The application deadline for the small entrepreneur's scheme or KOR 2023 is October 3, 2022

ORANJESTAD - The Tax Department is reminding all small business owners who want to qualify for the small business allowance or KOR (kleineondernemersregeling) that Oct. 3, 2023, is the deadline to apply. 

 KOR benefits:

  • You do not have to pay BBO/BAVP/BAZV monthly;
  • you do not have to file monthly BBO/BAVP/BAZV returns;
  • entrepreneurs can use the money within the company;
  • less administrative work.

Who is eligible for KOR?

To qualify for the KOR, you must meet the following conditions:

  • You are a natural person, and you live in Aruba, or established in Aruba, or you have a permanent establishment in Aruba;
  • You are the owner of a company (sole proprietorship);
  • your business turnover in the calendar year is Afl. 84,0001 or less;
  • you can prove that your business turnover in the past year was Afl. 84,000.00 or less.

If you have more than one business, then the combined turnover of all your businesses is calculated.  

You do not qualify for KOR if you operate one or more of one or more properties for non-residential use, for example, renting out a property used as an office.     

Small Business Arrangement (KOR)Apply online

You can only submit the request electronically through the website www.impuesto.aw. Choose Digitale formulieren -> kleineondernemersregeling and follow the instructions. You must upload the following documents: 

  • A clear scan or photo of your valid passport, driver's license, or ID card;
  • The 2021 financial statements of your sole proprietorship;
  • The proof of registration with the Chamber of Commerce;

The Tax Department will review your request. Only the entrepreneurs who meet the requirements will receive the KOR. After the evaluation, you will receive a decision on the granting or rejection of your request in response via the same email with which you submitted your request.  

Deadline to submit return forms.

Businesses with KOR status in 2022, do not need to apply for 2023 but must file their annual return in December 2022/January 2023. The last filing date for your return (online) is Jan. 16, 2023. The tax inspector can then evaluate whether your business turnover for 2022 exceeded the amount of Afl. 84,000 and if you are eligible for KOR in 2023. Failure to file your annual return will automatically result in your business losing KOR status. It will result in the small business owner having to file monthly BBO/BAVP/BAZV forms and make monthly payments like any other regular business.

Small business owners who lost their KOR status in 2022 and meet the conditions can apply for KOR 2023.

The small business allowance is a tax scheme that benefits all small business owners who meet conditions. The Tax Department recommends small business owners take advantage of this scheme to avoid paying BBO/BAZV/BAVP for 2023.

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