Taxes
How high are the corporate income tax in Aruba?
An Aruba offshore company («AVV») is exempted of taxation.
In order for the profits of the AVV to be tax exempt, the activities should restrict itself to one or more of the following:
- Holding of shares, provided that the entities in which the shares are held, are subject to a tax rate of at least 12.5%
- Financing including hedging, financial lease, treasury and cash management. Excluding being a credit institution, of enterprises and entities
- Investments
- Licensing of intellectual and industrial ownership rights, similar rights and usage rights. It is explicitly not allowed to develop these rights in an exempt company
- Captive Insurances
- Any other activity is taxed at a corporate income tax rate of 25%.
What Double-tax treaties has Aruba?
Aruba is part of the Kingdom of the Netherlands and therefore is included in its double taxation agreements and tax information exchange agreements.
Albania, Algeria, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Bermuda (limited treaty), Bosnia-Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Ghana, Great Britain, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Iraq, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kenya, Korea, Kosovo, Kuwait, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, North Macedonia, Malawi, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Surinam, Sweden, Switzerland, Taiwan, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United States of America, Uzbekistan, Venezuela, Vietnam, Zambia, Zimbabwe
Status: end of 2020