Verified Facts
Tax rates in Antigua and Barbuda range from 0% to 25% for personal income, with a corporate tax rate of 25% and a value-added tax (VAT) rate of 15%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Antigua and Barbuda has a territorial taxation system, where only income earned within the country is subject to taxation. This means that foreign-sourced income is generally not taxed, unless it is remitted to the country. To be considered a tax resident in Antigua and Barbuda, an individual must have a permanent home in the country and spend at least 183 days in a calendar year. Alternatively, an individual may be considered a tax resident if they have a permanent home in the country and their family is resident in the country, or if they are employed in the country.
The tax system in Antigua and Barbuda is relatively straightforward, with a focus on simplicity and ease of compliance. The country has a number of tax incentives and exemptions in place to encourage foreign investment and economic growth. For example, companies that operate in certain sectors, such as tourism or manufacturing, may be eligible for tax exemptions or reductions. Additionally, the country has a number of double taxation treaties in place to prevent taxation of the same income in multiple countries.
Personal Income Tax
| Income Bracket (XCD) | Tax Rate |
|---|---|
| 0 - 20,000 | 0% |
| 20,001 - 40,000 | 10% |
| 40,001 - 60,000 | 15% |
| 60,001 - 100,000 | 20% |
| 100,001 and above | 25% |
| Personal income tax in Antigua and Barbuda is relatively low, with a top rate of 25%. Taxpayers are entitled to a number of deductions and allowances, including a personal allowance of XCD 20,000, and deductions for mortgage interest, charitable donations, and medical expenses. Tax returns must be filed annually, and taxpayers who fail to file or pay their taxes on time may be subject to penalties and interest. |
Corporate & Business Tax
- The corporate tax rate in Antigua and Barbuda is 25%, which applies to all companies, regardless of size or sector.
- Small businesses may be eligible for a reduced tax rate of 20% if they meet certain criteria, such as having fewer than 10 employees and annual turnover of less than XCD 1 million.
- The country has a number of free zones, which offer tax exemptions and other incentives to companies that operate within them.
- Companies must register with the Inland Revenue Department and obtain a tax identification number in order to operate in the country.
- Companies are required to file annual tax returns and pay their taxes on a quarterly basis.
VAT / Sales Tax
- The standard rate of VAT in Antigua and Barbuda is 15%, which applies to most goods and services.
- A reduced rate of 10% applies to certain essential items, such as food and medicine.
- Some goods and services, such as financial services and education, are exempt from VAT.
- Tourists may be eligible for a refund of VAT paid on certain purchases, such as hotel accommodations and souvenirs.
For Expats & Foreign Workers
- Tax residency rules in Antigua and Barbuda are based on the number of days spent in the country, with individuals who spend 183 days or more in a calendar year considered tax residents.
- The country has double taxation treaties with 23 countries, which can help to prevent taxation of the same income in multiple countries.
- Foreign workers may be eligible for a tax exemption on their foreign-sourced income, provided they meet certain criteria.
- Expats and foreign workers are required to register with the Inland Revenue Department and obtain a tax identification number in order to work in the country.
- Social security contributions are mandatory for all workers, including expats and foreign workers.
- Remittances of foreign-sourced income may be subject to taxation, depending on the individual's tax residency status.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to taxation in Antigua and Barbuda, with a top rate of 25%.
- Cryptocurrency is considered a taxable asset, and gains from the sale of cryptocurrency may be subject to capital gains tax.
- Income from rental properties is subject to taxation, with a top rate of 25%.
- Investors may be eligible for a tax exemption on their investment income, provided they meet certain criteria, such as investing in a qualified investment fund.