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26th of April 2017
   
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Financial Services

The Profit Tax Law contains favorable provisions to investment companies. With these provisions the Government aims at developing Aruba into an international financial services center.

The development of the international financial services is based primarily on three fiscal incentives:
  1. The Imputation Payment Company (IPC)
  2. The Aruba Exempt Company ('Aruba Vrijgestelde Vennootschap)
  3. 'Check-the-box'-rules for fiscal transparency
The entities mentioned under 1 and 2 can be used for mutual funds, captive insurance companies, leasing or finance companies excluding banking activities, trading, royalty, investment and holding companies, companies aimed at the development, acquisition and exploitation of information and communication technology, shipping and aviation companies operating in international traffic and companies aimed at developing, acquiring, keeping, maintaining and licensing of patents, copy, video, music and trademark rights.

   The Imputation Payment Company (IPC)
The IPC-system has been explained in the chapter on fiscal incentives.

   The Aruba Exempt Company ('Aruba Vrijgestelde Vennootschap)
The Aruba Exempt Companies is a particular form of a limited liability company. It enjoys an exemption from profit and dividend withholding tax provided it engages solely in qualifying activities. The qualifying activities include holding and financing activities, certain investment activities (except investments in real estate) and licensing intellectual and industrial rights. However, an Aruba Exempt Company receiving more than 5% of its income from participations located in a jurisdiction in which it is subject to a profit tax lower than 50% of the profit tax rate of Aruba (for the year 2007; 50% of 28% = 14%), loses its entitlement to the exemption.  

   'Check-the-box'-rules for fiscal transparency 
Under the ‘check-the-box’-rules, limited liability companies and Aruba Exempt Companies are allowed to opt for fiscal transparency. The company will than be treated as a partnership and the profit, assets and liabilities will be allocated to its shareholders. In case of shareholders residing in Aruba, the profits may be subject to tax at the level of the shareholders. Should the shareholders reside outside Aruba, the profits will not be taxable unless business is performed through a permanent establishment at Aruba or derived from immovable property situated in Aruba.

Aruba complies with the international agreements and regulations stipulated by the Organization for Economic Cooperation and Development (OECD) and the Code of Conduct on harmful tax competition within the framework of the European Union.

For more information, please contact:

Directie der Belastingen
Camacuri 2,
Phone: +297 522 7474
Fax: +297 522 7475
E-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Website: www.siad.aw

Aruba Financial Center
Vondellaan 6-d
Phone: 297 583 4611
Fax: 297 583 4665
Website: www.arubafinancialcenter.aw

or


Aruba Financial Center Association
L.G. Smith Boulevard 50, suite 101
Oranjestad, Aruba
Tel: 297 588 7355
Fax: 297 588 7533
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Website: www.afca-aruba.com