TAXATION IN ARUBA
A source of income makes one subject to income tax
For Aruba tax purposes a resident private person is subject to income tax for its world wide income based on the Income Tax Ordinance. Also subject to Aruba income tax are private persons who are not a resident, but have a domestic source of income, like e.g. Aruba real estate. Residency depends according to the General Tax law on the “circumstances”, so no annual day-term is applicable for example.
Pursuant to the Profit Tax Ordinance, Aruba in principle levies profit tax on profits earned by corporate entities resident in Aruba and profits generated by a non-resident foreign company from an enterprise carried out through a permanent establishment located in Aruba.
Karel Frielink
Curacao-based Attorney (lawyer) / Partner
