Introduction
Electronic business has become one of the biggest opportunities or threats
to many businesses, as it changes the way most businesses are conducted. Any
company that is involved in the production, distribution or sale of
electronic products and services (including the sale of digital material
such as computer software and electronic banking) or physical merchandise is
facing changes that cannot be ignored.
As of April 1, 2001 the E-zone legislation has entered into force. The Ezone
legislation should be seen as an incentive for e-commerce companies to
(re)locate their activities to Curaçao . The E-zone legislation provides
(e-commerce) investors a variety of (tax saving) opportunities. This
brochure contains general information regarding the E-zone legislation and
highlights the tax facilities for e-commerce companies that are located in
one of the appointed E-zone areas.
What is an E-zone?
An E-zone is an area within Curaçao in which, amongst others, international
trade and trade supportive services may be performed supported by ways of
electronic communication and information equipment (e-commerce).
Who may perform activities in an E-zone?
Only legal entities with a capital divided into shares may perform
activities in an E-zone. The activities of these companies must in principle
be focused on trading or providing services to companies located outside
Curaçao . However, conducting business with other companies also located in
an Ezone is also allowed. If business is conducted with companies located in
Curaçao the company has to file a request with the competent authorities.
Any turnover generated through local business may not exceed 25% of the
total turnover in order to safeguard the E-zone status.
Procedures to enter into the E-zone
Admission to the E-zone will only be granted if activities are performed as
described above (under "What is an e-zone"). A request should be filed with
the local authorities in order to be admitted. The local authorities are
entitled to impose special conditions and restrictions to the entrance
permit.
Profit tax
The profit of an E-zone company will be taxed at a flat tax rate of 2%
(surtax included) until January 1, 2026. This 2% rate is not applicable on
that part of the profit of an E-zone company, which is generated through the
sale of goods or services to companies located in Curaçao or generated
through rendering of services to affiliated companies located in Curaçao .
Import duties and turnover tax
No import duties and turnover tax is due on goods entering the E-zone and
services rendered by a Curaçao company to an E-zone company. Furthermore, no
import duties and turnover tax is due on products delivered to or services
rendered to other companies located in the E-zone or outside Curaçao .
Supervision
The local authorities will see to it that E-zone companies meet the
conditions as stated in the E-zone legislation. If it appears that a company
is located in the E-zone, whilst not fulfilling the conditions, penalties
can be imposed on the respective company or the entrance permit can be
withdrawn.
Contact PMP (Curaçao)N.V.
If you are interested in establishing a Curaçao e-zone company, or would
like further information, please contact our offices via email
(info@pmpgroup.biz) or call us at (+599) 9 737 0754.
Disclaimer:
The information contained in this memorandum is of a general nature only and
should not be construed as legal or tax advice. Readers should obtain
appropriate professional advice before setting up any structure. If
required, PMP can refer readers to a panel of reputable tax- and legal
advisory firms.
E-zone Company