WILLEMSTAD – Curaçao has decided not to introduce the Qualified Domestic Minimum Top-up Tax (QDMTT), a key component of the international OECD Pillar Two tax framework, in a move aimed at protecting the island’s attractiveness to multinational businesses.
The decision marks a significant policy shift by the government, which had previously been preparing to implement the full Pillar Two package as part of Curaçao’s alignment with evolving international tax standards.
Instead, the government will move forward only with the Income Inclusion Rule (IIR), and apply it retroactively from 2025.
Finance Minister Charles Cooper said the decision follows major international tax developments, particularly changes introduced by the Organisation for Economic Co-operation and Development (OECD) in its January 2026 Side-by-Side Package.
The OECD’s updated framework created new flexibility for countries navigating the implementation of Pillar Two, especially following adjustments related to the United States’ tax position under the global minimum tax system.
Pillar Two is part of a global tax reform effort designed to ensure multinational corporations pay at least a 15 percent minimum tax regardless of where they operate.
For many smaller international financial centers like Curaçao, the introduction of a domestic top-up tax raised concerns about competitiveness.
By skipping the QDMTT, Curaçao avoids creating an additional local tax burden for multinational enterprises operating on the island.
Government officials say the revised strategy aims to strike a balance between international compliance and maintaining a competitive investment climate.
Officials also stressed that Curaçao remains committed to meeting international tax obligations while reducing administrative and compliance burdens for both government and businesses.
The government says it will continue monitoring international developments and remains open to adjusting its policy if global tax rules shift again.
For Curaçao’s financial services and international business sector, the decision is being viewed as an important signal that the island wants to remain competitive in an increasingly regulated tax environment.