Rona wrote this article yesterday. Not sure if the ruling applies to Tourists that own property?
https://batibleki.wheninaruba.com/ar...nd-tax-refund/
ARE WE GETTING A REFUND??
Back in 2019 the Government of Aruba implemented a few changes in the State Ordinance Ground Tax, SOGT.
The most significant of which was a change of the applicable ground tax rates for both individuals and legal entities.
Furthermore, the tax-free amount of Afl. 60,000 that could be deducted from the taxable base of the property was also abolished for all taxpayers.
Before 2019 the applicable rate was 0.4% for both individuals and legal entities. As of 2019 the rate was changed as follows for individuals:
- Property value Afl. 120,000 or less: l0%
- Property value as of Afl. 120,000 but less than Afl. 250,000: 0.2%
- Property value as of Afl. 250,000 but less than Afl. 500,000: 0.3%
- Property value as of Afl. 500,000 but less than Afl. 750,000: 0.4%
- Property value of Afl. 750,000 or more: 0.6%
For other taxpayers (not individuals) the rate was always 0.6% as of the tax year 2019.
According to the SOGT, the ground tax assessments are determined for a period of 5 years. Grant Thornton explains, in their tax newsletter that a recent decision of the Joint Court of Justice of Aruba, Curacao, Sint Martin and the BES islands in regards to an Aruban ground tax case, has significant implications.
While our tax rate was supposed to be fixed for a 5-year period, 2017 through 2021, GOA raised it in 2019.
As a result, someone asked the question, in court, whether the Tax Authorities could implement the rate increase and the abolition of the tax-free amount in 2019, within the 5-year period of no changes for the ground tax assessments.
This particular case involved a taxpayer who filed an appeal against his/her 2019 ground tax assessment. The Joint Court decided that: NO. The law does not allow for a change of the tax assessment within the 5-year period. The new assessment imposed, with the higher rate for 2019 should be completely annulled.
The taxpayers should have received the original ground tax assessment in 2019, as determined in the first year (2017) of the 5-year period with a rate of 0.4%.
But, the new rate must be annulled for all taxpayers that objected to the assessment.
I did not object.
Then what, I pay and the objectors are exempt??
The court still has to deal with other issues, but me question remains ARE WE GETTING A REFUND??
www.grantthornton.aw
@GrantThorntonAruba