Antigua and Barbuda is a sovereign island state that is best known for its 365 beautiful white-sand beaches but beyond the tropical tranquility of this vibrant island, a unique opportunity awaits creating a convenient atmosphere for the expatriate seeking financial freedom. Like many others, you may be confined to your country’s tax margins which force you to cough up high percentages of your income. It is no surprise that scores opt for complete relocation to low-tax or no-tax jurisdictions.
Since 2005, Antigua and Barbuda have been boasting of their convenient tax benefits therefore attracting people from all corners of the world. Sounds interesting? Read on and find out everything you need to know about Tax in Antigua and Barbuda and becoming a tax resident. But does Antigua have an Income tax? In this article, we explain all there is to know about Antigua tax.
Antigua Personal Income Tax Rates
Antigua and Barbuda have no personal income tax. Yes, you read that right! In this beautiful twin-island state, no taxes are deducted from personal income. For this reason, individuals from over the world flock to this picturesque piece of paradise to gain tax residency, allowing them to be more financially secure and free. If you are interested in becoming a tax resident of Antigua and Barbuda, let us know and we will guide you through the process.
Antigua Corporate Tax rates
The corporate tax, also known as corporation tax, is a direct tax imposed on income corporations. In Antigua and Barbuda, registered, incorporated, or continued companies must pay a flat tax of 25% on all profits. An exception is made for banks who are charged a corporate tax rate of 22.5% under certain conditions:
- They must offer mortgages.
- They must maintain an interest rate of 7% or less throughout the year
For companies registered under the Insurance act 2007, petroleum companies, and telecommunication companies, there is a flat rate of 10%.
Additionally, there is no tax on capital gains, no surtax, and company branches are taxed the same as subsidiaries.
IBCs in Antigua
An IBC is international business cooperation or an offshore company formed under the laws of some jurisdictions as a tax neutral company.
IBCs in Antigua benefit from a special tax regime that allows them to be exempt from paying all direct taxes to include dividends, interest, and other returns. They are also exempt from corporate tax, income tax, and capital gains tax.
Banks formed under the IBC Act 1982 must pay a 3% tax on gross income.
The government of Antigua and Barbuda have over the years adjusted the country’s tax reforms to cater to companies and investors making the financial environment more favorable. Investing in Antigua and Barbuda holds many advantages for high-net-worth individuals and low tax rates make it even easier to have successful endeavors.
IBC formation
The formation of an IBC in Antigua is done by a registered trust company, accountant, or attorney. This process is very speedy and in some cases can be completed within a day.
IBCs must adhere to the government stipulations to fully benefit from the incredible tax exemptions. These include having a registered office and resident agent in the country. The resident agents’ role is to issue annual license payments to the government. IBCs licensed to carry out international banking are charged US$15,000.00 while those licensed to carry out international insurance business are charged US$10,000.00.
You can outsource this entire procedure to us and we will take care of everything from arranging the registered office and agent to following up until your business gets approved. Relocate Antigua provides company formation services and in-depth advice on how to form and successfully operate your Antigua business. Get in touch with us and we will handle all the aspects of your company’s formation.
Property Tax
Property tax is applied to all properties in Antigua but not in Barbuda. For residential properties in Antigua, the tax rate is determined by the market value and varies from 0.10% to 0.50%. These rates depend on whether the property is residential or commercial. Residential properties are taxed at 0.30%. Hotels are 1/5 of 1% of their taxable value. Other commercial properties are liable to pay ¾ of 1% of their taxable income. The land tax rate is determined by the type and size of the land. Residential land is taxed at 0.20%.
Purchasing property in Antigua just might be your ticket to tax residency so if you are interested in this venture and would like more information, feel free to contact us. We offer real estate services and will guide you in making the best investment decision. Furthermore, we will manage your property and provide you with all the necessary services you will need to get settled in your new home.
Internet Gaming facilities
If your field is in iGaming, then you will be pleased to know that internet gaming institutions are considered to be financial institutions under the FSRC, allowing operators to enjoy the comfort of low tax rates i.e- Operators are only liable to pay 3% of their earnings. If you would like to obtain your Antigua iGaming License, we can assist with that. Give us a call today!
Antigua was one of the first countries to begin legally operating Internet gaming facilities and since then has remained one of the most prominent countries in the industry. For more information on iGaming, check out our article on iGaming in Antigua.
Other incentives and concessions for companies
Apart from IBCs, other companies may obtain more incentives by applying through the Antigua and Barbuda Investment Authority and will be given concessions according to the category of their investment. Trusts which are controlled by trust companies in Antigua are not subject to taxes on income, inheritance, capital gains and assets, and other taxes.
Sales Tax
In 2007, the government of Antigua and Barbuda removed several taxes including Consumption tax, hotel tax, Hotel guest tax, Hotel guest levy, Restaurant and catering services tax, and telecommunications tax. The country now has a value-added type tax called Antigua and Barbuda Sales Tax (ABST) which charges a flat rate of 15% and a reduced rate of 14% applicable only to hotels. In the United Kingdom and many other countries, the sales tax is referred to as VAT or value-added tax.
ABST is charged on taxable supply and taxable import and is collected by retailers and paid to the government one month after the end of the tax period. All retailers who conduct taxable activity must register at the inland revenue department.
Sales tax Incentives
In some instances, including Non-taxable activities, there is no ABST requirement. But what are non-taxable activities? Simply put, they are activities carried out as private recreational pursuits or hobbies including the making of exempt supplies.
Exempt supplies are goods and services which are not subject to taxes. These include:
- Financial and Insurance Services
- Medical services including dental, optical, and veterinary services
- Export of unprocessed agricultural products
- Drugs and medicines sold in pharmacies and medical centers
- Residential rents and sale of residential real property
- Services provided in nursing homes for persons who need permanent care
- Educational services including both private and state-provided education
- Textbooks approved by the Ministry of Education
- Veterinary services
- The services of funeral directors and undertakers
- Daycare services
- Transportation of passengers by land, sea, or air within Antigua and Barbuda
- International transport services
- Unprocessed agricultural products
- lotteries conducted by Antigua & Barbuda Lotteries Commission
Returns and tax periods
A tax period is a period lasting one month in which a taxable person must pay ABST taxes to the Inland Revenue Department. Returns are due on the last day of the month following the end of the tax period whether or not tax is payable in respect of that period. For example, the tax return for September 2007 is due by October 31st, 2007.
Penalties
Of course, there are certain penalties that you will endure under the ABST Act. These include
- Failure to apply for registration
- Failure to display and provide the certificate of registration in your place of business
- Failure to file a tax return within the time prescribed
- Failure to pay tax as and when due
Our specially trained agents will guide you through your Antigua Barbuda sales tax registration and follow up on your due taxes helping you take care of your responsibility and avoid penalties. Give us a call today!
Antigua Customs
Whether you are vacationing or relocating to Antigua, you must know about the customs duties and protocols. In Antigua, goods must be declared through the customs department, whether for import or export and there are a variety of Antigua customs charges.
- Import Duty (IDuty)
- Export Duty (EDuty)
- Throughput Levy (TLevy)
- Disposal Levy/Environmental (DLevy)
- National Solid Waste Levy (NSW)
- Dollar Barrel (DBarrel)
- Revenue Recovery Charge (RRC)
- Antigua and Barbuda Sales Tax (ABST)
Clearing non-commercial air and sea cargo
The process for clearing non-commercial air cargo is as follows
- Collect documents from the customs agent. These documents include your waybill, simplified declaration, and invoices. The main document required to clear goods is known as the Single Administrative Document (SAD) or also known as the customs entry form.
- Complete specifics of the declaration section of the simplified declaration.
- Present the goods and documents to Examinations Officer for cargo examination
- Proceed to the Customs Officer for assessment of taxes and duties
- Proceed to cashier with a copy of processed declaration and tax receipts
- Return to Examinations Officer with all documents to authorize the release of your cargo
The process for clearing non-commercial sea cargo is as follows
- Collect documents from the customs agent. These documents include your waybill, simplified declaration, and invoices. The main document required to clear goods is known as the Single Administrative Document (SAD) or also known as the customs entry form.
- Present goods and documents to Customs Officer for cargo examination
- Proceed to cashier with a copy of processed declaration and tax receipts
- Return to Customs Officer with all documents to authorize the release of cargo
For these processes, a broker may be very essential to you. Allow us to match you with a reputable customs broker who is knowledgeable in the Antigua and Barbuda customs clearance procedures so that you can have your goods cleared accurately and to also avoid paying an arm and a leg.
Antigua and Barbuda customs locations
There are a total of 9 customs locations in Antigua and Barbuda:
-Customs Headquarters
-Deep Water harbor
-Air Cargo
-Deep Water Harbor Boarding
-Heritage Quay Boarding
-Heritage Quay Customs office
-Jolly Harbor Boarding
-Nelsons Dockyard Boarding
-Barbuda
Contact information for these locations can be found on the Antigua Customs department website.
Claiming goods in Antigua can be a bit of a headache but don’t worry, Relocate Antigua is here to help you! We provide customs clearance services and will find you a legitimate broker to take care of the processes. We also offer US Postal service services so that you can order your goods online with ease. No matter your need, Relocate Antigua will be there to assist you!
Tax Residency in Antigua
So now you know all there is to know about Antigua Tax rates, and you are probably ready to pack your bags and relocate. But wait, how will you benefit from this remarkable opportunity? Relocate Antigua breaks down the process to become a tax resident of Antigua and Barbuda.
Before you are officially a part of the Antigua tax haven:
- You must spend at least 30 days a year in Antigua and Barbuda
- You must lease or purchase property in the country
- Your annual income must exceed USD 100,000
- You must pay a flat rate of USD 20,000 in tax per year to contribute to Antigua sales tax.
To apply for the program, you must to provide a bank reference, two personal references, birth certificate and passport copies, a police conduct certificate, a medical report, and proof of lease or title of their residential property in Antigua and Barbuda, amongst other documents and certified or notarized translations where needed. Relocate Antigua will take care of all your document’s translations. Just let us know!
Individuals who qualify for the program will be issued a permanent residency certificate, as well as a tax identification number.
Other options for gaining tax residency include becoming a citizen of Antigua and Barbuda. This can be gained via the citizenship by investment program which involves investment in real estate, approved businesses, or the National Development Fund. Investing in Antigua holds many advantages and we are more than happy to guide you through.
Other taxes NOT applicable in Antigua
Inheritance Tax
Capital Gains Tax
Wealth Tax
Worldwide income and assets tax
Conclusion
Paying taxes can be a burden in most countries, but the Antigua and Barbuda tax haven allows for much financial freedom. With no personal income tax and very low other taxes, you will surely be able to thrive in whatever investment you make in this beautiful country.
Let Relocate Antigua be your guide through your relocation and all the aspects of it. Contact us today and stay in touch for more informational articles.
