The Aruba Tax Regime is currently being reformed. Changes have been proposed and introduced for several taxes, the Personal Income Tax (PIT) among others.
The Aruba PIT is a progressive tax that imposes a lower tax rate on low-income earners compared to those with a higher income.
The PIT, initially consisting of 14 categories, currently consists of 5 tariff brackets of 0%, 14%, 25%, 42% and 52% respectively, as of January 1st 2019.
The PIT was further reduced as of January 1st 2020 by increasing the tax-free allowance from Awg 27,751 to Awg 28,861, which means that a person with a monthly income of Awg 2,400 or less is not subject to PIT.
The PIT will be reduced even further as of January 1st, 2021. The tariff brackets of 14% and 25% are further reduced by 2% to 12% and 23%, respectively.
The above applies in the same way to the Wage Tax.