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BASIC COUNTRY FACTS

Aruba

Oranjestad

  • Papiamento 
  • Dutch
  • English
  • Spanish

105,845

Aruban florin

.aw

+297

Aruban florin

STATUTORY LABOR REQUIREMENTS

Probation Period

  • This trial period must be agreed to in writing and may not exceed two months; any stipulation to the contrary is null and void.

Annual Leave

  • Every employee is entitled to an amount of vacation days equal to at least three times the contracted number of working days per week with the understanding that an employee who works six days a week is entitled to at least fifteen vacation days per year.

Public Holidays

  1. New Year's Day (1st January)
  2. G.F Betico Croes Day (25th January)
  3. Carnival (24th February)
  4. National Anthem & Flag Day (18th March)
  5. Good Friday (10th April)
  6. Easter Monday (13th April)
  7. Ascension Day (21st May)
  8. Christmas Day (25th December)
  9. Boxing Day (26th December)

Maternity Leave

  • An employee is entitled to payment of 100% of her salary when she is on pregnancy- and maternity leave. 
  • The pregnancy leave can be two to six weeks before the estimated due date and the maternity leave can be eight to twelve weeks as of the date the employee gave birth. 
  • The total amount of time on leave (pregnancy leave and maternity leave combined) must in all events be at least fourteen weeks.

Paternity Leave

  • There is no paternity leave

Sick Leave

  • In the event an employee is unable to perform his/her labor due to sickness (that is not intentionally caused by the employee), the employer is obligated to continue payment of (100% of) the employee’s salary during a relative short period of time (unless otherwise stipulated in the labor agreement).

Work Hours

  • For regular workers the maximum working hours per week is 45 hours provided the employee does not work more than eight hours a day. 
  • If the workweek consists of five days or less, the employee should not work more than 8½ hours a day.

Overtime

  • In the event the employer requires its employees to work overtime, an overtime permit has to be obtained.  
  • After obtaining the permit an employee is allowed to work longer hours, in which event the employer is obliged to pay the employee overtime.
  • The overtime percentages to be paid are as follows:
    • after working hours: 150% (working hours are: the regular working hours of the employee during that day);
    • during the employee’s break: 150%;
    • during the half day of rest: 150% (after January 1, 2014: 175%);
    • during the full day of rest: 200%;
    • during a public holiday or a remembrance day: 200% (after January 1, 2014: 250%);

Notice Period

  • The mandatory notice period to be taken into by an employer is:
    • In case of an employment of less than five years: one month
    • In case the employee has been employed more than five but less than ten years: two months
    • In case the employment has lasted longer than ten years but less than fifteen years: three months
    • In case the employment has lasted more than fifteen years: four months.

Severance

  • Employees will receive: -
    • 1 week pay per each year between two and 10 years of service
    • 1.5 week pay per each year between 11 and 20 years of service
    • 2 weeks' pay for each year of services above 20 years.

13th Month Salary in Brazil

  • No
  • There is no evidence that there is a requirement to pay the 13th or the 14th month.
  • Instead the only holiday bonus is given to unemployed people or pensioners.

INCOME TAX 

  • Aruba residents are taxed on their worldwide income
  • Nonresidents are taxed only on Aruba source income
  • Income is taxed under a scheduler system
  • Employment income, the results derived from conducting a sole proprietorship, and revenue from immovable and moveable property are, in principle, considered taxable income

Taxable Income

Rate

AWG 27,751 -  61,338

14%

AWG 61,339 – 91,120

25%

AWG 91,121 – 169,534

42%

Over 169,534

52%

DEDUCTIBLE EXPENSES

  • Subject to certain restrictions, deductions are granted for medical expenses and insurance, retirement annuities, mortgage interest etc.
  • Personal allowances are available to taxpayers and their spouses, children, and other dependents
  • Special allowances are available under the expatriate regime and fringe benefits policy

Deductible Expenses

  • Subject to certain restrictions, deductions are granted for medical expenses and insurance, retirement annuities, mortgage interest etc.
  • Personal allowances are available to taxpayers and their spouses, children, and other dependents
  • Special allowances are available under the expatriate regime and fringe benefits policy

IMMIGRATION

  • A work- and residence permit to work in Aruba on a paid basis requires a labor market review. 
  • It is required that you work for only one Aruban employer in a specified job title.
  • You must apply for this labor market test at the DPL. 
  • After receiving a statement from DPL, you can apply to DIMAS for your residence permit application. 
  • DIMAS then tests your admission requirements.
  • There is no need for labor market testing for resident domestic staff. 
  • There are still more cases where you are entitled to exemption, and no labor market testing is required. 
  • Individuals should check with the DPL to determine whether they are eligible for exemption.

Type of Visa/Permit

Documentation

Validity

Eligibility

Tourist Visa

  • Valid Passport
  • Passport size photos
  • Completed application form
  • A valid return- or onward ticket

Maximum 180 days

  • Persons who are considered a tourist are those who travel to Aruba for one of the following purposes: vacation and relaxation, sport, health reasons, family matters, study, religious purposes or a business visit.

Work Permit

  • Valid Passport
  • Passport size photos
  • Completed application form
  • Employment contract
  • Health certificate

1 year

  • Any foreigners who want to exercise a profession must have a work permit.
  • The work permit will normally be granted only if there are no qualified persons locally available.

VALUE ADDED TAX

  • Turnover tax is levied on the sale of goods and the provision of services
  • The standard turnover tax rate is 1.5%
  • Exemptions are available

Turnover Tax

Standard Rate

1.5%

WITHHOLDING TAX

Dividends

  • A 0%, 5%, or 10% withholding tax may be levied on dividends paid to nonresident companies, although exemptions are available

Interest

  • Aruba does not levy withholding tax on interest

Royalties

  • Aruba does not levy withholding tax on royalties

Fees for Technical Services

  • Aruba does not levy withholding tax on technical service fees

WHT

Dividends

0%/5%10%

Interest

0%

Royalties

0%

Technical Service Fees

0%

TERMINATION

Generally, an employment contract can be terminated in the following ways:

  • Termination by giving notice, in which event the prior approval from the Director of the Department of Labor and Research (Directie Arbeid en Onderzoek) has to be obtained pursuant to the Ordinance on Termination of Employment Agreements 
  • Without such consent any termination by giving notice will be considered null and void;
  • Termination by mutual consent
  • Dissolution of the employment agreement by the Court of First Instance of Aruba;
  • Immediate termination of the employment agreement, which is only allowed if there is an urgent reason, justifying an immediate termination. Such urgent reason and the immediate termination would immediately have to be informed to the employee.
  • The mandatory notice period to be taken into by an employer is:
  • In case of an employment of less than five years: one month
  • In case the employee has been employed more than five but less than ten years: two months
  • In case the employment has lasted longer than ten years but less than fifteen years: three months
  • In case the employment has lasted more than fifteen years: four months.
  • Employees will receive: 
  • 1 week pay per each year between two and 10 years of service
  • 1.5 week pay per each year between 11 and 20 years of service
  • 2 weeks' pay for each year of services above 20 years.

STATUTORY BENEFITS

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

PAYMENTS AND INVOICING

  • The deadline for filing the income tax return is within two months after receiving the invitation for filing the tax return. 
  • If no invitation has been received from the Tax Inspector within 6 months after the calendar year, the taxpayer has the obligation to request for the issuance of the tax return within 15 days after this period (ultimately by July 15).
  • In principle the calendar year end, unless the tax payer requests a different tax year. 
  • Resident taxpayers have to file an income tax return based on their worldwide income. 
  • Non-resident taxpayers need to file an income tax return for certain Aruba source income (e.g. income related to real estate in Aruba, income generated through employment in Aruba, etc.)
  • Joint filing is permitted

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