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Progress Made On New Tax System For Antillean Islands,
by Amanda Banks, Tax-News.com, London
Thursday, January 31, 2008
Significant progress has been made in discussions on a new fiscal scheme for
the Netherland Antillean islands of Bonaire, St. Eustatius and Saba after they
attain a new constitutional status, it has been reported.
According to the St. Maarten Daily Herald, the new tax system, financial markets
and constitutional status as 'ultra peripheral territories' (UPT) were the subject
of lengthy discussions between senior civil servants from the islands which
took place on Monday.
The BES islands have been negotiating their status as “public entities”
of the Netherlands, and the results of this week’s meeting will be pivotal
if the December 15 target date is to be met, the news service reported.
It is hoped that a final decision on the tax proposals will be agreed
during further consultations, which will include the Dutch government, scheduled
to take place on Thursday.
Officials from the Dutch government have also engaged the islands' governments
on new financial markets laws, which will regulate everything from investments
to banks and insurance, and have proposed that the US dollar be adopted as their
currency. A study is also underway to explore the introduction of the euro in
Bonaire, which maintains significant trade and tourist links with the Netherlands.
The islands making up the Netherland Antilles are currently undergoing fundamental
constitutional change. Following a series of referenda between 2000 and 2005,
a Round Table Conference held between the governments of the Netherlands, Aruba
and the islands of the Netherland Antilles agreed that Curacao and St Maarten
would become autonomous territories, while the BES islands of Bonaire, St. Eustatius
and Saba would have a new status, but remain linked to the Netherlands. The
agreement will dissolve the Netherland Antilles by 15th December, 2008.
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