Compliance with payroll tax payments and BBO/BAVP/BAZV needs to improve

ORANJESTAD – According to figures from the Tax Department, the companies that submitted their payroll tax returns and BBO/BAVP/BAZV between January and June 2022 did not pay the amounts corresponding to their tax returns or have not complied with these payments on time.

Consequently, the Tax Department issued additional penalties for non-payment.

The payroll tax figures also include the AOV/AWW and AZV premiums. These are fees withheld by the employer but did not pay them to the tax department. Payment of these taxes and social security premiums is the responsibility of the employees, but their employers do not transfer it to the tax authorities.

BBO/BAVP/BAZV payments is the applicable tax rate of 6% on business revenue sum not paid to the tax department by non-compliant companies. Next, an overview of non-compliance corresponding to the filed taxes.

Additional assessments for wage tax, AOV/AWW and AZV premiums from January to June 2022
Number of taxpayers who received an additional assessment 1.237
Number of additional assessments 6.986
Total amount of assessments Afl. 18.8 millions
Additional collections from BBO/BAVP/BAZV period January to June June 2022
Number of taxpayers who received an additional assessments 1.489
Number of additional assessments 6.558
Total amount of additional assessments Afl. 15.7 millions

Building DIMPIt is essential to mention that there are consequences for taxpayers who do not comply with their tax duties. These consequences include additional charges, high penalties, and unnecessarily higher amounts of interest. These additional expenses can put merchants and/or companies in situations that are difficult to overcome. That's why ignoring your tax duties is not an option.

Compliance with the declaration and tax payment is the taxpayers' responsibility, and not of the Tax Department. Whether it entails an individual, an employer, a small merchant, or a large company, it is their fiscal responsibility. 

All merchants must file their taxes monthly through the portal "BO Impuesto" (BOi). Merchants who have not yet registered as users should do this as soon as possible. They can make their appointment through the following link

For more information about the portal, you can call 522 7437 or send an email to boi@impuesto.aw. Merchants who are not filing their income taxes (payroll tax or income tax), can contact the Tax Department by calling 522 7424 for guidance.

The Tax Department is here to help the taxpayer comply with their tax duties through the digital system of Bo Impuesto, where they must make their monthly declarations of BBO/BAVP and BAZV, payroll tax, and AOV/AWW and AZV premiums.

At the same time, the tax department provides essential information regarding payment deadlines through its website www.impuesto.aw, its Facebook page, and press releases. Thus, the Tax Department tries to clarify any doubts that taxpayers may have and answer any questions regarding tax payments.

Finally, the Tax Department wants to thank all the merchants who comply with their fiscal duties for payroll tax, AOV/AWW/AZV, and BBO/BAVP/BAZV premiums. At the same time, the Tax Department urges non-complying merchants to take responsibility and attend to their tax duties. We must all demonstrate the importance of complying with tax duties and contributing to the well-being of all who live and work in Aruba.

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