Everyone has a tax country of residence and every organization has a country of tax residence. Financial institutions are obliged to determine the tax residence or country of residence of their customers. They do this for new customers in a different way than for existing customers.

A new customer

From January 1, 2016, financial institutions in CRS countries are obliged to have new customers submit a ‘self-declaration’. In Curaçao, natural persons can do this with the ‘Determining tax residency’ form and organizations with the ‘Determining tax status’ form. Almost all financial institutions in Curaçao use these forms. They were drawn up by the Ministry of Finance.

An existing customer

For customers who were already account holders on January 1, 2016, the financial institutions may rely on the information they already have. If there is a suspicion that this information is incorrect, the institution must ask the customer to provide a self-declaration. The reason for this may be, for example, a move abroad, if the customer provides a foreign telephone number, or if the information is outdated.

If a financial institution determines that a customer (also) has a tax residence or domicile in another country, it will pass on all kinds of personal data about this customer to us, such as:

• name
• address
• date and place of birth
• country of residence or country of residence for tax purposes
• the tax identification number of the country of residence or country of establishment

In addition, the financial institution provides, among other things, the following financial data:

• the account number or policy number (for insurance)
• the balance or value of the account
• the interest and dividend income
• the values ​​of capital and annuity insurance policies
• the proceeds from the sale of financial products such as securities

What happens to the data?

If an account holder lives or is established in a CRS country, the financial institution in Curaçao records the CRS data in its administration. She passes it on to us every year (deadline is September). We then pass on the data to the tax authorities of the country of residence or domicile.

This works in a similar way in the other CRS countries. For example, we receive data from tax authorities from CRS countries about people and companies who have a financial account there and who have Curaçao as their tax country of residence or domicile.

Protection of personal data

Before CRS countries exchange information, further agreements have been made. Also about the protection of personal data. The Organization for Economic Co-operation and Development (OECD) plays an important role in this.

Each CRS country has its own laws and rules to determine the country of tax residence or domicile. Information about this can be found on the website of the Organization for Economic Co-operation and Development (OECD).

Rules in Curaçao

In Curaçao, circumstances play an important role in determining the tax country of residence or domicile. These circumstances differ for natural persons and organizations.

Natural persons

As a natural person, you are a tax resident of Curaçao if you have your permanent residence or residence here. We check, among other things, whether the following circumstances apply:

• You spend most of your time at an address in Curaçao.
• Your partner and your family live in Curaçao.
• You work in Curaçao.
• You are insured in Curaçao.
• You have a general practitioner in Curaçao.
• You are a member of 1 or more Curaçao associations.
• Your children are following an education in Curaçao.

Organizations

To determine whether an organization is tax resident in Curaçao, we look at the following circumstances, among others:

• Where are the most important policy decisions made?
• Where do the board members work and meet?
• Where are the administration kept and the annual accounts drawn up?

For organizations we can also look at the following circumstances:

• Where do the shareholders live and meet?
• Where is the organization registered?
• Where was the organization founded?
• The legal form of an organization also plays a role. For example, in a general partnership we also look at the tax residence of the partners.

More than 1 country of residence or location?

In exceptional cases you may have more tax residence countries. A company can also have different tax residence countries. Is that the case? Then ask an intermediary for advice.

Financial institutions are obliged to provide data to the tax authorities according to the Common Reporting Standard (CRS). This data concerns accounts of persons and organizations that are (possibly) liable to pay taxes abroad.

By ‘financial institution’ we mean a depository institution, a depository institution, an investment entity or a specified insurance company.

Some financial institutions, including certain government agencies and pension funds, are not required to provide data about their customers. More information about this can be found in the LIBB.

Financial institutions that are not exempt from providing data for the CRS must register with the Tax Authorities.

You must register with the Tax Authorities, as a financial institution, in the situation that you have to provide data for the CRS.

In the situation that you are not exempt from providing data for the CRS, but there is no data to report? Then you still must register with the Tax Authorities’. It then remains a one-time registration. However, you must report again on your own initiative if this situation changes.

Contact with the Tax Authorities

You can send an email to: info.aeoi@gobiernu.cw.

In the FATCA/CRS Guidelines you will find information regarding who must provide data and what data it concerns.

Are you unsure whether you are a financial institution and whether you need to provide data? Please consult your tax advisor.