CIFA welcomes new legislation
WILLEMSTAD - The Curaçao International Financial Services Association (CIFA) welcomes the new export facility legislation. This was approved by the Parliament on December 16 and is expected to come into force on January 1, 2014. In addition to signing an agreement with Malta on a tax treaty and the tax agreement between Curacao and the Netherlands, it has again put a major step towards building and strengthening the international financial sector, according to the CIFA.
“Besides the fact that the export facility contributes to the development of the sector, it also offers an alternative to a lot of the businesses that still use the old offshore facilities, such as the international banks. This new product will prevent companies from moving their operations to other jurisdictions. Moving operations has a negative effect on Curaçao as an international financial center and the financial situation of the island will decline because of the loss in tax revenues from these activities. Not every business can benefit from the export facility. An important condition of the new system is that 90 percent or more of the company's business must be focused on overseas. Secondly, there must be substance. This means that there must be a real presence of the company in Curaçao and it must be consistent with the nature and scope of its activities.”
Besides the export system, Parliament has also approved a draft bill on the same day, "which aims to make Curaçao more attractive to insurance companies that operate internationally, including the so-called captive insurance companies.
The bill has yet to be approved by the Council of Ministers and submitted with an advice from the Advisory Council, but it is expected that this proposal will still be implemented soon.