WILLEMSTAD – The Curaçao Tax Office had an outstanding collection balance of over 3.2 billion guilders as of December 31, 2024, according to the agency’s management report for the year. This figure represents overdue tax revenues that have yet to be collected.
Over the past year, the outstanding amount increased by six million guilders. The total includes not only final tax assessments but also imposed assessments that are still subject to appeal or objection.
Approximately 90% of the outstanding amount is considered collectible, spanning various tax categories such as income tax, corporate tax, and sales tax. The significant backlog in tax collections poses a challenge to the country’s financial stability.
IMF Findings on Tax Collection Issues
The difficulty in collecting overdue taxes has been a long-standing issue for the Curaçao Tax Office. A recent report from the International Monetary Fund (IMF) highlights particular problems in corporate and income tax collection, where payments are frequently delayed, and effective penalties for non-compliance are lacking.
According to the IMF, there are no structured procedures in place to ensure timely tax collection. Many taxpayers file their returns late or fail to pay altogether, often without facing any consequences. The lack of a well-functioning collection system has led to a growing backlog, with no clear strategy to address the issue.
The report underscores the urgent need for structural reforms in Curaçao’s tax administration to improve efficiency and enforcement, ensuring that overdue taxes are properly collected and that financial stability is maintained.