Connect with us

EMEA

Dutch Ministers Defend Curaçao-Malta Tax Treaty Amid iGaming Scrutiny

Published

on


Dutch Ministers Defend Curaçao-Malta Tax Treaty Amid Industry Scrutiny

The Curaçao-Malta tax treaty has come under scrutiny, sparking debates about its implications for the iGaming industry. Dutch ministers have stepped in to clarify the treaty’s intent and impact, emphasizing its role in preventing double taxation.

Discover how this treaty is designed to benefit various economic sectors, including iGaming, while addressing concerns about potential tax evasion. Understand the measures in place to ensure transparency and fairness in taxation.

Learn about the ongoing reforms in Curaçao’s gaming regulations and how they aim to enhance the island’s reputation and regulatory framework. See how these changes might influence the global iGaming industry.

Stay informed about international tax treaties and their impact on the gaming sector. Engage with industry experts to understand the broader implications and future developments in gaming regulations.

Advertisement

Dutch Ministers Defend Curaçao-Malta Tax Treaty Amid Industry Scrutiny

The Netherlands – Dutch Finance Secretary Marnix van Rij and Minister of Foreign Affairs Hanke Bruin Slot have responded to questions regarding the tax treaty between the Dutch Caribbean territory of Curaçao and Malta, both prominent iGaming hubs. The New Social Contract (NSC) party had expressed concerns that gambling companies might exploit the treaty to transfer profits to other entities, potentially avoiding taxes.

Treaty Objectives and Benefits

Van Rij confirmed that iGaming companies do benefit from the tax treaty but clarified that this is consistent with benefits available to other economic sectors. He refuted claims that the treaty allows gambling companies to shift profits tax-free, emphasizing that the treaty’s primary purpose is to prevent double taxation. This involves determining which country has the right to levy taxes and ensuring the exchange of tax-related information between jurisdictions.

The approval act for the tax treaty was submitted in March of the previous year by the then Minister of Foreign Affairs, Wopke Hoekstra. The treaty outlines agreements to prevent double taxation, defining tax jurisdictions and mandating information exchange to ensure compliance and transparency.

Advertisement

Addressing Company Location and Structure

In response to queries about the actual location of gambling companies, Bruin Slot explained: “Gaming companies consist of a mix of different types of entities, including letterbox companies. A significant number of companies are genuinely based in Malta, with on-site employees. The sector is popular as an employer for young people and European expats who relocate to Malta.”

Van Rij further explained that the tax treaty applies uniformly to all companies, including those in the gambling sector. He noted that in both Curaçao and Malta, many businesses have transitioned from offshore to onshore operations. He emphasized that the treaty prevents the transfer of profits to third parties without paying taxes, as it only eliminates double taxation on the same income.

Curaçao Gaming Reforms

Advertisement

In March, the Curaçao Gaming Control Board (GCB) issued guidelines for operators applying for direct licenses under the island’s current gambling legislation. The deadline for applications from existing sub-license holders was set for March 31.

The guidelines clarify the application process, detailing the required documents: the online gaming application form, the personal history disclosure, and the corporate and business information form. Current master licensors are responsible for registering their sub-licensees and associated domains.

This application process pertains to direct licenses issued under Curaçao’s existing legislation, the National Ordinance on Offshore Games of Hazard (NOOGH). Meanwhile, the island’s parliament is finalizing new legislation, the National Ordinance for Games of Chance (LOK), aimed at enhancing the reputation of Curaçao’s iGaming industry and increasing benefits to the island.

LOK Legislation and Its Impact

Advertisement

During the first reading of the LOK in Curaçao’s parliament, Finance Minister Javier Silvania urged legislators to expedite approval, asserting that the new legislation would significantly improve Curaçao’s international reputation. The LOK is expected to bring more stringent regulatory standards and ensure that the benefits of the iGaming industry are more effectively channeled to the local economy.

Industry Response and Future Implications

The iGaming sector is closely monitoring these developments. The reforms in Curaçao are particularly significant as the island is a major hub for online gaming operators. Enhanced regulations and stricter compliance measures are likely to affect the operational dynamics of companies based there.

Van Rij and Bruin Slot’s defense of the Curaçao-Malta tax treaty underscores the Dutch government’s commitment to maintaining fair and transparent tax policies while supporting the growth of various economic sectors, including iGaming. The emphasis on preventing double taxation and ensuring compliance reflects a broader effort to align with international tax standards.

Advertisement

Conclusion

The recent scrutiny of the Curaçao-Malta tax treaty has highlighted important aspects of international tax regulation and its impact on the iGaming industry. Dutch ministers have clarified the treaty’s intent and defended its provisions, emphasizing the need for fair and transparent tax practices. As Curaçao advances its gaming reforms, the industry will be closely watching the outcomes and adjusting to the new regulatory landscape.

Jerome, a valuable addition to the Gamingo.News team, brings with him extensive journalistic experience in the iGaming sector. His interest in the industry was sparked during his college years when he participated in local poker tournaments, eventually leading to his exposure to the burgeoning world of online poker and casino rooms. Jerome now utilizes his accumulated knowledge to fuel his passion for journalism, providing the team with the latest online scoops.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

Gamingo.News stands as a premier digital destination dedicated to delivering top-tier news and insights in the gaming and gambling industry. This specialized media outlet garners the attention of over 120,000 readers each month, providing them with engaging content, current news, and in-depth analyses.
The platform offers extensive coverage of various facets of the gaming world, including both online and brick-and-mortar gaming, wagering, esports, updates on regulations and compliance, as well as technological innovations. Regular content includes daily news stories, press releases, unique interviews, and comprehensive reports on events.
Moreover, Gamingo.News organizes webinars pertinent to the industry and offers detailed reports, establishing itself as a comprehensive information source for those interested in learning about gaming market operators, suppliers, regulators, and professional services. The portal's main objective is to keep its large audience informed about the latest news, trends, and developments in the gaming and gambling sectors. It focuses particularly on the European igaming market but also covers significant global news, proving to be an invaluable tool for gaming professionals, operators, and enthusiasts.

For inquiries, reach out at: sales@gamingo.news

For editorial or PR submissions, contact: media@gamingo.news

Copyright © 2024 Gamingo.News.