In 1999, the Netherlands Antilles adopted new tax legislation under the heading of the New Fiscal Framework (NFF).

The jurisdiction's fiscal regime is fully compliant with the current guidelines from the European Commission (EC), and the Financial Action Task Force (FATF).

The Netherlands Antilles are not included in the threatened “black list” of errant offshore jurisdictions of the Organization for Economic Co-operation and Development (OECD).

The NFF involves the abolition of the distinction between offshore and onshore companies, at least for new formations, and the reduction of the profit tax rate to 34.5%.

Under the NFF, a 100% participation exemption has been introduced for profits derived from shareholdings in resident companies and qualifying Dutch-resident companies.

The exemption is 95% for shareholdings in other non-resident companies, which results in an effective tax rate of 1.73%.