Newsflash

Aruba: Personal income tax 2018

Dear client, Dear relation,

In this newsflash we will discuss the following topics:

  1. Filing deadlines and extensions.
  2. Information required for the filing of the 2018 personal income tax return.
  3. Can the Tax Authorities deviate from your return?
  4. Consequences of late filing or no filing of the 2018 personal income tax return.

 

  1. Filing deadlines and extensions.

The Tax Authorities are currently issuing the 2018 personal income tax returns. The returns are dated July 1, 2019. In principle, the returns should be filed within 2 months, ultimately September 2, 2019. However, the Tax Authorities have granted an extension for the filing of the returns until December 2, 2019.

 

  1. Information required for the filing of the 2018 personal income tax return.

Please find below a non-exhaustive list of the types of taxable income and deductions applicable for the filing of the 2018 personal income tax return.

Taxable income

  • Income of current and/or past employment within and/or outside Aruba.
  • Revenue from personal business or labour.
  • Revenue from immovable properties within and/or outside Aruba.
  • Investment income.
  • Recurring benefits (for example social security, alimony etc.).

Deductions

  • Mortgage interest and other related costs (for example notary costs and premiums risk insurance) (max Afl. 50,000 deductible).
  • Maintenance costs for monuments (max Afl. 5,000 deductible).
  • Interests on loans and interests on credit cards (max Afl. 5,000 deductible per person).
  • Interests and repayments on study loans (max Afl. 10,000 deductible).
  • Alimony paid to ex-spouse.
  • Premiums paid for pension insurance (max Afl. 10,000 deductible).
  • Donations to religious, charitable, cultural, sporting, scientific and general welfare in Aruba (max Afl. 50,000 deductible).
  • Costs of living for close families.
  • Costs related to sickness, invalidity and death.
  • Costs of trainings and study for a profession.
  • Child deduction.

We advise you to start gathering the necessary documents with regards to your income and deductions for the tax year 2018 as soon as possible.

 

  1. Can the Tax Authorities deviate from your return?

The Tax Authorities have the possibility to deviate from your filed 2018 personal income tax return. Deviations may be a result of differences in interpretation, developments in case law and/or changed points of view.

If the Tax Authorities deviate from your 2018 personal income tax return, or afterwards discover facts that result in a higher income, the Tax Authorities can impose an (additional) assessment including a penalty. The penalty can amount to 50% of the (additional) tax due in case of gross negligence or intent and 100% in case of more serious offenses or repetition thereof.

 

  1. Consequences of late filing or no filing of the 2018 personal income tax return.

If the 2018 personal income tax return is not filed or not filed on time, the Tax Authorities can impose an (additional) assessment including a penalty. The penalty can amount to 5% of the (additional) tax due with a minimum of Afl. 250 and a maximum of Afl. 10,000.