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The individual's liability to income tax is determined on the basis of residence. There are two possibilities: resident or non-resident (but receiving specific Aruban source income). The tax is based on the net income and calculated against a progressive rate.


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Key message

The key tax consideration for Aruba will be whether the business traveler is a resident or not. If the business traveler is a resident the question is whether the expatriate regulation - which provides in a favorable income tax regime for expatriates - applies.


The individual’s liability to income tax is determined on the basis of residence. There are two possibilities: 1) resident or 2) non-resident but receiving specific Aruban source income. The tax is based on the net income and calculated against progressive rates. Non-residents are subject to the same tax rates as residents but they are not entitled to any personal allowances or deductions.

Income Tax

Liability for income tax

The individual’s liability to income tax is determined on the basis of residence. The residence will be determined by facts and circumstances and the main question is where the centre of the individual’s vital interests is located.

Tax trigger points

If the employer of the business traveler is a resident of Aruba or is a branch or permanent establishment in Aruba, there may be liability for wage tax purposes.

Types of taxable income

If the individual qualifies as a resident for purposes of the Aruba Income Tax Ordinance, tax liability relates to income from real estate, from movable assets, from business and employment as well as from rights on periodic payments. If the individual is a non-resident, Aruba calculates source taxes on specific income like employment income, unless a treaty provides otherwise.

Tax rates

The progressive tax rates in the income tax are as follows:

Number Income brackets Rate group 1 Rate group 2
1 - 7.296 - 7,00% - 7,40%
2 7.296 17.177 510,72 9,55% 539,90 10,05%
3 17.177 28.243 1.454,36 13,70% 1.532,94 14,45%
4 28.243 40.883 2.970,40 18,00% 3.131,98 19,00%
5 40.883 54.930 5.245,60 23,50% 5.533,58 24,80%
6 54.930 70.665 8.546,65 29,00% 9.017,24 30,60%
7 70.665 85.093 13.109,80 34,10% 13.832,15 35,95%
8 85.093 100.640 18.029,75 38,00% 19.019,02 40,10%
9 100.640 120.462 23.937,61 41,75% 25.253,37 44,05%
10 120.462 149.079 32.213,30 43,20% 33.984,96 45,60%
11 149.079 191.343 44.575,84 46,25% 47.034,31 48,80%
12 191.343 256.697 64.122,94 52,00% 67.659,14 54,85%
13 256.697 304.369 98.107,02 54,20% 103.505,81 57,20%
14 304.369 - 123.945,24 55,85% 130.774,19 58,95%
(Group 1: for married taxpayers whose spouse earns no income)

Social security

Liability for social security

There is a liability for the AOV (general old-age insurance), the AWW (general widows and orphans insurance) and the AZV (general health insurance), unless a treaty provides otherwise.

Employee Employer Total Employee Employer Total Maximum premium base
2017 5,0%


AZV Total rate Surcharge employer Maximum premium income Maximum premium
2017 10,5 8,9 85.000 8.925

Compliance obligations

Employee compliance obligations

If income tax is due to an amount exceeding wage tax withheld during the calendar year, filing an income tax return to the inspectorate of taxes is obligatory. Any wage tax withheld is credited against the final income tax liability.

Employer reporting and withholding requirements

Payment of the taxes withheld by the employer at wage tax return within fifteen days after the end of the tax period is obligatory.

Other issues

Double taxation treaties

BRK (Tax regulation for the Kingdom of the Netherlands). Aruba also has several tax information exchange agreements (TIEAs) with other countries.

Permanent establishment implications

If the business traveler works for a permanent establishment in Aruba, the employer is obliged to withhold wage tax.

Indirect taxes

BBO 1,5% and 2% health levy (the rate of the health levy has increased from 1% to 2% as of July 8, 2015).

Transfer pricing

The arm’s length principle is applicable on all transactions between affiliated companies (e.g. management fees and remunerations for other services provided, interest on loans, etc).

Work permit / visa requirements

Work permit required/Visa required

Local data privacy requirements


Exchange control

Yes, by Central Bank of Aruba

Non-deductible costs for assignees

Workspace, personal care etc


Not applicable

© 2021 Meijburg & Co Caribbean, Tax Lawyers, is an association of limited liability companies and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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