Published On: Tue, Sep 3rd, 2013

Discussions with Venezuela about treaties

Cur_VenWILLEMSTAD - - The financial sector of Curacao will have a meeting on Friday, September 6 in the auditorium of the Central Bank to brainstorm about the possibilities of any tax treaty (also called Double Tax Agreement i.e. DTA) with neighboring Venezuela.

A tax treaty is an agreement between two countries in which they agree how the levying of taxes is aligned with the primary aim to prevent international double taxation and fiscal evasion with each other. Tax treaties are part of the tax law and more particularly of international tax law.

The meeting next Friday will be organized at the initiative of the Curaçao International Financial Services Association (CIFA) and, according to chairman and former Prime Minister of Curacao, Ettiene Ys, the aim is to “start a public debate on a possible tax treaty with Venezuela”.

“Various financial experts from both Curaçao and Venezuela will shed light on this topic and discuss the pros and cons,” according to CIFA-director Gyselle Petronia.

The Curaçao Finance Minister, Jose Jardim, will open the seminar. He will be followed by Juan Navarro (Ernst & Young Dutch Caribbean), Leopoldo Escobar (Northon Rose Fullbright Venezuela), Gladys and Fred Rahbe Klaassen (PwC Venezuela and Dutch Caribbean) and Derk Scheltema (Amicorp Dutch Caribbean).

“Of course, the public discussion must prove what the assessment will be for any tax treaty with Venezuela, but as CIFA we find that such a scheme could be beneficial for Curaçao and therefore we are advocates,” Ys indicated. “Such a treaty could benefit the economic development of both countries. Normally, the fact is that if you come here as an entrepreneur from Venezuela you pay double taxation. That is also true for Curaçao entrepreneurs in Venezuela.” Curaçao has tax treaties with Norway, England, Netherlands and Suriname. The focus this time is especially on South America,”  Ys declared.

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