On 1 September 2026, the Parliament of Curaçao approved the Minimum Tax Act 2024. This marks an important step in Curaçao’s implementation of the OECD Pillar Two rules, which provide for a global minimum level of taxation for large multinational enterprises. The legislation applies to multinational groups with annual consolidated revenue of at least EUR 750 million and aims to ensure an effective minimum tax rate of 15%.
Key Changes
During the legislative process, the proposed legislation was amended following recent developments within the OECD Inclusive Framework and the so-called Side-by-Side Package.
The original proposal included the introduction of a Curaçao Qualified Domestic Minimum Top-up Tax (QDMTT). Following further analysis and consultation with stakeholders, however, the Curaçao government decided not to introduce this domestic top-up tax at this stage. Curaçao has also decided not to introduce the Undertaxed Profits Rule (UTPR). As a result, the approved legislation contains only the Income Inclusion Rule (IIR).
In addition, a second amendment incorporated a number of recent OECD guidelines into the legislation. These changes relate, among other things, to:
- the OECD Side-by-Side Package;
- simplified calculation rules for the minimum tax; and
- a qualifying equivalent safe harbour for certain jurisdictions.
The OECD Side-by-Side Package contains additional guidance on the interaction between different minimum tax regimes and is intended to further streamline the application of the Pillar Two rules. In addition, simplified calculation rules have been incorporated which may, in certain circumstances, reduce the administrative burden for taxpayers.
The safe harbour is based on the OECD Side-by-Side Package and applies to groups whose ultimate parent entity is located in a jurisdiction with an OECD-recognized equivalent minimum tax regime. To qualify, the relevant jurisdiction must, among other things, have a qualifying domestic tax system, a qualifying worldwide tax system and rules allowing foreign taxes to be credited. At present, only the United States tax system meets these requirements. Where the safe harbour election is made, any Curaçao IIR top-up tax that would otherwise arise for a group with a U.S. ultimate parent entity will generally be reduced to nil.
Compliance Obligations
With the adoption of the legislation, the Pillar Two compliance framework has also been confirmed. In-scope multinational groups with a Curaçao constituent entity are generally subject to two separate compliance obligations.
First, a Pillar Two information return must be filed or, where the requirements for central filing are satisfied, a notification identifying the filing entity and filing jurisdiction must be submitted. The filing deadline is 18 months after the end of the transition year (2025) and 15 months after the end of each subsequent year.
Second, a separate minimum tax return must be filed. Through this return, it is determined whether and to what extent Curaçao IIR top-up tax is due. The return must be filed within 20 months after the end of the transition year (2025) and within 17 months after the end of each subsequent year. Any tax due must be paid within the same deadlines.
Entry into Force
The approved legislation must still be enacted by the Curaçao government and published in the Official Gazette before it formally enters into force.
The second amendment also contains transitional provisions relating to various recent OECD guidelines that have been incorporated into the legislation. Certain of these rules will generally apply from 1 January 2027, while taxpayers may, subject to certain conditions, elect to apply them retroactively to 1 January 2025.
September 2026