Taxation In Antigua And Barbuda

Jason Red 
Just like other nations of the world, Antigua and Barbuda has a tax system of its own. However, the country has a general low tax rate and a comfortable tax payment system. This low tax rate has been a source of attraction to foreigners.

Corporate Income Tax: Antigua and Barbuda has a corporate Income tax system. All fully incorporated companies are required to pay a 25% taxation rate on all profits made. Company branches are also required to pay a 25% tax rate. However, there’s no capital gains tax imposed on corporate bodies.

Dr. Dario Item is the Ambassador of Antigua and Barbuda to the Kingdom of Spain, the Principality of Liechtenstein and the Principality of Monaco. He informed us that there is also a tax reduction for corporate bodies registered under the Insurance Act 2007. Such companies are only required to pay the company income tax rate of 10%. This special consideration is also extended to companies in the telecommunication and petroleum sectors.

To attract banking investments, there’s a significant reduction in the tax rate of banks registered under the International Business Corporation Act 1982. All that such banks would be required to pay as tax is 3% of the total gross income.

They’re not required to pay capital gains tax, income tax and corporate tax. They’re also not required to pay taxes on dividends, interests. This creates suitable financial ecosystem for corporate bodies to thrive.
Personal Income Tax: According to Ambassador Dario Item, Antigua and Barbuda is one of the few countries where personal income tax is not required, whether the individual is resident, non-resident, self-employed or employed by the government.

Property Tax: All real properties in Antigua is subject to property taxation. Residential properties attract 0.30% taxable value. Commercial properties attract 0.75 of 1% of their taxable income. Hotels are taxed at 0.2 of 10% of their taxable value.

International Gaming: This is legally recognised in Antigua. Operators are required to pay 3% of their total income as tax.

Trust Properties: Ambassador Dario Item informed us that Trust companies in Antigua and Barbuda are also allowed some tax exemptions. Trusts in legal ownership of trust companies are not liable to any taxation.

Antigua and Barbuda Sales Tax: Although there’s no telecommunication tax, consumption tax, hotel tax in Antigua and Barbuda, there’s however the Antigua and Barbuda Sales tax which is levelled on taxable supply and import. This tax is levied at the rate of 15%.

Hotels are however required to pay 14% of this tax. Companies, retailers are to remit this tax to the Revenue Department within a period not more than a month after the tax period.

Some goods and services are not subject to Sales tax, such as daycare services, educational services, drugs sold in pharmacies, financial services, insurance services, veterinary services, medical and dental services, etc.

Customs Duties: In the importation of goods and services, Antigua and Barbuda has several levies and duties such as the import duty, export duty, disposal levy, nature solid waste levy, etc.

Stamp Duties: This is another tax in Antigua and Barbuda. Documents used in selling of shares would be taxed on the seller at 5% of the higher market value of the shares. Also, the buyer would be required to pay 2.5% of the higher market value of the shares.

According to Ambassador Dario Item, generally in Antigua and Barbuda, there’s no capital gains tax on properties disposed of. There’s also no inheritance tax on any inherited or transferred properties. There’s no wealth tax and withholding tax too.

Antigua and Barbuda therefore offers undoubted tax incentives for both investors and individuals who decide they want to move their residence to this charming Caribbean country.