WILLEMSTAD - The Ministry of Finance of Curaçao announces that stricter measures will apply from 2024 for business owners who do not submit their profit tax returns in a timely manner. Currently, less than sixty percent of business owners meet this obligation. The ministry states that business owners who do not submit their returns before April 1 will receive a supplementary assessment with a penalty.
Additionally, if the tax authorities suspect that business owners have paid too little tax for the period 2019-2021, even after satisfying the supplementary assessment, they can expect an additional assessment. "This approach emphasizes the importance of fair taxation where everyone contributes according to their capacity," said the ministry.
Rate reduction
The ministry has implemented a rate reduction from 22 percent to fifteen percent for the first 500,000 guilders of taxable profit since 2023. This reduction has been made possible by increased tax revenues due to improved compliance with tax rules.
A new policy is being introduced for business owners who repeatedly ignore warnings. Instead of a settlement offer, criminal prosecution will be chosen directly. This decision was made after consultation between various government agencies, including the tax authorities, customs, and the public prosecutor's office.
This policy aims to have a preventive effect and encourage business owners to fulfill their reporting obligations. Failure to do so may lead to criminal prosecution and a criminal record upon conviction.
Business owners with overdue returns are urged to submit them as soon as possible through the online filing portal. This obligation also applies to directors of a Stichting Particulier Fonds (SPF), with the risk of criminal prosecution for non-compliance.