FUNDS IN THE NETHERLANDS ANTILLES (III)
How can the fund industry benefit from the tax legislation?
In the Netherlands Antilles it is possible to reach an agreement with the tax authorities with respect to the tax regime that will be applied to a specific company. Standard tax-rulings are available for corporations structured as funds. Most (hedge) funds will qualify for a tax exempt status. Obtaining a tax ruling is a routine matter and is generally available within a couple of weeks.
The Netherlands Antilles do not levy withholding tax on dividends or on royalties. A withholding tax on interest on savings accounts of individuals resident in the EU has been introduced in line with the EU savings directive as has been implemented by for example Luxembourg, BVI and Guernsey and Jersey. The implication of the EU Savings Directive in Europe and a lot of other countries are burdensome for funds and administrators. As opposed to e.g. the Cayman Islands, funds established in Curaçao do not qualify as UCITS and therefore there is no need to withhold on redemption or pass client information to tax authorities in third countries.
Karel Frielink
Attorney (lawyer) / Partner
If taxes are negotiable; how does the electorate hold its politicians accountable? Are basic goods and services increased if the perception of a tax haven exist?
Thank you for your response. “Taxes” as such are not negotiable. Only if a fund meets specific criteria, it will qualify for a tax exempt status. Tax rulings are granted in accordance with strict rules only, but once the criteria are met, obtaining one is a routine matter.
Karel Frielink
Attorney (lawyer) / Partner