Constitutional restructuring of the Dutch Kingdom October 10th, 2010

The Dutch Kingdom was chartered by the Charter of the Dutch Kingdom (“Statuut voor het Koninkrijk der Nederlanden”) of 1954. At that time the Dutch Kingdom was formed by three states i.e. the Netherlands, the Netherlands Antilles and Suriname. In 1975, Suriname chose for its independence and the Charter of the Dutch Kingdom was amended accordingly. From 1954 through December 31^st, 1985, the Netherlands Antilles consisted of six (6) islands:  Aruba, Curacao, Bonaire, St. Maarten, Saba and St. Eustatius. As a result of further constitutional restructuring Aruba became a separate state within the Dutch Kingdom as of January 1^st, 1986 (“Status Aparte”). Hence, as of January 1^st, 1986, the Dutch Kingdom consisted of three (3) states i.e. Aruba, the Netherlands and the Netherlands Antilles. Each of these jurisdictions had their individual (and different) fiscal jurisdictions. Through the Tax Treaty for the Kingdom (“Belastingregeling voor het Koninkrijk”) double taxation within these states was regulated.

Further political developments have continued to alter the relations within the Dutch Kingdom. These developments will require for the Charter of the Dutch Kingdom to be amended (again). As a result thereof the Dutch Kingdom will consist of four geographical jurisdictions, i.e. Aruba, Curacao, Sint Maarten and the Netherlands. The State of the Netherlands Antilles will cease to exist. Curacao and Sint Maarten will become autonomous states within the Dutch Kingdom, similar to Aruba. The islands Bonaire, Saba and Sint Eustatius (“BES”) will become overseas municipalities of the Netherlands in accordance with section 134 of the Dutch Constitution. While the BES-islands will become an overseas municipality of the Netherlands it will have a different fiscal regime than that of the Netherlands. Following discussions between representatives of the Netherlands, Aruba and the Netherlands Antilles in the Dutch Senate, the regulations required to bring about the basis for the constitutional restructuring were passed by (a majority in) the Dutch Senate during a hearing on April 15^th, 2010. These changes will enter into effect as of October 10^th, 2010.