The needed changes where approved in parliament in April which is the reason of the removal from the blacklist of the EU.
The European Union is closely following the steps of the Organization for Economic Co-operation and Development (OECD). In 2015, the OECD conducted an investigation on the fiscal regime that can harm and cause unfair competition among the organization’s members.
The conclusion of the investigation was that 3 fiscal regimes are creating the unfair competition and do not coincide with the rules of the OECD. The fiscal regimes are the San Nicolas Regime, the patent box of the new IPC regime and the Transparency of Corporate Vehicles. The EU reached out to the Government of Aruba to make the needed adaptations, since the consequences for not complying would be the listing on the blacklist as country allowing businesses to pay very little taxes or no taxes at all.
The Government has removed the patent box on the new IPC regime as per October 18, 2017 and abolished the San Nicolas Regime in October 2018 as requested by the EU, but has not managed to finish with the changes in the Transparency of Corporate Vehicles before the deadline of January 1, 2019. This was the reason for the EU to list Aruba on their blacklist of countries not cooperating with the fair fiscal system.
The needed adaptation within the “Algemene Landsverordening Belastingen” and Landsverordening Winstbelasting” have been approved by Parliament on April 4th 2019 and on the 10th of April 2019 the “Landsbesluit aanwijzing reële economische aanwezigheid transparante vennootschap” has been proclaimed. With the changes and decree, Aruba is complying with the rules that have been send to the EU to initiate the process of delisting from the blacklist.
The EU confirmed that the law and decree are EU compliant and on the upcoming meeting of the Finance Ministers of the EU on the 17th of May 2019, Aruba will be removed from the blacklist and will be among other countries that have a fiscal system that not promote unfair competition.