THE NETHERLANDS ANTILLES PRIVATE FOUNDATION
The Private Foundation can be used for tax planning and asset protection
The Netherlands Antilles Private Foundation has been introduced in the Netherlands Antilles Law through the National Ordinance Regarding Foundations as published on October 31, 1998. Since March 1st, 2004, these rules are laid down in Book 2 of the Civil Code.
The Private Foundation possesses corporate personality but does not have a share capital. The Private Foundation is incorporated by deed executed before a Netherlands Antilles public notary and is registered in the Register of Foundations at the Chamber of Commerce.
The object of the Private Foundation may include a number of activities, and is therefore not limited to a charitable purpose, provided however that the Private Foundation does not conduct a real business or run an enterprise for profit. As laid down in Book 2 of the Civil Code, the Private Foundation does not run an enterprise if it is engaged in investment activities or holding activities (to certain limits) or operating as a silent partner in a limited partnership.
The Private Foundation is exempt (objective) from local profit tax provided however that the Private Foundation does not conduct a real business. It is always recommendable to consult a tax advisor in case there are some doubts if a Private Foundation conduct a real business or not.
Karel Frielink
Attorney (lawyer) / Partner
