Antilles Foundation

On 1 November 1998 the Private Foundation was introduced in the Netherlands Antilles. Three important characteristics of the foundation are that:

• Payments may be made to the founders or third parties;
• Payments are not required to have an idealistic or social purpose;
• The Private Foundation is not allowed to carry on a business or enterprise. However, holding shares is for
example not considered to carry on a business.

A Private Foundation is established by means of a notarial deed in the Netherlands Antilles. The deed of formation should include the articles of association, which state the name and purpose of the foundation and the method of appointing directors. The Private Foundation should then be registered at Chamber of Commerce and Industry in Curacao.

Taxation
In principle, a Private Foundation established for all intents and purposes in the Netherlands Antilles is not subject to profit tax and gift tax in the Netherlands Antilles, and thus need not to report to the tax authorities.

Donations made to Private Foundations by non-residents are not subject to gift tax in the Netherlands Antilles. Donations made by Private Foundations are explicitly exempt from gift tax in the Netherlands Antilles.

Donations of assets to a Private Foundation are usually subject to the highest rate of gift tax (donations to third parties) in the country of the donor. The rates of gift tax and inheritance tax and the way in which tax is levied differ greatly from country to country.