WILLEMSTAD – Curaçao is set to adjust its tax policy in response to new international developments surrounding the OECD’s “Pillar 2” global minimum tax framework, with Minister of Finance Charles Cooper announcing a tailored approach aimed at maintaining the island’s competitiveness.
According to the minister, the government has decided not to introduce a Qualified Domestic Minimum Top-up Tax (QDMTT) for the time being. The decision follows consultations and research involving the financial sector, which indicated that such a measure could make Curaçao less attractive to international companies, particularly U.S.-based multinationals.
Instead, Curaçao will proceed with the implementation of the Income Inclusion Rule (IIR), which will apply retroactively from January 1, 2025. The rule is intended to protect local businesses from complex foreign tax regulations while also reducing administrative burdens.
The government has also opted to postpone the introduction of the Undertaxed Profits Rule (UTPR), citing limited expected benefits and the complexity of enforcing the measure effectively.
Minister Cooper emphasized that the chosen strategy reflects a balanced approach. The government aims to meet its international obligations while preserving Curaçao’s position as an attractive jurisdiction for international business.
Authorities indicated that global tax developments will continue to be closely monitored, with further policy adjustments to be considered if necessary.