Taxes in Antigua and Barbuda

The tax authority (Inland Revenue Department) of the finance ministry (Ministry of Finance and Corporate Governance) handles tax registration, assessment, collection and enforcement. Key legal bases include the Income Tax Act, the Antigua and Barbuda Sales Tax Act, the Tax Administration and Procedure Act, and the Property Tax and Valuation Act. Tax payments are made in Eastern Caribbean dollars (EC$ or XCD); the EC dollar is pegged at EC$2.70 per US dollar. Individuals in Antigua and Barbuda do not pay local Personal Income Tax on employment income. This does not mean that all private or business payments are tax-free: property charges, consumption taxes, import duties, withholding taxes and special charges may still apply. Sole traders are subject to the unincorporated business tax (Unincorporated Business Tax), or UBT. The rate is 0% on taxable income up to EC$42,000, 8% from EC$42,001 to EC$186,000, and 25% above that. For partnerships, the thresholds increase according to the number of partners. Companies and other corporate bodies are generally subject to the corporation income tax (Corporation Income Tax), or CIT, at about 25% on taxable net income. This may also include non-profit organisations, trusts, joint ventures and tax-exempt bodies that may nevertheless have to register. Businesses make monthly advance payments; the balance and annual return are generally due three months after the end of the financial year. Losses may offset no more than 50% of taxable income under the IRD form. The sales tax (Antigua and Barbuda Sales Tax), or ABST, is a consumption tax on taxable supplies and certain imports. The standard rate has been 17% since 1 January 2024. Registration is generally required once taxable turnover reaches EC$300,000 within twelve months; additional tests apply at EC$100,000 within four months and with a corresponding turnover forecast. Certain professions must register regardless of turnover. Only registered businesses may charge ABST. Exports, basic food, fuel, water and certain household electricity supplies may be taxed at 0%, while financial and insurance services, medical services, education and certain residential rentals and sales may be exempt. Input-tax recovery may be possible on 0% supplies; it is not available for related input services on exempt supplies. Returns and payments are made monthly within 15 calendar days after the end of the period, while imports are handled through the customs and excise authority (Customs and Excise Division). Property owners pay Property Tax annually based on the taxable value and the applicable assessment class or zone. For high-value residential property from EC$3,000,000, a rate of 0.5% has applied since 2024; other rates depend on valuation lists and property class. Non-citizens may also be subject to undeveloped-land tax for non-citizens (Non-Citizens Undeveloped Land Tax) on undeveloped land. Withholding tax may apply to payments to non-resident individuals or companies, such as interest, royalties, management services or rent. The exact rate depends on the payment and recipient; typical rates under IRD guidance range from 12.5% for certain rental income to 25%. Withholding tax is generally remitted by the 15th of the following month. Tax liability does not begin only when the IRD conducts its first examination. A taxable person or business applies for a tax identification number (Taxpayer Identification Number) within 15 days after becoming liable to tax. Businesses first register with the business registration body (ABIPCO). Invoices, accounting records and other evidence often must be retained for at least seven years. Late returns and payments may trigger surcharges, interest and further measures. Under the Tax Administration and Procedure Act, interest is generally 1% per month or part of a month, in addition to possible penalties. An assessment may be challenged under the IRD procedure within 30 days; the matter may then proceed to the Objections Officer, the Appeal Board and, where applicable, the court. For cross-border matters, the abolition of local Personal Income Tax does not determine whether tax may be due abroad. Income from activities in Antigua and Barbuda, withholding tax, ABST, property taxes and transfer charges may still be relevant. Double-tax treaties or CARICOM rules may provide relief if their conditions are met. Financial institutions report certain account information under CRS and FATCA through the IRD; Country-by-Country Reporting rules also apply to relevant multinational enterprise groups. Other special charges may cover, for example, tourist accommodation, insurance, telecommunications, money transfers, stamps and travel. The applicable rates depend on the relevant special law or current IRD form.