On January 1, 2009, a new corporate entity was introduced in the Aruba laws, the limited liability company (comparable to the LLC, hereinafter: VBA). The VBA is a very flexible corporate entity that is especially useful if the voting rights and profit rights of shares need to be separated.

Penalty System

Aruba’s penalty system is quite strict and can be divided into three categories. Penalties for omissions are generally mild and increase as the number of occurrences increase. Penalties for gross negligence or intent, taking into account the circumstances, can go up to 100% of the tax due. Penalties for non-compliance with any information obligation or for not cooperating with the authorities can be imposed, which however needs to be done by the Public Prosecutor.

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.