News

Redevelopment of the Refinery Site a Serious Option In the recently leaked EC OR Y S report of March 2012, “ A sustainable future for Curaçao – Str ategic options for Isl a and the Isl a site,” it was concluded that an upgrade (modernization) of the Isl a refinery is technically, commercially and financially viable. The g eneral conclusion that can be drawn from this report is that the redevelopment of the Sch ottegat area is at least as economically profitable as the development of alternative areas on the island and will probably generate a higher welfare. The r efinery, which is run by Venezuelan state oil company, PDV SA, pr oduces 335,000 barrels of oil products per day. Acc ording to the inspection report, “ A k ey recommendation is to start the search for potential investors and operators immediately, and at the same time, start getting into position to close the Mem orandum of Und erstanding with PdV SA b efore the contract expires in 2019.”

Changes in Formal Tax Law In April of this year, the Parliament has approved several changes to the General Tax Ordinance ( Algemene Landsverordening Landsbelastingen or ALL). A few changes are included in this ordinance, one of which is the mandatory annual provision of information. It is mandatory for employers to provide information with regard to the wages paid to employees and pension funds, including wages paid to free-lancers. Ins urance companies must also provide information with regard to pensions. With the aim to improve overall tax compliance, government has now included a new provision in the ALL that allows the tax department to publish regulations that would make it mandatory for banks to provide the amount of interest paid to residents. Insurance companies must also provide information with regard to the interest included in a benefit from a capital insurance. Currently, it is not mandatory for insurance companies to provide information on annuities, but this may be introduced in the near future. It is to be expected that government will announce these obligations before the end of this year. In that case, it is likely that local banks and insurance companies may have to provide information on interest and annuities paid to residents in the year 2013.

Confidence in Curaçao’s Economy has improved In the opinion of Curaçao entrepreneurs, confidence in the economy has improved slightly. Thi s is according to the most recent economic survey of the Central Bur eau of Statistics (C BS), which is based on the first six months of 2013.

Acc ording to the C BS, fe wer entrepreneurs indicated that the economy had worsened than what was reported last year, with a decrease from 56 percent in December 2012 to 49 percent six months later. The C BS also reports that the percentage of companies expressing confidence in the future clearly increased in the first half of 2013, an increase from 41 to 51 percent of the entrepreneurs. Confidence has increased especially with smaller companies. In the climate of investment, opinions were more positive in June 2013 compared to December 2012, with the percentage of companies indicating a negative climate of investment decreasing from 40 to 38 percent. Alt hough the differen ces are small, these results indicate an end to the negative tr end since June 2011. The Economic survey involves a random visit of most companies with ten or more employees. For more information, go to www.cbs.cw.

Renovations at Hato Airport Underway

The approval was given to start renovations at Hato airport with Curaçao Airport Partners investing 17 million guilders for the project. The renovations will include the building of the technical department on the east side, which is to function as a F BO (fixed-base operator) facility, mainly for private aircrafts. A three-year renovation project of the runway and taxiway, involving almost six million guilders, is already underway. At the end of this year new chairs will be placed in the departure hall, air-conditioning in the check-in hall, a new x-ray machine for luggage and a new lavatory facility. The Curaçao Airport Plaza, which is opposite the terminal building, will be completed within one year and will have more catering and retail. The old terminal on the west side will be demolished and an expansion will be built on that spot. In the future, there will be an expansion of parking facilities with the possibility of a parking garage.