Delay profit tax disastrous for financial sector

October 20, 2008 10:03 AM

The Curacao International Financial services Association (Cifa) says that further delay in the amendment of the National Ordinance Profit Tax is disastrous for the sector. There is still a long way to go to catch up with the lost time and get back in the top ten of international financial service center, says the Cifa.

“This is a unique chance to catch up with other jurisdictions.” Cifa says that the government can no longer wait. “It must happen now”.

Parliament-member Dwigno Puriel (MAN) has already asked Finance-minister Ersilia de Lannooy (PNP) questions about this bill on September 20 and wanted an answer no later than October 10, which didn’t come. Cifa says that these questions are appropriate, because the figures of the Central Bank show a considerable downward of the income from the international financial services sector.

Also the VBC is wondering why the amendment process of this law is taking so long (7 months); not enough manpower can no longer be the reason. The Cifa has also sent a letter to the minister on September 30 regarding an answer to Parliament, which answer is lacking.

Cifa says that the amendment is highly beneficial for the Antillean economy. The bill, once passed, will be of retroactive influence. The adjusted profit tax in combination with the recent TIEA signed with Spain will mean a dividend route with an effective dividend-tax load of 0 percent per January 1, 2009. “We are missing out on all these benefits if this law is not enacted before the end of this Year.”

(Source: National newspaper Amigoe)

18 October, 2008