WILLEMSTAD – Curaçao’s Tax Authority is undergoing a multi-year reform program aimed at structurally improving both the tax system and the organizational framework of the institution. According to program manager John de Lannoy, a solid foundation has already been established, but continued efforts are needed across operational, substantive, and ethical areas.
The overall goal of the reform is to create a more effective and modern tax administration—one that is capable of properly implementing new legislation while also encouraging greater compliance with tax obligations.
Key Reform: From Turnover Tax to VAT
One of the central changes in the reform is the planned replacement of the current turnover tax (OB) with a value-added tax (VAT) system. This shift is expected to simplify tax collection and be less economically disruptive. Additionally, the government aims to rebalance the system by adjusting the ratio between direct and indirect taxation.
Upgrading Infrastructure and Digital Systems
The reform also includes major upgrades to physical infrastructure and ICT systems. Outdated software is being replaced as part of a long-term vision to establish a modern, integrated digital tax environment. This transformation is intended to streamline operations and improve service delivery for both the public and businesses.
Internal Reorganization Underway
In parallel with technological upgrades, an internal reorganization of the tax authority is in progress. Departments such as Tax Inspection, the Receiver’s Office, and various support services are being merged to promote better coordination and administrative efficiency.
Program manager De Lannoy emphasized that while the reform is a long-term effort, its successful implementation will ultimately result in a more reliable and responsive tax system that supports Curaçao’s economic stability and public trust.