Pillar 2 update: Legislative development in Curaçao

February 27, 2026

Introduction
As previously communicated (see this article), the Government of Curaçao has formally submitted the draft National Ordinance[1] implementing the OECD Pillar Two Global Minimum Tax (hereinafter referred to as “Pillar Two”) to the Parliament. The draft of legislation submitted has been published on the Parliament’s website. This draft include amendments of the draft legislation published on December 27, 2024, to better align with the OECD GloBE Implementation Guidelines and also addresses technical considerations raised regarding alignment with international implementation standards, including the recently published OECD Side-by-Side Package (see this article), which provides further technical guidance on coordinated GloBE implementation. For example, the revised draft provides that no domestic top-up tax will be levied on a low-taxed Curaçao group entity to the extent its qualifying income is not subject to a qualifying IIR or UTPR in another jurisdiction. This means Curaçao intends to not apply the Qualified Domestic Minimum Top-Up Tax (QDMTT) for these entities.

This development represents a significant step in the domestic legislative process and confirms that Curaçao is actively progressing towards implementation.

Based on the consultation rounds, it can cautiously be inferred that the Government intends to proceed with the implementation of Pillar Two in Curaçao. However, the precise form and structure of the domestic regime remain subject to policy choices. In particular, the manner in which each jurisdiction implements the GloBE Model Rules into domestic legislation will determine the practical scope and impact of the regime. Relevant considerations include the potential introduction of:

• a Qualified Domestic Minimum Top-Up Tax (QDMTT);
• an Income Inclusion Rule (IIR); and/or
• an Undertaxed Profits Rule (UTPR).

The objective of this article is not to elaborate on the technical functioning of these mechanisms. It should, however, be emphasized that the chosen top-up tax mechanism will directly influence the number of Curaçao entities in scope and whether any top-up tax is levied domestically or in other jurisdictions.

Should the domestic Pillar Two legislation be enacted with the currently intended retroactive effect, the first reporting and filing obligations would likely relate to fiscal year 2025. Accordingly, the filing due date of the first top-up tax return is expected to be June 30, 2027, subject to the final legislative framework and transitional provisions. Given the extensive data collection, modelling, and documentation requirements associated with GloBE compliance, early preparation will be critical for in-scope groups (multinational groups with consolidated revenues amounting to at least EUR 750 million) to meet the applicable deadlines. These groups are advised to initiate their Pillar Two readiness assessments without delay.

Pillar Two compliance presents significant technical and operational challenges, requiring close coordination between tax, accounting, and legal functions. Our tax professionals and lawyers are closely monitoring the Curaçao implementation process and the evolving OECD guidance. We can assist clients with:

• GloBE impact assessments and scoping analyses;
• Effective Tax Rate (ETR) modelling and scenario planning under GloBE;
• GloBE compliance preparation and internal governance structuring; and
• Engagement with the tax authorities on technical interpretations and filing positions where necessary.

We recommend that potentially affected groups begin their readiness assessment as soon as possible. Should you have any questions regarding the potential impact of Pillar Two on your Curaçao operations, we would be pleased to assist.

This publication is provided for general informational purposes only and does not constitute legal or tax advice. The analysis is based on the draft legislation and publicly available materials as at the date of publication. The final legislative framework, including any transitional rules and administrative guidance, may differ from the current draft. No action should be taken or refrained from on the basis of this publication without obtaining specific professional advice tailored to the relevant facts and circumstances.

[1] Landsverordening minimumbelasting 2024