WILLEMSTAD - As of April 1, 2023, the tax authorities will charge late payment interest for outstanding debts. This step by the tax authorities should motivate people with tax debt to pay off their outstanding debts as quickly as possible, Finance Minister Javier Silvania said in a press release.
“The tax authorities are allowed to charge interest on outstanding debts according to Article 11 of the Collection Ordinance of 1954,” said Silvania. The interest rate charged is the same as the statutory interest of 6.75 percent set by the Central Bank of Curaçao and Sint Maarten.
A transitional arrangement has been set up to allow people to get used to this new measure. All tax debtors who conclude a payment arrangement for their entire tax debt before July 1, 2023, and comply with all conditions applicable to the payment arrangement, will not owe this interest.
Only the nominal tax debt, including any fines, must then be paid. This also applies to employees who have a wage claim for the full tax liability. If the repayment obligation is not met or new tax debts are accrued during the term of the payment arrangement, interest will still be charged on the tax debt.