Prevent double taxation Curacao Netherlands
Avoidance of double taxation
Income tax
If you live in the Netherlands and own a holiday house in Curacao the Netherlands will want to involve the vacation rentals in the income tax (Box 3) (on the basis of the residence principle).
Curaçao will want to involve the holiday in Curaçao tax (rental income) because the property is located there.
In such case there is double taxation. On the basis of the taxation rules for the Kingdom (BRK) The Netherlands will grant a reduction to avoid double taxation.
Gift and inheritance tax
Also regarding the gift and inheritance tax double taxation occurs when donating or omission of the holiday home . Curacao handles transient load and the Netherlands gift and inheritance tax (on the basis of the residence principle). Also assigned in this case, the charge under the BRK Curaçao.
Furthermore, the Netherlands and Curaçao have agreed to amend the scheme to avoid levy of double taxation.
This arrangement between the Netherlands and Curacao, the taxation of the Kingdom (BRK), has provisions similar to a tax.
There are also agreements on the automatic exchange of information by the tax authorities which should prevent tax avoidance.
There has already been indicated that a new allocation of taxing rights comes to retirement. On that basis Netherlands to levy withholding tax on distributions from the Netherlands built up pension received to Curaçao after emigration.
It is already known that the Netherlands until five years after emigrating from the Netherlands to Curacao gift and inheritance tax can be levied. Curacao is important that under conditions other than the imposition of the withholding tax on participation dividends. (August 2015)
Source: www.eenhuisinhetbuitenland.nl/ avoid double taxation / accessed on September 10, 2015.
