The individual's liability to income tax is determined on the basis of residence. There are two possibilities: resident or non-resident (but receiving specific Aruban source income). The tax is based on the net income and calculated against a progressive rate.

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Key message

The key tax consideration for Aruba will be whether the business traveller is a resident or not. If the business traveller is a resident: whether the ex-patriate regulation - which provides in a favourable income tax regime for ex-patriates - would apply.


The individual’s liability to income tax is determined on the basis of residence. There are two possibilities: 1) resident or 2) non-resident but receiving specific Aruban source income. The tax is based on the net income and calculated against a progressive rate.

Income Tax

Liability for income tax

The individual’s liability to income tax is determined on the basis of residence. The residence will be determined by circumstances and the main question is: “where has the individual it’s centre of life”.

Tax trigger points

If the employer of the business traveler is a resident of Aruba or is a branch or permanent establishment in Aruba, there may be a liability for wage tax.

Types of taxable income

If the individual qualifies as a resident for the Aruba Income Tax Act, tax should be paid over income from real estate, movable assets, business and labour, and rights from periodic payments. If the individual is a non-resident, Aruba calculates source taxes on specific income like employment income earned in Aruba, unless a treaty provides otherwise.

Tax rates

The progressive tax rates in the income tax are as follows:

Number Income brackets Rate group 1 Rate group 2
1 - 7.296 - 7,00% - 7,40%
2 7.296 17.177 510,72 9,55% 539,90 10,05%
3 17.177 28.243 1.454,36 13,70% 1.532,94 14,45%
4 28.243 40.883 2.970,40 18,00% 3.131,98 19,00%
5 40.883 54.930 5.245,60 23,50% 5.533,58 24,80%
6 54.930 70.665 8.546,65 29,00% 9.017,24 30,60%
7 70.665 85.093 13.109,80 34,10% 13.832,15 35,95%
8 85.093 100.640 18.029,75 38,00% 19.019,02 40,10%
9 100.640 120.462 23.937,61 41,75% 25.253,37 44,05%
10 120.462 149.079 32.213,30 43,20% 33.984,96 45,60%
11 149.079 191.343 44.575,84 46,25% 47.034,31 48,80%
12 191.343 256.697 64.122,94 52,00% 67.659,14 54,85%
13 256.697 304.369 98.107,02 54,20% 103.505,81 57,20%
14 304.369 - 123.945,24 55,85% 130.774,19 58,95%
(Group 1: for married taxpayers whose spouse earns no income)

Social security

Liability for social security

There is a liability for the AOV (general old-age insurance), the AWW (general widows and orphans insurance) and the AZV (general health insurance), unless a treaty provides otherwise.


Employee Employer Total Employee Employer Total Maximum premium base
2015 5,0%








AZV Total rate Surcharge employer Maximum premium income Maximum premium
2015 11,5 8,9 85.000 9.775

Compliance obligations

Employee compliance obligations

If income tax is due exceeding wage tax withheld with any, income tax declaration to the inspectorate of taxes is obligatory.

Employer reporting and withholding requirements

Payment of the levied taxes by the employer at declaration within fifteen days after the end of the period is obligatory.

Other issues

Double taxation treaties

BRK (Tax regulation for the kingdom of the Netherlands). Aruba also has several tax information exchange agreements (TIEAs) with other countries.

Permanent establishment implications

If the business traveller works for a permanent establishment in Aruba, the employer is obliged to withhold wage tax.

Indirect taxes

BBO 1,5% and 2% health levy (the rate of the health levy has increased from 1% to 2% as of July 8th, 2015)

Transfer pricing

The arm’s length principle is applicable on all transfer pricing between affiliated companies with regard to all mutual legal relations (e.g. management fees, remunerations for services provided, etc).

Work permit / visa requirements

Work permit required/Visa required

Local data privacy requirements


Exchange control

Yes, by Central Bank of Aruba

Non deductible costs for assignees

Workspace, personal care etc


Not applicable


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© 2016 Meijburg & Co Caribbean, Tax Lawyers, is an association of limited liability companies and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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