Want to setup a company? This will tell you about tax laws in Curacao, for a NV (LLC) which is the most common legal entity in Curacao.
Curaçao usually imposes tax on corporate worldwide income at 22% rate. This ranks Curacao as 88th overall in terms of CIT globally. However, there are several exemptions:
Export Regime Companies: Companies which 90% or more of their income is the result of transactions with foreign clients are subject to a reduced rate of 3.2%.
E-Zone Regime: Companies engaging international e-commerce business may be established in Curacao E-zones and be taxed at a 2% corporate profit tax rate.
Tax Exempt NV: Companies may elect to be tax exempted, provided, among other conditions, that beneficiaries, managements and financials are publicly disclosed and no more than 5% of the revenues of the company consist of dividends from profits of subsidiaries taxed at rates lower than 11%. Exempt companies are commonly used for investment and finance and licensing of intellectual and industrial property rights.
The valued added tax rate in Curacao is 5.00%, that ranks Curacao as 35th overall in terms of VAT globally. In terms of other taxation, an employer will contribute 9.3% to the equivalent of a social security fund and an employee will contribute 4.3%.
Thin capitalisation restrictions are in play. Thin capitalisation refers to any type of requirements on companies' debt-to-asset ratios.
Dividends received are subject to 10% tax. However, dividends received may be tax exempted, provided that the resident company holds at least 5% of shares of subsidiary, which has to be an active business and subject to income tax of at least 10%. Dividends are distributions of earnings of the legal entity, established by the board of directors, to a particular class of shareholders. Dividends can be issued as stock, cash, or property.
Capital Gains are subject to Corporate Income Tax. However, those from the disposal of shares, when the resident company holds at least 5% of participation, and subsidiary is an active business subject to at least 10% income tax, may be exempted. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.
There are no withholding taxes on dividends, interests nor royalties remitted abroad. This means that payments to non-residents are not subject to withholding tax.
There is no known tax on wealth in Curacao. There are inheritance and real property taxes in CW.
The above is not tax or legal advice for your company's situation. Incorporations.io can refer you to an accountant in Curacao who can properly advise you. Want to work together? Click the free consultation button above.
It takes approximately - hours to file and prepare documents for a Curacao Civil Law (Dutch).
The corporate tax is approximately 22% which is 90 in the world.
Owners of a company in Curacao are not allowed to carry back a loss and may be allowed to carry forward a loss for 10 years.
The vat rate in Curacao is 6% which ranks 33 in the world.
For starters, the law in Curacao is civil law (dutch) law. You will want to get some local advice as to how to best structure a company in Curacao. Electronic signatures are permitted.
The country code CW is for Curacao and the most common company type in Curacao is a LLC.
You should expect a wait time of 2 weeks to incorporate a LLC in CW. is 0, This means you don't have any minimum share capital. The types of currencies you can use to capitalize your company is most commonly legal tender.
Yes, one is allowed to re-domicile a LLC from CW. You are usually allowed to change the jurisdiction of the company, pending certain procedures.
There must be at least 1 shareholder. This makes it possible for you to own a LLC in CW by yourself. Corporate Shareholders are permitted, which means you can have a legal entity as a shareholder. Foreign ownership is permitted, up to % of the ownership of the LLC.
A legal entity is only required to have one director. Consequently, corporate directors are permitted. Directorship information is ususally not shared with the general public. There is a requirement to have annual meetings of shareholders.
A registered agent is normally required, which means the company will have to pay a fee on a yearly basis, for an office which can receive any lawsuit papers on behalf of the registered legal entity. Furthermore, a company secretary is not required in CW, which can save the company money if you can perform basic corporate governance internally.
There is a not a requirement to file annual returns. This doesn't exclude the business or its owners from different tax or reporting obligations elsewhere and you would be wise to receive personal advice on your personal tax obligation. On that note, there is usually not a requirement to have an audited set of accounts.
Thin capitalization rules are not in effect.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are not disclosed in the public registry of Curacao, Curacao Chamber of Commerce and Industry. Shareholders are not disclosed in the Curacao Chamber of Commerce and Industry.
Typically companies take 2 weeks to setup and there are 1 director(s) required and 1 shareholder(s) required at the time of incorporation.
Overall we think Curacao is a good option and have given it a score of 76 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Curacao. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Curacao, which is required by law.