In an ongoing effort to keep you informed in connection with COVID-19, please find attached an overview containing the (aid) measures that have been implemented by the Curaçao Government to assist entrepreneurs and also the Curacao Citizens in these difficult times.
The document circulated by Government with the measures is in Dutch. We have summarized the most important changes below in English.
Three Ministries have been working together to provide with aid measures for companies, entrepreneurs, employees and also citizens of Curaçao. Please find below a summary of the measures that have been announced on 23 March 2020 by the Curacao Government. The Ministers indicated that this is the first phase to consider for now and if necessary, further measures will be taken in another phase.
Initiatives Ministry of Economic Affairs (abbreviation commonly used: “MEO”)
Ministry of Finance
The Ministry of Finance (MINFIN) has announced the following measures that provide entrepreneurs and employees with room to breathe for the period April – June 2020. Thus the changes will need to be processed firstly in the April tax returns (payroll or turnover tax) due in May 2020.
Additional comments BDO
AOV/AWW – general old age and widow insurance
Please note that when taken the tax measures that represent a waiver to pay the AOV/AWW and the turnover tax for the period April – June 2020 into account, the following should also be considered:
The AOV/AWW premiums are due by the employer and employee up to a certain amount and can be summarized as follows:
6.5% AOV/AWW premiums are due by the employee on an annual taxable income up to ANG 100,000. All taxable income received in excess of ANG 100,000 will be taxed with an additional 1% AOV/AWW premium due by the employee. This will remain unchanged. The indicated changes only relate to the AOV/AWW employer’s premiums.
9.5% AOV/AWW premiums are due by the employer on an annual income of ANG 100,000. The monthly maximum amount to consider for taxation is ANG 8,333.33 (ANG 100,000/12). Thus on a monthly basis, the maximum AOV/AWW employer’s premium for taxable income exceeding ANG 8,333.33 (ANG 100,000 /12) is ANG 791.67. If the employee’s taxable salary is less than ANG 8,333.33 then the 9.5% AOV/AWW employers’ premium calculated on the actual taxable salary does not need to be paid to the Tax Receiver’s Office for the period April – June 2020 for the designated companies/entrepreneurs as there is a waiver for the payment of AOV/AWW employer’s premium.
Initially, the basic deduction that is applicable to Curaçao residents was ANG 2,284 for the year 2020. Thus, a deduction to the wage tax payable of ANG 190.33 on a monthly basis. This will be amended with retroactive effect to January 1, 2020.
The basic deduction is applicable after the determination/calculation of the wage tax according to the (prescribed) wage tax tables (link: https://belastingdienst.cw/documenten/loonbelasting-2020/).
Currently – without the announced adaptation of the basis deduction – in principle only employees that have a monthly salary that exceeds ANG 1,996.67 (Thus ANG 1,955 + ANG 41.67) will start paying wage tax and employees that earn less than that, will effectively not pay wage tax on a monthly basis.
When the new amount of the basic deduction is made public, we will inform you thereof and will also analyze the impact of this deduction and share this with you.
Solidarity levy (tax)
During the press conference of 23 March 2020 of the Curaçao Government, the Minister of Finance also announced an introduction of a solidarity levy (tax). In this case, The Minister indicated that the levy will be introduced and is intended to help the ones that have been affected by the COVID-19 situation. The intention is that (all) individual taxpayers contribute to this fund. Furthermore, the Minister indicated that “the heaviest shoulders should carry the heaviest loads”. Please note that the solidarity levy has not been mentioned in the document circulated by our Government. As soon as we receive more information about this solidarity levy, we will provide you with an update.
Ministry of Social development, Labor and Welfare (abbreviation commonly used: “SOAW”).
Announcement Tax Authorities regarding adjustment services
The Tax Authorities and the Receiver’s Office announced that they will adapt their operations and have closed all their information desks and annulled all meetings. They requested to use the digital solutions and referred to the website of the Tax Authorities, being www.belastingdienst.cw or referred to some email addresses as indicated below and in the enclosed documents (available in Dutch and Papiamentu).
General email: [email protected]
Question regarding cribnumber or online account: [email protected]
Income tax: [email protected]
Wage tax: [email protected]
Turnover tax: [email protected]
Onroerend belasting: [email protected]
Profit tax: [email protected]
Receiver’s Office (Ontvanger)
General: [email protected]
Payments: [email protected]
Tax Audit Department (SBAB)
General: [email protected]
We trust to have informed you satisfactorily. If you have any questions in connection with the above, or any other tax questions, please feel free to contact us at 462 1200 or email us at [email protected]