Press release from DCSX on Wednesday 04 March, 2020.
The OECD Global Forum on Transparency and Exchange of Information for Tax Purposes is the multilateral framework on tax transparency and exchange of information and is carried out by over 100 jurisdictions which participate in the work of the Global Forum on an equal footing.
The Global Forum is charged with in-depth monitoring and peer review of the implementation of the standards of transparency and exchange of information for tax purposes. These standards are primarily reflected in the 2002 OECD Model Agreement on Exchange of Information on Tax Matters and its commentary, and in the OECD Model Tax Convention on Income and on Capital and its commentary of 2004, which have been incorporated in the UN Model Tax Convention
A new set of country ratings from the Global Forum on Transparency and Exchange of Information for Tax Purposes (the Forum) agreed to grant Curaçao an overall rating of largely compliant with the OECD's updated global standard, which incorporates beneficial ownership of all legal entities. This status was obtained in November 2019. Curaçao has demonstrated sufficient progress on / improved when it comes to access to information and has developed broader agreements for the exchange of information (EOI) on request; and improved their monitoring of the handling of incoming EOI requests.
The European Union on its turn has the so-called Code of Conduct Group on tax measures "which provide for a significantly lower effective level of taxation, including zero taxation, than those levels which generally apply in the Member State in question and which should thus be regarded as potentially harmful. Five criteria are used to assess whether such measures are or not effectively harmful. If harmful, a country is considered non-cooperative and as such denominated on a special list of non-cooperative countries.
Curaçao managed to implement all the necessary reforms to comply with EU tax good governance principles ahead of the agreed deadline and is therefore as of February 2020 confirmed to not being on the list of non-cooperative countries.
After having adequately introduced and adopted another 3 “important tax criteria”, Curaçao is as of January 2020 also compliant with the international standards as applied by the OECD and the Code of Conduct Group of the European Union (EU COCG).
The all-encompassing and clearly most important change is the establishment (i.e. shift) from a worldwide tax system with exemptions for foreign-sourced income to a territorial tax system where only income from a domestic enterprise will be subject to corporate income tax in Curaçao. In addition to this territorial system, Curaçao adopted clear new requirements with respect to corporate substance. And finally, an important change is the replacement of the previous e -zone corporate tax rate by a new reduced corporate tax rate for specific business activities that Curaçao wants to attract and promote within its newly introduced territorial tax system.
For the further development and growth of our exchange, the Dutch Caribbean Securities Exchange (DCSX) is proud and happy that the jurisdiction of Curaçao has obtained this largely compliant and cooperative status. It creates the overall stable environment, now also tax-wise, to continue to together with all active financial services players on the Island, promote Curaçao as a preferred international financial services basin.
That a well-organized, fast-acting, affordable and adequately supervised securities exchange forms part of such international financial services package is logical.
The DCSX will continue to offer its platform to companies from all over that seek a way to create liquidity for existing investors; look for capital as either a startup or as an existing enterprise in need of capital for growth opportunities.
We continue our mission to bring investors and business opportunities together.
Deloitte Dutch Caribbean Tax Newsflash December 2019, National Ordinance Tax Reform 2019, https://www2.deloitte.com/content/dam/Deloitte/an/Documents/tax/Tax%20Newsflash%20WB%20december%202019%20Profit%20Tax%20Reform.pdf
EY Global Tax Alert December 2019, Curaçao amends profit tax legislation from a worldwide tax system to territorial system, https://www.ey.com/gl/en/services/tax/international-tax/alert--Curaçao-amends-profit-tax-legislation-from-a-worldwide-tax-system-to-territorial-system
European Council of the European Union, Press Release February 18, 2020, Taxation: Council revises its EU list of non-cooperative jurisdictions, https://www.consilium.europa.eu/en/press/press-releases/2020/02/18/taxation-council-revises-its-eu-list-of-non-cooperative-jurisdictions/