WILLEMSTAD – The Social and Economic Council (SER) of Curaçao has advised the government to exercise diplomatic caution when implementing new tax legislation, particularly in light of shifting U.S. policies under a possible renewed Trump administration. 

The advice specifically concerns the proposed 2024 National Ordinance on Minimum Taxation. This draft law introduces a 15% minimum tax on multinational corporations with global revenues exceeding 750 million euros, in line with international OECD standards. 

However, the SER warns that the United States has withdrawn its support for the OECD agreement under its current administration. This move could significantly weaken the effectiveness of the global minimum tax and potentially create economic and diplomatic tensions with the U.S. 

Given these geopolitical uncertainties, the SER recommends that Finance Minister Javier Silvania (MFK) maintain flexibility in the rollout of the legislation. This includes considering exemptions for certain companies and implementing the law in phases, should international conditions demand it. 

Despite these concerns, the SER remains broadly supportive of the proposed ordinance. It praises the legislation as a technically sound and well-aligned response to international tax norms, featuring precise definitions, robust calculation methods, and safeguards against abuse. 

Still, the Council takes a closer look at evolving U.S. policy and notes the reintroduction of the Defending American Jobs and Investment Act in Congress. The act aims to protect U.S. businesses and workers from what it calls “unfair foreign tax practices” and authorizes retaliatory tax measures against countries that violate U.S. standards. 

In light of this, the SER suggests Curaçao should carefully assess whether to apply the new law to U.S.-based multinationals at all. “The government should consider whether to exclude American companies from the law’s scope,” the advisory states, “and determine the extent to which U.S. entities are part of the multinational structures operating on the island.” 

As Curaçao seeks to align with international standards, the SER underscores the importance of balancing fiscal reforms with diplomatic realities — particularly with major trading partners like the United States.