Resident companies are liable to corporate tax on their worldwide income including trading income, passive income and capital gains. Unless specifically exempt or otherwise relieved, foreign-source income is liable to tax. Formally, a credit for foreign tax is granted only if a treaty so provides. However, a unilateral credit is often allowed.
Business expenditure is ordinarily deductible and various incentive regimes allow for exceptional deductions. Interest charges are generally deductible, but thin-capitalization rules limit the deduction of interest on loans granted by exempt NVs or BVs, and exempt foreign companies, to other group companies. Further interest charges and rents for the use of tangible assets paid to controlling shareholders must be at arm’s length.
Domestic and foreign dividends and capital gains may be eligible for a full or partial participation exemption.
- Private foundations and Curacao Trusts which have applied for the Special investment company status ("doelvermogens", whereby restrictions apply to their activities), only have to account for 10/T part of the taxable base whereby T is equal to the tax rate. The same applies as from 1 January 2015 to NVs, BVs qualifying for tax exempt status, as well as general purpose funds ("fonds voor gemene rekening").