When calculating Curacao taxable income, assets owned by an enterprise must be depreciated over their normal useful life using the straight-line method. The following are the applicable rates for various asset types.
|Buildings||2 to 2.5%|
|Plant and machinery||10%|
|Motor vehicles||10 to 33%|
|Office equipment||10 to 50%|
Fixed company assets acquired by companies operating in Curacao may qualify for accelerated depreciation at a one-time maximum annual rate of 33⅓% of the acquisition costs of the assets.
An investment allowance deduction is granted for acquisitions of fixed assets by companies operating in Curacao at the rate of 8% of the acquisition cost of the asset, or 12% for new buildings or restorations of buildings. The allowance is deducted from taxable income in the year of the investment and in the following year.
The investment allowance deduction is recaptured if the asset is sold within 6 years (15 years for buildings) of the date of the acquisition.