Draft National Ordinance Minimum Tax (Curaçao)
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On 18 December 2025, the draft National Ordinance on the Minimum Tax was presented to the Parliament of Curaçao.
Introduction
The draft National Ordinance Minimum Tax introduces, by means of a separate Ordinance, a minimum tax intended to ensure a global minimum level of taxation for multinational groups. This Ordinance aims to limit possible tax competition and tax avoidance.
Purpose of the Proposed Legislation
The draft National Ordinance implements the Pillar Two measures, which introduce a global minimum tax for multinational groups. These rules require groups with a consolidated annual turnover of EUR 750 million or more to pay a minimum effective tax rate of 15% on their profits. If a group pays less than this minimum rate in a particular jurisdiction, a top-up tax will apply to bring the effective tax rate up to 15%.
Separate Tax Ordinance
The OECD allows jurisdictions to implement the Pillar Two measures either as part of their existing profit tax system or through a separate tax Ordinance. Curaçao has chosen to implement these measures through a separate tax Ordinance, which will operate alongside the National Profit Tax Ordinance 1940.
Top-up Taxes
The OECD Model Rules provide for three types of top-up taxes. One of these is the qualified domestic top-up tax, which allows Curaçao to levy additional tax on low-taxed group entities established in Curaçao, ensuring that their effective tax rate reaches 15%. Another is the income inclusion rule, which applies to low-taxed group entities and, where applicable, to the low-taxed parent entity and its group entities within the same jurisdiction.
Under the current draft, the minimum tax applies to multinational group entities established in Curaçao. Where the effective tax rate falls below the minimum of 15%, the shortfall will be collected through either the qualified domestic top-up tax or the income inclusion rule.
Taxpayer
A low-taxed group entity established in Curaçao is subject to the domestic top-up tax. Where multiple low-taxed group entities are established in Curaçao, the tax is calculated as if they constitute a single taxpayer, by aggregating their qualifying income.
Under the income inclusion rule, the minimum tax is generally levied at the level of the ultimate parent entity. This is the entity that prepares the consolidated financial statements and is not controlled by any other entity.
Safe Harbour Rules
The current draft includes both temporary and permanent safe harbour rules. These rules are intended to reduce the administrative burden for multinational groups. In essence, they allow a group to apply a simplified calculation, based on existing data, rather than performing a full and detailed Pillar Two calculation.
Compliance
Under the current draft, the top-up tax is payable on return. The top-up tax information return must be filed within 18 months after the end of the first fiscal year, and within 15 months for the second and subsequent fiscal years. The tax return must be filed, and the top-up tax must be paid, within 20 months after the end of the first fiscal year, and within 17 months for the second and subsequent fiscal years.
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