Aruba Exempt Corporation (AVV)

The Aruba Exempt Corporation (AVV) is a corporation with limited liability. The AVV is incorporated by a civil law notary in Aruba who provides the deed of incorporation, after which a certificate of no objection of the Minister of Justice is required on the deed of incorporation and the articles of incorporation.

The AVV is represented by its managing director(s) and is legally required to be represented at all times by at least one legal representative. The legal representative is not a managing director and is a NV established and located in Aruba, whose objects include the representation of AVV’s, while in possession of the applicable business license.

All AVV’s, including offshore ones, are obliged to apply for a business license. The AVV is a company with a special tax regime which is often used for international tax planning purposes. If the activities are restricted to certain pre-defined areas, the profits generated with these activities are tax exempt on Aruba. The exempt company remains subject to corporate income tax, but its profits are exempt. If the exempt company does more than the pre-defined activities, the exempt company is subject to the normal corporate income tax rate of 25%.

Source: Chamber of Commerce and Industry Aruba.

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