Curacao Company – What are the main differences/advantages/disadvantages between the following
Curacao company – An Economic Zone Company
Curacao Company – E-zone companies established in a geographical area designated as an Economic Zone are subject to a profit tax rate of 2%. The free zone/ economic zone is an attractive option for companies doing business internationally and engaged in import and export of goods, processing of goods, trade and services, warehousing services, repair services and maintenance services either performed abroad or in Curaçao.
It is noteworthy that the goods traded do not need to be stored or enter the Curaçao territory which is often the case with activities supported by electronic communication (e-commerce), including online gambling. An exemption of import duties and turnover tax is in general applicable.
Curacao company – Curacao NV, BV company
Both the N.V. and the B.V. are regular companies in Curaçao. The N.V. is a public limited liability company while the B.V. is a private limited liability company. The main difference is that a large N.V. is subject to stricter rules with regard to the (audit) financial statements. Furthermore, the stock of the N.V. may be traded in a securities stock exchange while this is not possible with the B.V. An exemption of import duties and turnover tax is not applicable.
Curacao company – A transparent Company
The Transparent Company may engage in any type of international activities and is transparent for profit tax purposes as long as no permanent establishment is triggered in Curaçao. Through the use of a Transparent Company, the risks of operating a business may be limited. As the company is transparent for tax purposes, it will be treated as a partnership with the shareholders as the partners in that partnership. Therefore, the profit received by the company is deemed to have been received directly by the shareholders / partners according to their share in the profit of the company. The Transparent Company is commonly used to set up a joint venture. An exemption of import duties and turnover tax is in general not applicable.
On another hand, it is worth mentioning that Curaçao has another international special tax regime known as the Export Facility which may as well be of interest for you. We include details on this respect below:
Curacao company – Export Regime
The Export regime also applies to companies that are active internationally and it grants a beneficial profit tax rate of 3.2% as of 2016. The most important requirement is that 90% or more of the company’s business profit is derived from foreign oriented activities. The Export regime enables the same type of activities as the E-Zone, however, in addition banking and investment activities, financing and licensing activities are permitted. The Export regime is not limited to a specific geographic area.
The investor is free to establish internationally oriented businesses anywhere on the island in a property of choice. An exemption of import duties and turnover tax is not applicable.