Tax advantage through web shop or internet company on Curaçao
For ad company that operates an e-commerce web shop or is otherwise active as an internet company, establishing in Curaçao can yield a lot of tax benefits. It is possible to have the products sold at the web shop (or have them transported) directly to the buyer, without the goods having to be physically present in Curaçao. By setting up a branch in Curaçao and managing from there the web shop or your internet company, thus you can obtain a tax advantage by using the low profit tax of 2% (E-zone) or even 0% (exempt profit tax).
Other advantages of a web shop or internet company in Curaçao
In addition to the tax benefit, web shops and other internet companies benefit from a number of other important advantages when establishing in Curaçao. The infrastructure in Curaçao has a large port, an airport and an extensive road network. The wage costs are another advantage: they are considerably lower in Curaçao than in Europe. Moreover, you can benefit from the connecting time zones of Europe and Curaçao, which means you can double your accessibility. In addition to Dutch and Papiamento, both English and Spanish are widely spoken in Curaçao. Curacao has a fast connection via the fiber optic cable Arcos-1. Not unimportant for web shops and other e-commerce companies is also the the modern e-commerce legislation in Curaçao..
Example web shop / internet company on Curaçao
Mr. De Jong is the owner of an internet company in the Netherlands (Private Limited Company). He wants to establish this company in Curaçao. The company deals with services via the internet. 80% of the services are aimed at the Netherlands, Belgium and USA, the remaining 20% is aimed at customers in Curaçao. This company can settle perfectly and make use of the exemption. The tax advantage due to the favorable profit tax rate applies to the 100% of the services that are aimed at abroad and locally. If the company were established in the Netherlands, a corporate tax of € 20,000 would have to be paid with a profit of € 100,000 achieved from activities aimed at countries outside of Curaçao. Due to establishment in Curaçao there is no profit tax on foreign profit. Local profit (obtained from sales in Curacao) is taxed at 22%.
Summing up the advantages of having an establishment in Curaçao
- Tax benefit: you only pay 2% (E-zone) or 0% profit tax instead of the corporate income tax in force in the Netherlands from 20 to 25%
- Excellent infrastructure: Curacao is easily accessible via the port and the airport; the connections on the island are also good
- Low wage costs: the minimum wage in Curaçao is approximately € 4.59 (NAF 9.18) compared to € 9.11 (January 2018) in the Netherlands
- Time zones: take advantage of the connecting time zones of Europe and Curaçao
- Language advantage: In addition to Dutch and Papiamento, English and Spanish are also widely spoken in Curaçao. Ideal for, for example, customer services and administration
- Excellent fiber optic connection
- Modern e-commerce legislation
Your web shop in Curaçao?
A considerable number of web shops are already benefiting from the favorable tax arrangements in Curacao.
Wondering if the establishing your web shop on Curaçao is interesting?
Feel free to contact us for more information about the tax benefits in your specific situation.
SmitsvandenBroek Adviseurs | Accountants has many years of experience in tax law and accountancy in Curaçao.
Our advisers know all tax options.