Under the new “check-the-box”-rules, limited liability Aruba companies (“naamloze vennootschap”) (“n.v.”) and aruba axempt companies (“AVV”) have the option to opt for fiscal transparency. In that case the company will be treated fiscally as a partnership (“maatschap”), so that not the company is subject top profit tax, but the shareholders. If the shareholders reside in Aruba, the profits may be subject to tax at the level of the shareholders, in case of a company 35%. In case of an individual the rate could be higher than 35%. If the shareholders reside outside Aruba, the profits (made by the foreign shareholder) will not be taxable unless the foreign shareholder is deemed to have a permanent establishment in Aruba or the profits are derived from immovable property in Aruba.
Published by Lincoln D Gomez
Lincoln D. Gomez is a corporate lawyer based in Aruba. He is admitted to the Bar in both Aruba Curacao, Sint Maarten & BES-islands. He holds degrees in International Tax & Financial Services from Thomas Jefferson School of Law, San Diego, CA (LL.M.), a law degree from the Universiteit van Aruba (LL.M.) and Biology and Chemistry from Saint Leo University, Tampa, FL He is co-founder and managing-partner of Gomez & Bikker www.gobiklaw.com. His practice concentrates on Aruba corporate law, intellectual property, aviation finance & registration, labor law, real estate and civil litigation. He is an author and lecturer on Aruba law. His publications are in the areas of: the civil code of Aruba, labor laws, intellectual property, aviation finance and corporate law. His clients have dubbed him "the Aruba Guy" when it comes to finding creative solutions to complex legal issues in Aruba. View all posts by Lincoln D Gomez