As of March 21, 2025, the Penalty Policy for Mandatory Financial Information Exchange Applies.
ORANJESTAD – The Tax Department informs that as of March 21, 2025, the Penalty Policy for Mandatory Financial Information Exchange (Boetebeleid bij informatieplicht) will come into effect.
The Penalty Policy includes, among other things, the procedure for imposing penalties, the criteria used to determine the fine's amount, and the notification of individuals or institutions about their rights to object and appeal against imposed fines. The "National Ordinance on International Tax Assistance" (LIBB) and the "Common Reporting Standard" (CRS) implement this policy.
LIBB and CRS
The National Ordinance on International Tax Assistance (LIBB) enables Aruba to cooperate with other countries to combat tax fraud and prevent tax evasion. This law includes provisions related to obligations derived from international treaties, including the Common Reporting Standard (CRS) and Automatic Exchange of Information (AEOI), as determined by the Organisation for Economic Co-operation and Development (OECD).
Objective
The Penalty Policy for Mandatory Financial Information Exchange aims to establish clear regulations for imposing penalties in cases of non-compliance with tax obligations or fraud related to international tax cooperation. At the same time, the policy supports individuals and institutions in complying with their duty according to national and international tax laws and regulations. The intention is to encourage them to provide accurate and timely information to tax authorities in other countries, thereby mitigating non-compliance risks.
Additionally, the Tax Department ensures efficiency in its internal processes and controls to guarantee that the Penalty Policy is applied fairly, consistently, and transparently.
Who is subject to the LIBB?
The following individuals and institutions are subject to the National Ordinance on International Tax Assistance (LIBB):
- Natural persons.
- Legal entities.
- An association of persons authorized to perform legal acts but lacking legal personality.
- Other legal arrangements that own or manage assets, including the income they generate.
The National Decree designates these individuals or organizations, which may include banks or other financial institutions in charge of providing data to Aruba's tax authorities and other nations according to the international information exchange treaty.
When does the Penalty Policy apply?
The Penalty Policy applies to all persons or institutions subject to the LIBB (Article 1) who fail to comply with their legal obligations, such as withholding information or providing incorrect information to the tax authorities.
The Tax Department recommends that all individuals and financial institutions subject to the LIBB consult the Penalty Policy for Mandatory Financial Information Exchange.
Furthermore, the Tax Department urges compliance with information exchange regulations by national laws and international treaties to avoid penalties for non-compliance.
