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NEWS ALERT - JANUARY 2010

Spain- Netherlands Antilles

On January 27, 2010 the bilateral Tax Information Exchange Agreement (TIEA) between The Netherlands Antilles and Spain came into force.

The TIEA has the following two major tax advantages:

1.   As a direct consequence the Netherlands Antilles shall NOT be considered as a tax haven en thus The Netherlands Antilles shall be excluded from the Spanish "black list" of tax have jurisdictions.

2.   The TIEA provides for the possibility to set up new corporate structures whereby dividends from countries in the European Union and dividends from non-EU countries with which Spain has concluded a bilateral tax treaty, can be distributed and received in a tax efficient manner. This means, under certain conditions, with zero income or withholding taxation.

 

NEWS ALERT - NOVEMBER 2009

I. OECD WHITE LIST

In September 2009 the Organization for Economic Co-operation and Development (OECD) placed the Netherlands Antilles on the OECD WHITE LIST thus giving an enormous positive boost to the international reputation and acceptance of the Netherlands Antilles as a financial offshore center.

II. DUTCH CARIBBEAN SECURITIES EXCHANGE (DCSX)

It is expected that late 2009 the Dutch Caribbean Securities Exchange (DCSX) will become operational in Curacao. The purpose of the DCSX is to become an international securities exchange with a time and cost efficient transparent listing for international and regional corporations and investment funds. It goes without saying that such a listing can add substantial substance to entities resident in the Netherlands Antilles.

III. TAX EXEMPT COMPANY (TEC) AS ROYALTY COMPANY

Since its introduction in 2000 the Netherlands Antilles TEC has enjoyed an exemption from profit tax for certain qualifying financing activities and for certain qualifying investment activities. The TEC may now also enjoy an exemption from profit tax for qualifying come derived from owning and licensing intellectual property rights, e.g. film rights.

IV. PARTICPATION EXEMPTION

The participation exemption regime has been fine tuned to be more in accordance with the OECD guidelines. However the new legislation still provides for a 100% exemption for all qualifying participations, now also including income from a qualifying permanent establishment or permanent representative.