tax Arrangement for the Kingdom.
Contact: www.siad.aw