Upheaval of Online Gambling Companies in Curaçao 2020

Upheaval of Online Gambling Companies in Curaçao 2020

2020 was marked by the great changes not only in the economy of each country, but also in the legislative aspects of
gambling industry.
Below we will analyze the most significant changes that have affected all gambling market participants located in Curacao.

1. Elimination of Special Economic Zone E-Zone

All operating gambling companies are registered in the special economic zone with special tax regime - 2%.
The latest tax law amendments eliminated this zone from January 1, 2020. However, there is a transitional period for the
companies registered in this sector before December 2019.
The duration of this transition period is not clearly defined, but should not last more than 6 years (until 2026).

2. Responsible Gambling Principle

Earlier in this article, we have reviewed the global practice how the responsible gambling principles are applied. Since
this year, the rules have become mandatory for Curacao.

3. AML Compliance

All operators of online platforms of casino, betting or other gambling are required to conduct a Know Your Customer (KYC)
procedure, monitor, identify and prevent suspicious transactions, and generate regular reports on any suspicious
transactions to the FIU, the financial intelligence unit.
Since this year, the control over implementation of these requirements has been tightened.

4. Territorial Taxation

The transition to the territorial taxation principle has become the most significant change under the influence of OECD for
Curacao.
Thus, all companies registered in Curacao and having economic substance here are subject to taxation:

• on general terms for those received from the territory of Curacao - 22%.
• preferential rate for special activities with income in Curacao - 3%.
• any income from foreign sources - 0%.

5. Economic Substance  

For the purposes of applying the principles of territorial taxation and zero tax rate accounting, including from online
gambling operator activities, it is necessary to ensure economic substance on the island.
There are no specific requirements for the adequacy of economic substance in any regulatory document, but in practice,
currently, they include as follows:

• Resident director (legal entity or individual).
• Physical address for location of the company's office.
• Employee hired in Curacao.

Law and Trust International is ready to provide its clients with comprehensive support in connection with the above
changes, both in organizational and advisory terms.
For more detailed instructions and explanations, please contact Law and Trust managers.