The Aruba Personal Income Tax (and Wage Tax) further reduced as per January 1st, 2021

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.