The following table summarizes the incentives provided for each
sector.
Fiscal Incentives for Sectoral Promotion
| |
Hotel |
Manufacturing |
Land Development |
e-Commerce |
Others |
| Criteria |
Limited liability
company |
Limited liability company in non-oil sector |
Limited liability
company |
First need to be admitted to the economic zone
area |
|
Minimum
investment
requirement |
US$550,000 (if renovation, US$165,000) |
US$137,500 |
US$1,100,000
excluding the
value of the land |
|
US$137,500 |
Other
requirement |
|
Create at least 5 permanent jobs |
Investment needs to be made within 5 years of the
date of the Central
Decision |
|
Create at least 5 permanent jobs to persons born
in the NA |
| Corporate tax |
|
2% for maximum of 11 years |
|
2% till December
2025 |
2% for a period of 11 years |
| Other tax |
|
|
2% on the profit
obtained by the
sale of developed
land for maximum
of 15 years |
Exemption of turnover tax and excises |
|
| Exemptions of import duties |
on materials and goods required
for construction
and initial
furbishing of the
hotel's premises
(in case of renovation, exemption is for two years) |
on materials and goods required for
construction and initial equipment of
the industry's premises, as well as packaging material, machinery,
raw materials, semi-manufactured
articles and accessory means
necessary for the industrial process |
on materials and goods intended for
the laying out of roads, on construction of real estate and
on the laying out or
construction of locations for amusement purposes |
Exempted |
On materials and on goods required for construction
and initial capital equipment (includes expansions) of the business'
premises. In addition, exemption from import duties for a period
of 10 years at the most on raw materials and semi-manufactured
articles, as far
as these components are processed by the company. |
Exemption of
land tax |
On hotel's premise for 10 years after becoming
taxable |
On the industry's premise for maximum 11 years
after becoming taxable, but no later than 2009 |
As long as the plots of land, which are being developed,
are not let out |
|
On the business' premises for 10 years after becoming
taxable |
Exemption
of occupancy tax |
On the use of the hotel's land for 1 year after
the start-up of the hotel |
On the use of the industry's land for maximum of
11 years, but not later than 2009 |
Due to the use of the company's plots |
|
On the use of the business' land premises, after
becoming taxable |
Exemption from personal income
tax |
On income earned from dividends and other distribution
of profits within two years after the fiscal year in which the
profit was obtained |
On income earned from dividends and other distribution
of profits within two years after the fiscal year in which the
profit was obtained |
On income earned from dividends and other distribution
of profits within two years after the fiscal year in which the
profit was obtained |
Employees who lived outside the NA for more than
5 years can qualify for an expatriate status |
On income earned from dividends and other distribution
of profits within two years after the fiscal year in which the
profit was obtained |
Foreign exchange
license fees |
|
|
|
Upon request, the Central Bank will grant an exemption
from the payment of foreign exchange license fee charges for
merchandise transactions |
|
Other Incentives are available to foreign investors including
reduced rent of up to 40 per cent for buildings in the free zone
(e-zones, see above); duty free building materials, machinery and
equipment; an annual investment allowance of 8 per cent on the total
investments for the first two financial years; unlimited use of
carry-over losses incurred over the first four years of the company's
business. A business Development Scheme is available to provide
export assistance. Financing assistance is available through OBNA
and Korpodeko and trade agreements with the EU and USA are established.
Free trade zones (e-zones) are located at the harbor at Curaçao,
the international airport and the Industrial Park. The free zones
are secure and permanently maintained. They are a distribution center
for export to the Caribbean, Americas and the EU. Products for export
to the USA and EU are admitted without charge. There is no customs
duty imposed for imports, transshipment and/or export of goods.
Twenty five percent of total sales may be made to the local market.
