On 1 September 2026, the Parliament of Curacao passed the Minimum Tax Ordinance (the Ordinance), implementing the Organisation for Economic Co-operation and Development (OECD) Pillar Two framework in Curaçao. The legislative proposal was originally submitted to Parliament in December 2025 and will retroactively enter into force following its publication in the Official Gazette. The proposal was recently supplemented through a second memorandum of amendment (in Dutch: tweede nota van wijziging), so that the OECD's Side-by-Side Package and a number of recent technical amendments have also been incorporated.

This Tax Alert outlines key features of the legislation as passed by Parliament and the main implications for multinational groups with a presence in Curacao.

Adoption of the Minimum Tax Ordinance

In line with a policy position announced earlier this year, and outlined in EY Global Tax Alert, Curacao's Pillar Two policy position, dated 20 May 2026, Curacao's Pillar Two legislation provides for an Income Inclusion Rule (IIR) that applies only to low-taxed group entities located outside Curacao (a non-domestic IIR), but not for a Qualifying Domestic Top-up Tax (QDMTT) or Undertaxed Profits Rule (UTPR). Accordingly, a Curacao-based parent entity may be subject to Curacao top-up tax on low-taxed group entities in other jurisdictions, while low-taxed profits arising in Curacao are not subject to a domestic top-up tax.

This approach is reflected in the Ordinance that Parliament passed on 1 September 2026. During the legislative process, the original proposal submitted in December 2025 was revised through two memoranda of amendment; most recently, the second memorandum of amendment incorporated the Side-by-Side Package and certain technical amendments. The key amendments are discussed below, and their effective dates are summarized at the end of this Alert.

Side-by-Side Safe Harbor

The Ordinance incorporates the OECD's Side-by-Side Package, which, among other things, introduces a safe harbor for multinational groups that have an ultimate parent entity (UPE) located in a jurisdiction with a qualifying equivalent minimum tax system. To meet these requirements, the UPE jurisdiction must have a qualifying domestic tax system, a qualifying worldwide tax system and rules in place allowing foreign income taxes to be credited.

Currently, only the United States (US) tax system qualifies. Accordingly, if the safe harbor is elected, any top-up tax otherwise arising under Curacao's IIR for a multinational group with a US UPE is reduced to nil, effectively switching off the Curaçao IIR for that group.

Technical amendments

Alongside the Side-by-Side Package, the second memorandum of amendment introduced a package of technical amendments that align the Curacao legislation with recent international developments. The amendments are largely relieving in nature and simplify the application of the rules if the relevant conditions are met. Nevertheless, in-scope groups should assess the overall effect of the package on their specific circumstances before electing to apply it.

Entry into force/effective dates

The effective dates differ per component and can be summarized as follows:

Compliance obligations and filing deadlines

With the adoption of the Ordinance, the compliance framework is now confirmed. The Ordinance operates on a self-assessment basis and imposes two separate obligations on in-scope groups with Curacao constituent entities. Both may apply even if no IIR top-up tax is ultimately due, subject to the applicable central filing arrangements.

1. Information return or notification. Depending on the group's filing structure, a Curacao constituent entity may need to file a local Pillar Two information return or, if the conditions for central filing are met, a notification identifying the filing entity and the jurisdiction in which the information return is filed. The deadline is 18 months after the end of the transition year (2025), and 15 months after the end of each subsequent year.
2. Minimum tax return and payment. A separate minimum tax return must be filed to report any IIR top-up tax due in Curacao. The return must be filed, and any tax paid within 20 months after the transition year (2025), and within 17 months after the end of each subsequent year.

Next steps

Although the Ordinance will only formally enter into force upon its publication in the Official Gazette, this is a mere formality, and the Ordinance is expected to apply retroactively from 1 January 2025. In-scope groups should therefore assess the Ordinance's impact promptly. Key priorities include confirming whether the group is in scope, determining whether any Curacao IIR top-up tax may arise, assessing eligibility for the Side-by-Side Safe Harbor (particularly for US-parented groups), and identifying the applicable filing deadlines and central filing options for their Curacao entities.

In-scope groups should reach out to a knowledgeable tax advisor to discuss how the Ordinance may affect their group and which steps may need to be taken. EY Curacao will continue to monitor the publication in the Official Gazette and the formal entry into force of the Ordinance, and will share further updates as appropriate.