February 9, 2022
Additional rules were published on R&D-declarations, which should allow the Bureau of Telecommunication & Post (“BTP”) to issue R&D-declarations to taxpayers with research and development activities in Curaçao. Subsequently, taxpayers can apply the innovation box regime for Curaçao profit tax purposes if conditions are met. Income allocable to the innovation box is taxed at 0% profit tax. Our Tax Instant News on this development can be found here.
Below we included a high-level checklist that can be used to conduct a preliminary internal assessment to review if your company is eligible to obtain an R&D-declaration and, if obtained, can apply the innovation box regime for profit tax purposes in their annual profit tax return.
If the answer to all of the above questions is ‘yes’ (insofar applicable), it is recommended to review in more detail if an R&D-declaration can be obtained and if application for the innovation box regime for profit tax purposes is a possibility for your company.
As the published rules have retroactive effect to July 1, 2018, it may still be possible to apply the innovation box as of 2018 when final tax assessments for 2018 and following years have not been issued yet or objections can still be lodged.
Please note that the application for a R&D-declaration should be submitted within 3 months after a project is completed. In case the project was completed between July 1, 2018 and February 4, 2022, applications should be submitted before August 6, 2022.
We are available to discuss the potential application of the innovation box and any questions you may have. Please feel free to reach out.