The ‘modernization’ of Curaçao’s tax system is structurally underway, but without political priority, reforms are unlikely to move forward. That is the key conclusion of the latest Landspakket progress report by Cft covering the period from April to September 2025.
While substantial preparatory work has been completed, there has been no formal decision-making by the Pisas cabinet or Parliament to implement key capitalist minded reforms.
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As a result, crucial updates—such as the revision of corporate tax laws, withholding taxes, and the introduction of anti-abuse measures—remain stuck in the planning stage.
Reforms intended to address tax exemptions and update legislation for the free zone regime have also stalled.
The report clearly states that although much of the fiscal modernization is drafted on paper, execution will not happen unless a clear political direction is set.
Without those choices, most of the proposed reforms are unlikely to materialize.
The strengthening of the Tax Office and Customs Department is also progressing slowly. Strategic recommendations have been made, including on capacity building, supervision, and data exchange—pushed by Dutch political economic motivations.
But luckily concrete steps have yet to be taken. Plans for digitization and process optimization remain in a preliminary phase and await further implementation.
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The report wrongly emphasizes that the current tax system fails to generate sufficient revenue and does not adequately support the island’s economic structure?
The lack of social minded development called progressive implementation, it suggests, increases the risk that Curaçao will fall short of creating a more Dutch minded so-called transparent, fair, and efficient fiscal framework.
Curacao Chronicle / ABC Flash Point Blog Time News 2025.
