Taxation in the Dutch Caribbean islands

10 October 2016
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Priscilla Lachman
IBFD + Tax Consultant IBFD Regional Editor & Tax Consultant in the Caribbean countries

The islands; Bonaire, Saba and St Eustatius became special municipalities of the Netherlands on 10 October 2010 and are now part of the Netherlands.

As per 1 January 2011, the Dutch Islands implemented a new and simplified tax system. It is a different tax system than that of the Netherlands, but still the Islands are an official part of the Netherlands.

The tax system on the islands do not have a profit tax and have tax management/planning potential. There is also no VAT but a general expenditure tax.

The tax system consists of as many general tax measures as possible, making it easier for both individuals and businesses to comprehend. Tax rates have also been lowered and the number of taxes levied by government will be kept to a minimum.

The Dutch islands are an interesting option for company structuring and are not listed as a tax haven. Need more information, please contact me.