Aruba, as a constituent country of the Kingdom of the Netherlands, has implemented Country-by-Country Reporting (CbCR) regulations in alignment with the OECD’s Base Erosion and Profit Shifting (BEPS) Action 13 framework. These regulations aim to enhance tax transparency and prevent profit shifting by multinational enterprises (MNEs).

The Tax Authorities of Aruba (Departamento di Impuesto – DIMP) oversee the enforcement of CbCR requirements, ensuring that MNEs operating in Aruba comply with international tax standards.

This guide provides CFOs and tax professionals with a comprehensive overview of Aruba’s CbCR framework, covering applicability, reporting requirements, filing procedures, penalties, and additional resources.

Applicability of CbCR in Aruba

Criteria for Reporting

CbCR obligations in Aruba apply to MNE groups that:

• Have consolidated group revenues exceeding AWG 1.5 billion (Aruban florins, equivalent to €750 million) in the preceding fiscal year.
• Include entities or permanent establishments (PEs) located in Aruba.

Local Filing Requirements

An entity in Aruba may be required to file a CbC report if:

• It is the Ultimate Parent Entity (UPE) of the group.
• It has been designated as the Surrogate Parent Entity (SPE) for CbCR purposes.
• The UPE’s jurisdiction does not require CbCR or does not have an effective information exchange agreement with Aruba.

Relevant Legislation

• Aruba’s CbCR framework is governed by local tax regulations implementing BEPS Action 13.
• Aruba has adopted OECD-compliant CbCR standards through its exchange of tax information agreements with various jurisdictions.

Reporting Requirements

Content of the CbC Report

The CbC report must include key financial and tax-related data for all jurisdictions where the MNE operates, including:

• Total revenues (related and unrelated party transactions).
• Profit or loss before tax.
• Income tax paid and accrued.
• Stated capital and retained earnings.
• Number of employees.
• Tangible assets other than cash or cash equivalents.

Notification Requirement

• All entities within an MNE group in Aruba must notify the Tax Authorities of Aruba (DIMP) regarding the reporting entity’s identity and jurisdiction.

Submission Platform

• Reports must be filed electronically through the DIMP online tax portal, using the OECD’s standard XML schema.

Resource

Filing details and submission guidelines are available on the DIMP website:
Departamento di Impuesto Aruba.

Filing Deadlines

• CbC Reports: Must be submitted within 12 months after the end of the MNE’s fiscal year.
  • Example: For a fiscal year ending 31 December 2023, the report must be filed by 31 December 2024.
• Notifications regarding the reporting entity must be submitted before the end of the fiscal year.

Penalties for Non-Compliance

Penalties and Consequences

Failure to comply with CbCR regulations in Aruba may result in:

• Monetary fines, which can vary depending on the severity of non-compliance.
• Audits and investigations by the Tax Authorities of Aruba (DIMP).
• Potential reputational damage and increased scrutiny from other tax jurisdictions.

Mitigation Measures

Entities that fail to comply may appeal or request a waiver if they can demonstrate reasonable cause for non-compliance.

Confidentiality and Data Exchange

Data Protection

• Aruba ensures the confidentiality of CbC reports, using the information strictly for tax risk assessment.
• Data is only exchanged with jurisdictions that have an active tax treaty or exchange agreement with Aruba.