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The offshore location offers a variety of facilities to investment companies, financial institutions and other businesses that wish to expand and maximise profitability while shoving out minimum or nil tax liabilities. The benefit in Antilles is that there are no deductions on dividends, interests and/or royalties. There are no controls on the flow of foreign exchange or company formation restrictions.
Summary
of business opportunities available in Netherlands
Antilles:
International
Business Corporation (IBC)
| License
fee (annual) |
US$430 |
| Formation/Incorporation
fee |
US$850 |
| Annual
Returns filing fee |
Not
applicable |
| Minimum
requirements and/or size |
Not
applicable |
| Shareholders/Members |
One
(minimum) |
| Directors/Managers |
One
(minimum) |
| Bearer
shares for overseas/local investors |
Allowed |
| Submission
of annual returns and accounts |
Not
required |
| Corporate
Directors/Managers |
Permitted |
| Company
Secretary |
Permitted
but not required |
| Local
Directors and meetings |
Not
required |
Public
Limited Company
| License
fee (annual) |
US$750-1500 |
| Formation/Incorporation
fee |
US$500 |
| Annual
Returns filing fee |
Required |
| Minimum
requirements and/or size |
US$50,000 |
| Shareholders/Members |
One
(minimum) |
| Directors/Managers |
One
(minimum) |
| Bearer
shares for overseas/local investors |
N/A |
| Submission
of annual returns and accounts |
Required |
| Corporate
Directors/Managers |
N/A |
| Company
Secretary |
Required |
| Local
Directors and meetings |
N/A |
Limited
Liability Companies (LLC)
| License
fee (annual) |
US$750 |
| Formation/Incorporation
fee |
US$500 |
| Annual
Returns filing fee |
Not
required |
| Minimum
requirements and/or size |
N/A |
| Shareholders/Members |
One
(minimum) |
| Directors/Managers |
One
(minimum) |
| Bearer
shares for overseas/local investors |
N/A |
| Submission
of annual returns and accounts |
Not
required |
| Corporate
Directors/Managers |
N/A |
| Company
Secretary |
Not
required |
| Local
Directors and meetings |
N/A |
Limited
Partnerships
| License
fee (annual) |
US$500 |
| Formation/Incorporation
fee |
US$ 250 |
| Annual
Returns filing fee |
Not
required |
| Minimum
requirements and/or size |
N/A |
| Shareholders/Members |
One
(minimum) |
| Directors/Managers |
One
(minimum) |
| Bearer
shares for overseas/local investors |
N/A |
| Submission
of annual returns and accounts |
Not
required |
| Corporate
Directors/Managers |
N/A |
| Company
Secretary |
Not
required |
| Local
Directors and meetings |
One
local partner (minimum) |
| Currency |
Netherlands Antilles Franc
(NAF) |
| Taxation |
|
| Income Tax |
2.4–6% of income from outside Netherlands Antilles |
| Social
Tax |
Employees – 2% of taxable pay to a maximum of NAF 06,000 per annum
Employers – 0.5% of taxable pay to a maximum of NAF 1,500 per annum |
| Capital
Gains Tax |
NONE |
| Work Permit |
Yes, application to Immigration office |
| Withholding Tax |
NONE |
Residence
Foreigners wishing to stay in Netherlands Antilles for an extended period require a residence permit. Tourists are normally allowed a 14-day visit without a written permit but must apply for an extension if they intend to stay further. Tourists from the countries that have a prior agreement with the Kingdom of Netherlands are allowed to stay for a period of 3 months, but must report to the immigration office in the first 2 weeks of arrival.
Residence permits are issued by the Governor’s office during office hours. An amount is collected at the time of application, which may be refunded when leaving permanently or after a 5-year stay in Netherlands Antilles. To apply for the residence permit or license, you will require the following original documentation:
-
Passport
-
Marriage or divorce papers
-
3 passport-sized photographs
-
A certificate of good conduct issued by the police in the country of domicile
-
Medical certificates
-
Health insurance documents
-
Financial statements exhibiting your potential to fulfil your requirements (if you are not applying for a work permit)
The application for a residence permit must be made personally. An application for family members, in addition to yourself, must be indicated on the form; otherwise, your family members may not be included on the license.
Taxation issues for specialised companies
In general, the Netherlands Antilles provides tax advantages for various offshore companies, for some however, different taxation rules apply. Real estate companies or other companies investing in immovable property outside the Netherlands Antilles are not required to pay any taxes on their income, which may be from real estate commissions or dividends earned.
Dividends earned by investment companies are taxed at 2.4% on the first NAF 100,000 (approx. US$56,000) and 3% on any incomes above the threshold. Capital gains are exempt and are therefore not chargeable on investment companies. Business expenses, such as interest on bank overdrafts or loans and other general expenses, are tax deductible.
Parent or holding companies of non-Dutch subsidiaries are treated similar to investment companies; this may differ if the subsidiary is a Dutch company. Being a holding company of a Dutch company allows the parent to avail valuable tax benefits as part of the agreement between Holland and the Netherlands Antilles. Withholding taxes on dividends are reduced from 25% to a mere 5%, plus a zero or reduced rate of tax on interests and royalty receipts from such subsidiaries, due to the tax treaty between Holland and other European countries, which profits the local companies and their holding companies.
For offshore companies in the Netherlands Antilles, taxation is at an effective rate of 4.8% to 6% of the net profit – business expenses are tax allowable up to a maximum of 80% of the income earned, the net income then taxed at 24-30%. Special rates of taxation, however, apply to offshore banks, mutual funds, insurance companies (captives), companies with foreign branch(es), shipping and aviation companies.
Financing companies are treated as investment companies, unless a tax ruling may be obtained which allows interest as a business expense, thus being tax allowable. The ruling applies where the company does not pay interest to a bank; payment is part of an arm’s length transaction and not a personal favour, and there is a significant variance in the interest incomes and expenses.
Companies earning income from royalty collections are taxed on profit at 2.4-3%, whereas capital gains are exempt but capital losses are not tax allowable. Certain general business expenditures, such as licensing fee and royalties paid, are deductible from profit before applying the tax rate, provided they produce a minimum level of taxable income.
Disclosure
The government of Netherlands Antilles certifies the non-disclosure of corporate or individual records. Information of investors from outside the country are allowed to remain unknown, the applicants may hold bearer shares to maintain confidentiality. |
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