WILLEMSTAD - In a press release, the association that safeguards the interests of business owners in the tourism sector (CASHA), indicated that they had a meeting with the Minister of Finance Javier Silviana. The reason for the meeting was CASHA’s statement in January about the increasing illegality in the field of rental vacation and car rentals, diving schools, taxi, and tour companies. CASHA expressed its concern about the ease with which this seems possible. The organization advocates a level playing field for everyone.
Representatives of the Tax Accountants Bureau (BAB) and Curacao Tourist Board (CTB) also took part of this meeting.
The minister stated that he is aware of the illegal activities, and he is doing everything he can to prevent them. Next year, the budget will consider the deployment of additional manpower, with the illegal accommodation rentals being tackled first.
According to the BAB, many illegal rental addresses are known to the tax authorities. These are mapped out through various processes and cooperation with other authorities, which are given priority in investigation and inspections. The BAB wants to work with various booking sites, such as Airbnb, Booking.com, Micazu and Tripadvisor for the payment of sales tax.
As of January 1, 2016, the Curaçao Accommodation Tax, also known room tax, has been replaced by the regular turnover tax. From that moment on, the lodging tax is no longer collected, but the rental price is increased by the sales tax. From January 1, 2016, a sales tax of 7% will only be levied on short stays in hotels, private apartments, villas, and time share options. Where the accommodation tax was collected by the CTB, the turnover tax is processed by the tax authorities.
Car rental and diving schools are also known to act illegally on a large scale. These sectors are also monitored.
The minister is aware that there is a lack of information about the rules for renting to landlords from Curacao and landlords from abroad. He is considering placing this information on the website.
CASHA believes it is important that potential buyers of a house intended for rental are adequately informed about the rights and obligations of investing in real estate in Curaçao. Landlords on Curacao should be kept informed of the rules regarding rental through social media, newspaper, and TV commercials. After all, it is very important that everyone who carries out an economic activity knows how to comply with this. “If the playing field is leveled for everyone and everyone contributes, we can make Curacao grow,” says CASHA in their press release.