On 24 March 2020, the Curaçao government announced a proposal for a package of measures to support entrepreneurs and individuals coping with the negative effects of the Corana crisis. The announced measures have not yet been adopted, so far they are only proposals. It is expected that it will shortly become clear which of the proposed measures will actually be implemented.
At this stage we advise our clients to request the tax authorities for a postponement of tax payments, since there are still a lot of uncertainties. Requests for postponement can be made in accordance with existing legislation.
With respect to profit tax 2019 due before 1 April 2020, please note the proposed package does not include a postponement of the deadline for filing and payment. Hence, filing a request for postponement will be the only solution if payment of profit tax is not possible.
Requests for postponement should be made as soon as possible, but in no case later than the date the tax returns should be filed. No relief is granted for the filing of tax returns, and such relief is also not part of the proposed package of measures. To avoid penalties, we advise to file all tax returns in time, indicating the actual amounts due. The incorrect filing of tax returns indicating nil profit, turnover, or wages, could be considered as intentionally filing a false tax return and may result in penalties.
Make sure that when making a request for postponement of tax payments, you receive a stamped copy of the request. If this is not possible, make sure through an alternative way that there can be no doubt that such request is filed.
Once it will become clear exactly which measures the government of Curaçao will implement, entrepreneurs will likely be in a better position to assess whether the measures are sufficient for their business to survive the corona crisis. Entrepreneurs who foresee that their business may not weather the storm, may consider alternatives such as raising additional capital, a (mass) dismissal, or maybe even a bankruptcy. In such a case, feel free to contact us to discuss possible future steps.
If you have any questions in relation to the above or the consequences of the corona crisis in general, please reach out to your trusted contact at our firm. You can also contact us via our dedicated email address email@example.com.