What are payroll taxes in Aruba?
Aruba is part of the Kingdom of the Netherlands. The Kingdom has a Tax Regulations for the Kingdom (Belastingregeling voor het Koninkrijk or BKR). The main purpose of the BKR is to avoid double taxation within the Kingdom. Additionally Aruba is party to the treaty between the Kingdom of the Netherlands and the United States of America concerning the exchange of information with regard to taxation.
The important Aruba taxes on corporations are profits tax (winstbelasting) and company turnover tax (belasting op bedrijfsomzetten or BBO). The BBO rate is 1, 5%.
The social security premiums in Aruba are levied separately from the income and/or wage tax. Aruba knows 5 different social security taxes: old age pension (“AOV”) and widow & orphans pension insurance (“AWW”), general health insurance (“AZV”), sickness insurance (“ZV”), accident insurance (“OV”) and cessantia.
Aruba has published the individual income tax table for 2020. The brackets and rates are as follows:
- up to AWG 34,930 – 14%
- over AWG 34,930 to 65,904 – 25%
- over AWG 65,904 to 147,454 – 42%
- over AWG 147,454 – 52%