Filing and Paying Dates
Aruba's tax system is based on two different systems, each with their own stipulations for filing the returns and paying of the taxes due. These systems are the "assessment" taxes and the "filed return" or "self-assessment" taxes.
- Assessment Taxes. The taxes due based on an assessment are for example the personal income tax. The tax payer annually has to file the issued return within two months after its date of issue. If the tax payer cannot file the return within this 2 month period, a request for an extension - with a maximum of twelve (12) months - can be filed at the tax authorities. Based on the return, the tax authorities will issue an assessment. The assessment should be paid within 2 months after the date of the assessment. The tax authorities can always deviate from the filed return.
Please note that if no return has been received within 6 months after the end of the tax year, the tax payer is obliged to request a return within 15 days after the 6 months have expired.
The tax authorities can impose preliminary assessments during the current financial year. In that case the amount due in the preliminary assessment can be paid in as many installments as months remain in the financial year. Interest will be charged if the payment regulation is used.
- Filed return or self-assessment taxes. The taxes due based on a return are for example corporate income tax (as of 2014), wage tax, turnover tax, social security premiums and dividend withholding tax. Between these self-assessment taxes, three different systems can be identified, each with their own filing & payment dates.
- Periodic returns. The wage tax, turnover tax, and social security premiums returns should be filed within 15 days after the month-end, while also the amount due should be paid within these 15 days. It is not obligatory to pay the amount due when filing the return and vice versa; the filing of the return and payment of the amount due can occur separately, as long as both are done within the legally stipulated period.
- Time specific returns. The dividend withholding tax is a time specific return. Within 15 days after the dividend becomes payable, i.e. is at the disposal of the shareholder, the return should be filed within 15 days after the month-end, while also the amount due should be paid within these 15 days. It is not obligatory to pay the amount due when filing the return and vice versa. We refer to the Fundamentals dividend withholding tax.
- Annual return. The corporate income tax is a self-assessment tax. Within five months after the end of the financial year, the corporate income tax return should be filed and the corporate income tax due paid. If the final corporate income tax return cannot be filed within those five months, a provisional corporate income tax return needs to be filed and the estimated corporate income tax due paid, with a minimum in corporate income tax due as per the last filed corporate income tax return. Filing such a provisional corporate income tax return (and payment of the amount due) provides an extension with a maximum of six (6) months. If the final corporate income tax return shows a lower corporate income tax due than paid on the provisional return, the tax authorities need to issue a decree within six (6) months, with an extension of a maximum of another six (6) months, after the filing date of the final corporate income tax return, confirming that indeed the amount due is less than paid. This decree entitles you to a refund.
- Objection and appeal. It is possible to file an objection at the tax authorities within two months after the date of the assessment. The tax authorities in principle have one year to decide to (partially) approve or (partially) deny the objection. If the tax authorities fail to comply with this deadline, the tax payer is allowed to, within two years after the date the tax authorities should have decided on the objection, file an appeal at the Tax Appeal Court (fictitious denial of the objection). If the objection is (partially) denied, the tax payer can file an appeal at the Tax Appeal Court within two months after the date of the denial of the objection. Any verdict by the Court can be appealed again and if necessary afterwards, the case can be brought before the Dutch Supreme Court.
The above is not intended to constitute, nor should it be relied upon, to replace any professional advice. No action should be taken without first consulting your tax advisor. The above reflects the law effective January 1, 2019.
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