Each individual has a personal allowance of EC$36,000 per annum. Individuals who have their permanent residence in the country or who are present for at least 183 days a year will qualify as residents of Antigua and Barbuda and will be subject to tax on their worldwide income. Individuals who are in the country temporarily will only be taxed on income arising in or derived from Antigua and Barbuda. However, proposed amendments to Part 111, Section 5 of the Income Tax Act will change taxation on worldwide income to taxation limited to locally sourced income.
The business and corporate tax rate is 25% of net profits, although attractive concessions are available to qualifying companies such as a tax holiday on profits up to a 20 year period and import/export customs duty waiver.
A sales tax similar to VAT is applicable at a standard rate of 15% which is levied on local consumption. Some exemptions exist and transitional rates also apply to certain areas, i.e. 10.5% or 12.5% to hotel and holiday accommodation. Antigua and Barbuda Sales Tax (ABST) was introduced in 2007 and replaced a number of other taxes. The current threshold for business registration under ABST is an annual turnover of EC$300,000 (although other variables also apply, so this is an approximate figure).
Property tax is levied on all properties in Antigua but not in Barbuda. The taxable value is based upon the property’s current market value construction replacement cost with the applicable tax rate dependent upon the classification of the property (residential or commercial).