background image

Aruba Issues Ministerial Decision on Turnover Tax Exemptions — Orbitax Tax News & Alerts

Aruba has published Ministerial Decision on exemptions in relation to the recent introduction of the crisis levy (BAVP) and the removal of certain prior exemptions effective 1 July 2018 ({News-2018-07-11/A/2-previous coverage}). BAVP is charged in addition to the business turnover tax (BBO) and the health tax (BAZV). The Ministerial Decision includes exemptions from BAVP, BBO, and BAZV on:

  • Turnover generated by authorized credit institutions through foreign exchange transactions and through payment transactions by means of credit/debit cards in Aruban florins or foreign currency;
  • Turnover (commissions) generated by insurance brokers or agents (intermediaries) through the conclusion and execution of insurance contracts when the insurance contract is entered into with an Aruban insurance company (if with a foreign insurance company, BAVP, BBO, and BAZV is due on the commission); and
  • Turnover in relation to insurance products for which a maximum price has been set by the Aruba insurance authority, including mandatory liability insurance.

The exemptions are effective 1 July 2018.