Antigua and Barbuda

In Antigua and Barbuda, employers have several tax obligations, including social security contributions, corporate income tax, and withholding tax.

Social Security Contributions

Employers are responsible for contributing 8% of their employees' gross monthly salary to the Social Security scheme. Employees also contribute 6% of their insurable earnings. These contributions fund various social benefits. Payments are due within 14 days after the end of the month. Late payments incur a 10% penalty. All new employers must register with the Antigua & Barbuda Social Security Board (ABSSB) within seven days of hiring their first employee.

Corporate Income Tax

Companies incorporated in Antigua and Barbuda are subject to a 25% corporate income tax on their worldwide income. Instalment payments are due monthly, starting one month minus a day from the corporation's taxation year start date. The remaining balance is due three months after the end of the taxation year. Late filing penalties are $500.00 or 5% of the tax due, whichever is greater. Late payment penalties are 20% of the unpaid tax, plus 1% per month the balance remains outstanding.

Withholding Tax

A 25% withholding tax applies to payments made to non-residents for dividends, interest, royalties, and technical services. This tax must be withheld by the payer and remitted to the Inland Revenue Department within 15 days of the payment.

Value Added Tax (VAT)

Businesses providing goods and services in Antigua and Barbuda are subject to a 15% VAT.

Other Employer Obligations

• Minimum Wage: EC$8.20/hour.
• Standard Workday/Week: 8 hours/day, 48 hours/week, maximum 12 hours/day or 72 hours/week.
• Overtime: At least 150% of regular wage.
• Rest Day: 24 consecutive hours every 7 days.
• Medical Benefits Scheme: Employers must contribute to this scheme for employees under 60.
• Public Holidays: 10 days per year. Employees working on holidays receive 150% pay.
• Maternity Leave: 6-13 weeks fully paid at 60% of the employee's wages in the last year.
• Paternity Leave: 4 paid days.
• Sick Leave: Up to 12 days per year. A physician's certificate is required after three consecutive sick days.

Please note that this information is current as of February 5, 2025, and might be subject to change. It's essential to consult with a tax advisor for the most up-to-date regulations.

In Antigua and Barbuda, employee tax deductions primarily consist of social security contributions and a corporate income tax for businesses. Personal income tax was eliminated.

Social Security Contributions

• Employee Contribution: 6% of insurable earnings.
• Employer Contribution: 8% of insurable earnings.
• Total Contribution: 14% of insurable earnings.
• Insurable Earnings: All earnings including basic salary, overtime, vacation pay, bonuses, commissions, housing allowances, and other incentives. There's a minimum threshold of the legal monthly minimum wage, and a maximum cap of EC$6,500 per month.

Corporate Income Tax

• Standard Rate: 25% of worldwide income for companies incorporated in Antigua and Barbuda.
• Tax Incentives: Certain sectors like international business companies (IBCs) engaged in offshore activities, and industries such as tourism and manufacturing may qualify for incentives and exemptions. It's essential to verify eligibility based on specific business activity and structure.

Other Deductions and Considerations

While personal income tax is not applicable, employers are responsible for deducting and remitting social security contributions to the Antigua and Barbuda Social Security Board. Employers must register with the board within seven days of hiring their first employee. It's crucial for employers to maintain accurate payroll records, issue payslips detailing all deductions, and comply with all reporting deadlines. Employee eligibility depends on citizenship status, relevant documentation, and work permits for non-citizens. Tax Identification Numbers are necessary for tracking and reporting. While not a deduction, understanding the former personal income tax allowances, such as EC$3,000 monthly/EC$36,000 annually, can provide context for overall compensation structuring.

It's important to note that this information is current as of today, February 5, 2025, and may be subject to changes in the future. Consulting with a tax professional is always recommended for personalized advice.

In Antigua and Barbuda, the Antigua and Barbuda Sales Tax (ABST) is a value-added tax (VAT) levied on the consumption of goods and services.

ABST Rates and Application

• Standard Rate: As of January 1, 2024, the standard ABST rate is 17%. Previously, it was 15%.
• Reduced Rate: A reduced rate of 14% applies to hotel accommodations and similar holiday services. Information about a previously applicable 12.5% reduced rate is now outdated as of January 1, 2024.
• Zero-Rated: Several goods and services are zero-rated, meaning ABST is charged at 0%. This includes basic food items, new residential properties, domestic electricity, exports, fuel, and water.
• Exempt: Certain supplies are entirely exempt from ABST, such as financial services, medical services, prescription drugs, educational services and domestic transportation. Long-term accommodation may also be exempt.

Registration

Businesses with an annual taxable activity level exceeding EC$300,000 are generally required to register for ABST. Government entities engaged in commercial activities, promoters of public entertainment, and certain professional service providers are also required to register, irrespective of their turnover. Those making only exempt supplies are not required to register.

Filing and Payment

Businesses registered for ABST must file returns and remit the collected tax. The filing frequency is typically quarterly. However, the deadline for remitting the tax has recently changed. As of February 2024, registered businesses are required to remit collected ABST within 15 days of the end of the tax period, reduced from the previous 30-day deadline.

Revenue Recovery Charge (RRC)

In addition to ABST, a Revenue Recovery Charge (RRC) of 10% is applied to the CIF value of most imported and domestically produced goods. Some exemptions apply to the RRC. Further details on specific exemptions for the RRC were unavailable.

Other Taxes

Antigua and Barbuda also levies other taxes such as Customs duties, an environmental levy on imports, and Stamp Tax. Details on the rates and application of these other taxes were not found in the provided sources. Information about a "Turnover Tax" appears outdated.

This information is current as of today, February 5, 2025, and may be subject to change. It is recommended to consult with a tax advisor or the Inland Revenue Department of Antigua and Barbuda for the latest information.

Antigua and Barbuda offers a range of tax incentives primarily focused on attracting investment and stimulating economic growth.

Personal Income Tax

Antigua and Barbuda abolished personal income tax in 2016. This means no tax is levied on income earned within the country. There are no capital gains, inheritance, or wealth taxes either.

Tax Residency

Individuals can obtain tax residency in Antigua and Barbuda by residing in the country for at least 30 days per year and maintaining a residence there. A flat tax of $20,000 per year is payable for the tax residency program. Benefits include exemption from income tax, capital gains tax, inheritance tax, and wealth tax on worldwide income and assets. Alternatively, tax residency can also be established via physical presence (183 days or more in a calendar year) or permanent home test (maintaining a permanent home combined with demonstrating a genuine economic connection to Antigua and Barbuda).

Investment Incentives

Several investment incentives are available to attract foreign direct investment:

• Tourism Sector: Incentives like import duty waivers, loss-carry forward provisions, property tax reductions, and stamp duty reductions are available. Specific details can be found under the 'Tourism and Business Special Incentives Act 2013'.
• Export-Oriented Activities: Tax incentives include exemptions or reduced rates on corporate income tax, import duties, and Value Added Tax (VAT) for inputs used in producing export goods or services.
• Manufacturing: The Manufacturer's Incentive and Small Business Development Act provides exemptions from import duties, Revenue Recovery Charge (RRC), and the Antigua and Barbuda Sales Tax (ABST) on raw materials, packaging, tools, equipment, and machinery for eligible manufacturers.
• Free Trade Zones: Businesses operating within designated free trade zones can benefit from corporate income tax exemptions or reductions, import duty exemptions or reductions, and VAT exemptions on inputs and equipment used in manufacturing and export activities.
• General Investment Incentives: Depending on the capital invested (above $1 million XCD), further incentives include import duty waivers, loss-carry forward provisions, exemption/reduction of withholding tax, property tax reduction, stamp duty reduction and exemption from environmental levy.

Double Taxation Agreements

Antigua and Barbuda holds double taxation treaties with several countries, including the US, Canada, and the UK, to prevent double taxation of income. These treaties outline rules for determining residency, allocating taxing rights, and offering relief from double taxation.

Citizenship by Investment Program

The Citizenship by Investment Program (CIP) provides an alternative pathway to residency and offers the same tax benefits as standard residency. This program involves making a significant contribution to the country's National Development Fund, investing in approved real estate projects, or establishing a business.

It's important to consult with a tax advisor for personalized guidance regarding Antigua and Barbuda's tax incentives. Tax laws and regulations can be complex and are subject to change. This information is current as of February 5, 2025.