ATLAS’s client portfolio includes several hotels. Hotels encounter numerous tax issues.
For example, they must not be late remitting the wage tax and social security contributions on the wages paid to their employees. The reparation allowance (reparatietoeslag) may be offset against these remittances. In Aruba, moreover, it is important not to overlook the mandatory general pension scheme introduced for employees on 1 January 2012.
Operators of hotels in Aruba are also liable to pay tourist tax on the considerations that tourists pay for using their hotel rooms. It is important to distinguish between those considerations and the amounts paid for other services, for example Internet access and the laundry service. Those services are subject to sales tax (belasting op bedrijfsomzetten, ‘BBO’). Special rules apply if the tourist pays an all-in price for the use of the hotel room and for food and drinks.
In practice, most hotels include casino operations. In Aruba, those hotels are liable to pay gambling tax (speelvergunningsrecht) also.
If the entity that operates a luxury hotel meets certain conditions, it may qualify for the ‘imputation payment regime’ (imputatieregime) as it is commonly known, resulting in a considerable reduction in the profit tax rate.
Lastly, the other tax issues described on this website are generally highly relevant for hotels also. The Tax Partners at ATLAS will gladly tell you more.