Changes Free Zone regime 2013
On July 1, 2013 the Minister of Finance, Communications, Utilities and Energy, Mr. Mike de Meza, published beneficial policy changes for certain taxes in anticipation of the amendment of the respective State Ordinances.
The Free Zone legislation has also been changed on the folloing points and is effective as of July 1, 2013:
Facilitating designation of a free zone area
It will be easier to designate areas as a free zone, with or without Customs control.Free Zone service companies can already establish elsewhere on Aruba with approval from Free Zone Aruba (FZA) NV and tax authorities. Specific rules and regulations apply.
Changes local sales
For certain types of activities the local sales norm has been changed. It is allowed to sell 25% of the total turnover to the local market in the case of goods. For certain types of activities (that fit in the Gateway concept and promote sustainable development) local sales can be increased up to 50% of the total turnover. Sectors that may use this incentive are: sustainable energy, sustainable food supply, medical tourism, sustainable transportation, aviation companies, shipping companies and/or maintenance, repair and refurbishment activities.
In specific cases the 50/50% norm can be expanded. If the companies’ activities are highly beneficial for the local population, exceptions can be made. For example business activities that lead to lower utility tariffs, better medical services, improved waste management and/or decreasing food prices.
Exemption dividend tax
Companies established in the Aruba Free Zone, will be exempted from dividend tax.
Freezone Facility Charge (FFC)
Earlier this year the free zone facility charge decreased form 1.12% to 0.75%. Within the new tax regime, a new bracketed system will be introduced with an FFC rate that decreases alongside a growth in turnover. See table below
Turnover in Florin FFC
0 – 100.000.000 0.75%
100.000.001 – 150.000.000 0.20%
150.000.001 – 200.000.000 0.10%
200.000.000 and up 0.01%
Aruba is an attractive location for foreign investment due to its geographic location, transportation network, attractive fiscal tariffs, safety and security, political stability, multilingual population, etc. The free zone is of great importance for positioning Aruba as a hub for companies wishing to enter the international market.
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