Curaçao: Tax Transparency Notice

What the client is asked to certify

At onboarding, the client and every controlling person behind it certify each jurisdiction of tax residence and the taxpayer reference issued there. The certification is read against the rest of the file, and a correspondence address, a settlement account or a place of birth pointing somewhere else has to be reconciled before the account opens. A client tells the firm within 30 days of a change in its residence, and the Curaçao entity requests a fresh certification whenever a change of circumstances shows up in the file. A mandate does not open on an unresolved certification, and a certification that cannot be reconciled closes the account.

What is reported, and to whom

Where an entity in the network is a reporting financial institution, it reports the accounts of clients resident in participating jurisdictions to its own competent authority, which forwards the data to the authority of the client's residence. What is reported is the account holder, the controlling persons, the account identifier, the balance at the year end and the gross amounts credited during the year. Reporting is annual and runs to the deadline the local authority sets. A client may ask IGUAKO Capital (Curaçao) N.V. for a copy of what was reported about it, and the copy is provided.

The local charge to tax

Each domicile has its own charge to tax, its own filing calendar and its own reporting obligations, and the group tax function keeps one return calendar covering all 28.

The Curaçao entities pay the jurisdiction's profit tax on their income at the standard rate and claim no special regime. Dividends received from Latin American positions and paid onward to the Amsterdam entity fall under the arrangement between Curaçao and the Netherlands on the taxation of flows within the Kingdom, and the reduced withholding that arrangement provides is conditional on the substance the desk maintains. Each entity files an annual profit tax return and a substance declaration. The entities hold no financial accounts for third parties and are therefore not reporting financial institutions for the automatic exchange of account information; the co-lender is reported by the Amsterdam lender under its own obligations.

Transfer pricing on funding, services and licences between Curaçao entities and the rest of the group is documented each year and reviewed by the Group Head of Tax before the return is filed, alongside the returns of the other Caribbean entities.

What the firm will not do

The firm refuses a mandate whose purpose is to hide ownership, income or residence from an authority entitled to know it. It declines a request to invoice a party other than the one that received the service, to route a payment through an entity with no part in the transaction, or to describe a distribution as something it is not. Contracts with introducers, agents and other associated persons carry a clause forbidding facilitation, a right to ask how the work was done and a right to end the appointment on notice. The firm gives no tax advice, and the team in Willemstad says so in writing before the first mandate is signed.

A structure that works only because a tax authority cannot see it is not a structure the firm will build. Where a client wants a view on its own position, the firm asks it to take that advice independently and records on the file that it did so.