Besides the accelerated depreciation (allowed for one third of the acquisition price of fixed assets, including buildings) and the investment deduction arrangement (8% of investment if an existing building is purchased and 12% if a new building is acquired or an existing building is improved), certain tax facilities are available to a number of sectors.

a. Hotels:

• A reduced profit tax -including additional charges- of at least 2% for a period of 11 years at the most.
• Exemption from import duties (including levies) on materials and on goods required for construction (includes expansions) and initial furbishing (i.e. capital equipment) of the hotel's premises. In the case of renovation, exemption for a two-year period from import duties (including levies) on materials and goods required for expansion, improvement and/or renewal. To qualify the limited liability company's investment in expansion, improvement and/or renewal should amount to at least US$ 165,000.
• Exemption for a period of 10 years from land tax on the hotel's premises after becoming taxable.
• Exemption from occupancy tax on the use of the hotel's land for a period of 10 years starting after the year of the start-up of the hotel.
• Exemption from personal income tax on income earned from dividends and other distribution of profits within two years after the fiscal year in which the profit was obtained. To qualify a limited liability company should invest at least US$ 550,000 in its construction and initial furbishing (includes expansions) within two years of the date of the Decree.

b. Manufacturing:

• A reduced profit tax -including additional charges- of at least 2% for a period of 11 years at the most, but at the latest for the year 2009. If at least 90% of the finished product is exported or used in the processing, treatment or assembly of new market products, respectively exported by a manufacturing company that exports 90% of its finished product, the enterprise may benefit from the above-mentioned reduced profit tax for a period of 15 years at the most, but at the latest for the year 2014. In this case, the limited liability company (in the non-oil industrial sector) that is established or purchased should invest at least US$ 550,000, procure at least five permanent jobs to persons born in the Netherlands Antilles and submit a cost-benefit analysis.
• Exemption from import duties (including levies) on materials, on goods required for construction (includes expansions) and initial equipment (of which the period may not exceed two years) of the industry's premises, as well as on packaging material, on machinery, raw materials, semi-manufactured articles and accessory means, necessary for the industrial process.
• Exemption from land tax on the industry's premises after becoming taxable for a period of 11 years at the most, but at the latest for the year 2009.
• Exemption from occupancy tax on the use of the industry's land for a period of 11 years at the most, but at the latest for the year 2009.
• Exemption from personal income tax on income earned from dividends and other distribution of profits within two years after the fiscal year in which the profit was obtained.
• To qualify the limited liability company (in the non-oil industrial sector) that is established should invest at least US$ 137,500 and procure a minimum of five permanent jobs to persons born in the Netherlands Antilles.

c. Land Development:

• A reduced tax -including additional charges- of at least 2% on the profit obtained by the sale of developed land for a period of 15 years at the most.
• Exemption from import duties on materials and goods intended for the laying-out of roads, on construction of real estate and on the laying-out or construction of locations for amusement purposes.
• Exemption from land tax as long as the plots of land, which are being developed, are not let out.
• Exemption from occupancy tax due to the use of the company's plots. The company is exempt from personal income tax on net revenues generated by the sale of developed land, if higher than US$ 5,500.


• Exemption from personal income tax on income earned from dividends and other distribution of profits within two years after the fiscal year in which the profit was obtained.
• To qualify the limited liability company should invest at least US$ 1,100,000 in development (excluding the value of the land) within five years of the date of the Decree.

d. Free Zone (E-Zone):

To qualify a legal entity with share capital must first be admitted to the economic zone (e-zone) in which international trade and trade-supporting services are performed. International trade activities refer to storing, assembling, processing and packaging of goods. Trade-supporting activities include maintenance and repairs in the e-zone of goods pertaining to companies doing business outside of the Netherlands Antilles, maintenance and repair of machinery and other equipment located abroad using goods stored in the e-zone, plus other international services. The latter includes warehousing and international trade-supporting activities, as well as other new international services that can be provided with or in support of electronic communication and information opportunities.

The following fiscal facilities can be obtained:

• A 2% tax -including surcharges- on the profit induced by exports up to and including December 2025;
• Exemption from turnover tax ("OB"), excises, import duties (including economic levies) in the case of import, transshipment or export;
• Employees who lived outside the Netherlands Antilles for more than 5 years can qualify for an expatriate status. In addition, the e-zone company may grant certain tax-free benefits to the employee;
• Upon request the Central Bank will grant an exemption from the payment of foreign exchange license fee charges for merchandise transactions.

e. Other Business:

• A reduced profit tax -including additional charges- of at least 2% for a period of 11 years at the most.
• Exemption from import duties (including levies) on materials and on goods required for construction and initial capital equipment (includes expansions) of the business' premises. In addition, exemption from import duties for a period of 10 years at the most on raw materials and semi-manufactured articles, as far as these components are processed by the company.
• Exemption for a period of 10 years from land tax on the business' premises, after becoming taxable.
• Exemption from occupancy tax on the use of the business' land for a period of 10 years starting after the year of the start-up of the business.
• Exemption from personal income tax on income earned from dividends and other distribution of profits within two years after the fiscal year in which the profit was obtained.
• To qualify the formation of the limited liability company should require an investment of at least US$ 137,500 -within two years of the date of the Decree- and procure a minimum of 5 permanent jobs to persons born in the Netherlands Antilles.

Dutch fiscal facilities

Established companies in the Netherlands that invest in Curaçao benefit from incentives like investment deduction, energy investment deduction, arbitrary depreciation, and fiscal environmental arrangements. In addition, the Dutch fiscal arrangement for small and medium companies (Tante Agaath Regeling) is also valid for private investors who extend credit in starting companies in Curaçao. The investor is exempt from capital tax and income tax.

Through the PSNA (Programma Samenwerking Nederlandse Antillen), subsidies/investment contribution will be granted to Dutch companies that want to invest in the Netherlands Antilles through a joint venture with an Antillean company.

Foreign investors can enter joint ventures with Dutch and local companies to take advantage (of amongst others) these incentives. Investment in, for example, the processing of oil waste or in the processing of fish from the Netherlands Antilles, Surinam, Guyana or Venezuela, as well as of agricultural products can benefit from the above-mentioned incentives. Other potential areas are: container, airport safety, logistics, steel construction, energy, telematics and wet contracting.

Trade agreements

Curaçao, as part of the Netherlands Antilles, benefits from the preferential trade arrangement concluded within the Council Decision of the Association of the Overseas Countries and Territories (OCTs) with the European Community. Most products can be exported duty-free to the EU, provided that rules of origin are accounted for. The benefits for Curaçao are lower now that the EU has established quotas for the importation of i.a. sugar and rice. The government is now analyzing the potential benefits of a closer relationship with the EU, under the so-called Ultra-Peripheral Status UPS (equivalent to the Departements d'outre-mèr of France).

In addition, Curaçao also benefits as part of the Netherlands Antilles from the unilateral preferential tariff treatment granted by the United States to 24 "beneficiary countries" qualifying under the 1983 Caribbean Basin Initiative (CBI) and under the 1990 Caribbean Basin Economic Recovery Expansion Act (CBI II), which was given new impetus with the Caribbean Basin Trade Partnership Act (CBTPA), effective since October 2000.

An important provision of the CBI II is permanent extension of the duty free treatment of most goods produced in a CBI country upon entering the US market if the product fulfills the following criteria:

• 1. It is imported directly from Curaçao into US customs territory.
• 2. It meets the 35 percent local value added requirement - only direct processing costs in one or more CBI countries are considered to be value added. US origin materials may be counted towards 15 percent of the 35 percent.
• 3. It conforms to the substantial transformation requirement, i.e., the final product should be new and different from the foreign materials used in its manufacture.
• 4. If components used in the processing in Curaçao are of 100 percent US origin, then requirement 2 and 3 will be omitted (for items other than textiles, oil and oil products).

Under the new Trade and Development Act passed in January 2000, apparel articles now can enter the US market free of duty and without quantitative restrictions. In addition to these apparel preferences, the CBTPA provides NAFTA-equivalent tariff treatment for certain items previously excluded from duty-free treatment under the CBI program.

Moreover, the Netherlands Antilles is an associate member of the Association of Caribbean States (ACS), an observer in the Caribbean Common Market (CARICOM), and, as part of the Kingdom of the Netherlands, a member of the WTO. As negotiations for the Free Trade Area of the Americas (FTAA) are proceeding, the Netherlands Antilles is analyzing the pros and cons of intensified trade with the Western Hemisphere.