Antigua Corporate tax
When it comes to business tax is always a major concern. Taxation must be calculated within the company starting capital and a business should understand what assets are taxable and what type of tax they are subject to.
Some taxes, like corporate tax, is paid on annual basis, while other taxes such as stamp duty (or customs), transfer tax, and others are annually but per activity, which makes forecasting their amount more complex.
Thankfully, Antigua and Barbuda do provide companies with a favorable tax regime. Corporate tax on gross income is based on an annual flat tax rate of 25%, while branches of companies are also liable for corporate tax under the country’s act, paying a similar tax rate of 25%.
Registered companies do not have to pay any capital gains tax, as the government does not impose any on businesses that obtain capital gains in Antigua and Barbuda. This is one of the many tax incentives a company can enjoy in the nation
Dividends are included in taxable income, while losses may be carried forward up to six years and may reduce taxable income to 50%.
A company must register for value-added tax of course, which is basically Antigua and Barbuda sales tax (ABST) or VAT. This tax is based on a rate of 15%, but some companies can apply for exemption, while hotels can enjoy a reduced rate of 12.5%. Annual VAT tax filing must be done through the inland revenue department.
The minimum taxable value of supplies or services a company must achieve to be taxable under sales tax in the country is 300,000 XCD. Companies that earn less than the minimum taxable value cannot be registered for value-added tax. Sales tax must be filed by companies within 30 days after the end of the tax period.
Companies must also take into consideration customs duties of international goods and act accordingly.
Stamp duties are another important tax in Antigua to consider, as stamp tax on the selling and buying of shares is set at a flat tax rate of 5% for the seller and 2.5% for the buyer on the higher market value of the shares or their book value.
Unincorporated businesses tax is levied on a sliding scale with rates ranging from 0% to 25% of gross income, whether it is local or worldwide income derived from other countries. Non-residents are subject to unincorporated business taxation on income derived from within Antigua and Barbuda only. Unincorporated business tax is due quarterly instead of annually.
There are plenty of incentives for commercial corporations to take advantage of, but they depend on the type of commercial activity they pursue and what type of corporation they are registered as.