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Gaming Software News: Curacao Considers Increasing Income Tax for Online Casino Operators


It has been recently revealed that the government of Curacao has started proposing the legal amendments that will bring international gambling companies out of the New Haven e-Zone, a favourable taxation area.

For online casino operators, this means an increase in the tax rate from 2% to 22%.

Under the current law on supervising the gambling activities in Curacao, all the online gambling companies operate within the Curacao e-Zone.

The legislative changes may come into force from 1 January 2019. They will affect only those operators that have been registered in Curacao since July 2018. Those will be withdrawn from the e-Zone and will have to pay income tax of 22%. The tax rate, adopted in Curacao in 2016, is valid for all other companies operating outside the offshore zone.

The initiator of these changes is OECD (Organization for Economic Cooperation and Development) aimed at promoting democratic social and economic conditions around the world.

After the dissolution of the Netherlands Antilles in 2010, Curacao is considered an autonomous island territory within the Kingdom of Netherlands. And the Netherlands is a member of OECD. Among the activities of the Organization is to combat money laundering by stopping the practice of establishing offshore zones.

There is also value-added tax rate of 6% in Curacao. The VAT applies only to those operators providing gambling services to the residents of Curacao.

However, lawyers argue that there is no need to panic about new legislative initiatives, as the draft law has not yet been adopted. In addition, there still are legitimate ways to avoid a possible tax rate increase in Curacao.



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