WILLEMSTAD – In a surprising move, Norway has announced the cancellation of its tax treaty with Curaçao, effectively ending the agreement designed to prevent double taxation as of January 1.

The Minister of Foreign Affairs of Norway made the announcement, revealing that the termination also includes tax treaties with Sierra Leone, Barbados, Jamaica, and Trinidad & Tobago. Norway deems these treaties outdated and seldom utilized in practice. In certain cases, the European country intends to pursue renegotiations, while with other countries, Norway has no plans to establish new agreements.

The cancellation of the tax treaty has come as a surprise to Curaçao, with Minister Silvania highlighting the highly unusual nature of such an action. Moreover, there were no prior discussions or indications of this decision. The Curaçao government, therefore, intends to seek further clarification and explanation from Norway regarding this abrupt termination.

Presently, Curaçao maintains two double taxation treaties, one with Norway and another with Malta. While the treaty with Norway, originally established during the Netherlands Antilles era, had already come into effect, the ratification process for the tax treaty with Malta is currently underway.

The termination of the tax treaty raises concerns regarding the potential impact on businesses and individuals in Curaçao engaged in international transactions with Norwegian entities. The absence of a tax treaty may lead to increased tax liabilities, as well as additional complexities in cross-border transactions.

Curaçao’s government will assess the implications of the treaty’s cancellation and explore potential alternatives to ensure fair tax treatment for its citizens and businesses. The discussions with Norway and other relevant parties will aim to find mutually beneficial solutions that address the concerns arising from the termination of the tax treaty.

Bron: Curacao Chronicle