ORANJESTAD (AAN): Following a recent public parliamentary meeting, Minister of Economic Affairs and Finance Geoffrey Wever provided further clarification on several newly introduced fiscal incentives. These include the Expat Regulation, preferential policies for San Nicolas and Oranjestad, the Starters Regulation, and new activities within Aruba’s Free Zone.
Minister Wever explained that the Expat Regulation, also known as the Fringe Benefits Regulation, offers tax-efficient incentives for employers, allowing them to provide certain benefits to employees in a fiscally favorable way.
Examples include compensation for vehicle expenses, representation costs, and telephone usage. According to the minister, these regulations were outdated and have now been fully modernized, with adjusted limits on the amounts employers can offer their employees.
The updated structure also includes compensation for internet expenses, which was not previously allowed. Wever noted that modern work environments require employees to stay connected, especially as remote and hybrid work models become more common.
Regarding company vehicles, previous regulations required employers to add 15% of the vehicle’s catalog value to the employee’s taxable income. This rule has now been expanded to include hybrid and electric vehicles.
“If an employer provides an electric vehicle, only 5% is added instead of 15%,” Wever explained. “This supports the energy transition and helps make Aruba cleaner and less dependent on imported heavy fuel oil (HFO).”
The government has already decided to transition its entire vehicle fleet to electric vehicles, and these incentives are designed to encourage the private sector to follow. Import duties on electric vehicles have also been reduced.
Additional adjustments were made to compensation limits for breakfast, lunch, and dinner allowances, as well as for housing benefits provided by employers.
Relocation compensation was also revised. Employers recruiting employees from abroad may now cover relocation expenses of up to 20,000 Aruban florins. According to Wever, this policy supports the continued professionalization of Aruba’s economy.
Importantly, the minister emphasized that the regulation is not only aimed at foreign professionals, but also represents a serious effort by the government to encourage Arubans studying abroad to return home and work in Aruba.
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