Taxation

Aircraft registered in Aruba will be exempt from taxation or import duties.

Aruba offers a favorable tax jurisdiction with: 0% VAT, 0% corporate tax, and 0% income tax

 

 If structured properly: 

  • The aircraft activities of the Aruban entity may not result in corporate income tax
  • Dividend distributions as a result of profitable aircraft activities of the Aruban entity will not result in dividend withholding tax payable in Aruba
  • No foreign exchange commission is due on international payments
  • Aruba does not have an insurance premium tax
  • Aruba does not impose a transfer tax on the transfer of aircrafts
  • Import duty on aircraft is, 0%
  • There is no need to file corporate income tax returns if conditions are met, Aruba has a favorable tax system for the registration of aircraft.
  • The leasing of an aircraft may occur free of tax, no withholding taxes are due on lease installments if certain conditions are met

 

Aruba is part of the Kingdom of the Netherlands and has a stable legal, fiscal and political environment, an Aruba entity may have access to the Tax Regulation for the Kingdom of the Netherlands and structured through other jurisdiction of the Kingdom of the Netherlands with the obligations as applicable to the owner of the aircraft.

 

Taking the above into consideration, these changes make it more flexible for foreign entities to register in the Aruba aircraft registry and may expand the possibility for a tax efficient structure.