Willemstad:--- During recent conversations with the Curaçao Government, the Board of Financial Supervision of Curaçao and Sint Maarten (Cft) insisted that the issues within the Curaçao Tax Authorities must be addressed as soon as possible. Since 2021, the tax income has been increasing, partly due to the compliance measures that have been taken since then. However, there are a number of persistent issues. In order to maintain positive results, professional and honest Tax Authorities are of the utmost importance.
Since taking office in 2021, the Minister of Finance of Curaçao has been working on the improvement of tax compliance. When visiting the Tax Authorities and the Stichting Belastingaccountantsbureau, the Cft discussed the improvement actions within this trajectory. Despite the fact that good results have already been achieved, further professionalization of the Tax Authorities is a requirement to maintain and expand these results.
Reorganization Tax Authorities
In 2024, an investigation of the Stichting Overheidsaccountantsbureau showed that as regards the implementation of tax legislation, there have been cases of undue preferential treatment on the part of the Tax Authorities (Ontvanger). It was also determined that the legal framework is not being complied with. Not only does this affect the trust in the Tax Authorities, but it also carries risks for tax morality. There are advanced plans to reorganize and modernize the Tax Authorities. The CFT urged the Council of Ministers to prioritize this reorganization to the greatest extent possible since honest, transparent Tax Authorities contribute to a financially healthy Curaçao. In this context, the CFT also drew attention to the reform of the tax system. A reform also offers possibilities to increase compliance and therefore, increase income, which in turn creates opportunities to lower the high tax pressure that exists in Curaçao.
Budget 2025
Curaçao presents multiannual budget surpluses, mostly driven by the increasing tax income. The country is also making progress in the issuance of licenses to online gambling providers. This provides room to implement long-awaited reforms, for example in healthcare and social security. These reforms will benefit all residents of Curaçao. In this context, the Cft also drew attention to the further elaboration of the solution for the financial issues of the Curaçao Medical Center.
