Curaçao is at an advanced stage of implementing the international Pillar Two agreements of the OECD Inclusive Framework. These agreements aim to ensure that large multinational enterprise groups pay a global effective minimum corporate income tax rate of 15%.
1. International background: Pillar One and Pillar Two
In October 2021, 138 countries within the OECD Inclusive Framework reached agreement on new rules for the taxation of multinational enterprises, partly in response to the increasing digitalisation of the economy.
This agreement consists of two pillars.
Pillar One concerns a (partial) reallocation of taxing rights, under which part of the profits of the largest and most profitable multinationals is taxed in the countries where they carry out their activities.
Pillar Two contains agreements on a global effective minimum tax rate of 15% for multinational groups with a consolidated turnover of at least EUR 750 million. Curaçao is a member of the Inclusive Framework and has thereby committed itself to these international tax standards.
2. Task Force International Compliance and consultation process
In October 2023, the Minister of Finance established the Task Force International Compliance, with the mandate to advise on the possible introduction of Pillar Two in Curaçao. In 2024, this task force held several consultation rounds with representatives from the financial sector, interest groups and the Tax Authorities.
These consultations showed that multinational enterprises prefer to locate their group activities in so‑called “Pillar Two jurisdictions”, as the application of Pillar Two affects their global tax position and business strategy. According to the minister, early implementation may provide Curaçao with a competitive advantage in the region.
3. Circular and publication of the draft (December 2024)
On December 27, 2024, the Circular announcing the draft National Ordinance Minimum Tax 2024 was published in the Official Gazette of Curaçao. At the same time, the draft national ordinance and the accompanying Explanatory Memorandum were made public, in advance of the parliamentary proceedings.
This early publication aimed to provide the relevant enterprises with timely clarity regarding the tax consequences as of January 1, 2025. On January 3, 2025, a rectification was published, in which the reference to “31 December 2024” in the circular was replaced throughout by “1 January 2025”.
4. SER advice and policy context
During an extraordinary preparatory meeting of the Social and Economic Council (SER) on January 24, 2025, the council received an extensive technical tax briefing on the draft national ordinances Minimum Tax 2024 and Tax Reform 2025.
The SER emphasised the importance of timely implementation, both to safeguard tax revenues and to ensure Curaçao’s international competitive position, and issued its advice on the draft in May 2025. In addition, the advice of the Council of Advice dated February 11, 2025 was appended to the legislative proposal.
5. Parliamentary proceedings (brief overview)
The draft National Ordinance Minimum Tax 2024 was submitted to the Estates of Curaçao on December 18, 2025. The draft ordinance was discussed on January 29, 2026 in the Central Committee of the Estates, after an earlier meeting scheduled for January 28, 2026 had been cancelled.
During the committee proceedings, several Members of Parliament raised critical questions regarding the scope, implementation and consequences of the proposed minimum tax. A request was made for a technical briefing by experts, in which the Association of Antillean Tax Advisers (VAB) should also be involved.
On March 12, 2026, the final report (relato final) of the committee meeting was adopted and submitted to the government. This report forms the basis for the further parliamentary process.
6. Core of the National Ordinance Minimum Tax 2024
The legislative proposal aims to introduce an effective minimum tax of 15% on the profits of group entities of qualifying multinational enterprises with a global turnover of at least EUR 750 million.
The draft creates a national legal framework for levying an additional minimum tax where the effective tax rate in Curaçao falls below the international minimum. The objectives are:
- alignment with international tax standards;
- protection of the national tax base; and
- prevention of tax bases leaking to other jurisdictions that already apply top‑up tax measures.
Following approval by the Estates, the national ordinance will enter into force retroactively as of January 1, 2025.
7. International developments: Side‑by‑Side package (January 2026)
On 5 January 2026, an agreement was reached within the OECD Inclusive Framework on a so‑called “Side‑by‑Side package” in relation to Pillar Two. This package includes, inter alia:
- criteria under which national tax systems may, subject to conditions, be regarded as equivalent to Pillar Two;
- agreements on a more favourable treatment of certain tax regimes for enterprises with real economic activities; and
- various simplification and safe harbour rules, including the Side‑by‑Side Safe Harbour and the Ultimate Parent Entity (UPE) Safe Harbour.
The European Commission has since recognised this agreement and confirmed its application to the EU Pillar Two Directive. Against this background, the question arises whether – and if so to what extent – the Curaçao draft national ordinance requires amendment following this agreement.
8. Tax advice on Pillar Two and minimum tax in Curaçao
Would you like to know more about the National Ordinance Minimum Tax 2024, Pillar Two, or the implications for multinational enterprise groups in Curaçao? Please feel free to contact us at info@rootz.tax.
March 2026