Aruba Approves 2023 Tax Plan Including Corporate and Individual Income Tax Rate Reductions, a Turnover Tax Rate Increase, and Other Reform Measures

On 21 December 22, Aruba's parliament approved legislation for the 2023 tax plan. The main measures include the following:

• The corporate income tax rate is reduced from 25% to 22% under the Profit Tax Ordinance, with the rate under the Aruba Petroleum Ordinance (28%) changed to instead refer to the tax rate under the Profit Tax Ordinance (i.e., 22%);
• A transitional rule is provided in relation to the corporate income tax rate reduction for financial years that began before 1 January 2023 an…