Employers in Antigua and Barbuda have several tax responsibilities. One of these is contributing to the Social Security Board. The contribution rate for employers is 8% of an employee's insurable earnings. The insurable earnings have a ceiling of $78,000 annually or $6,500 monthly. All Social Security contributions must be paid within 14 days after the end of the month for which they are due. Late payment may result in penalties.

Corporate Income Tax

The standard corporate income tax rate in Antigua and Barbuda is 25%. Companies are required to file their corporate income tax returns and make payments to the Inland Revenue Department.

Other Employer Tax Considerations

Employers who own property in Antigua and Barbuda may be subject to property tax. In certain cases, employers may have responsibilities with regard to Antigua and Barbuda Sales Tax (ABST) collection on the sale of goods and services. However, there's no direct payroll tax related to ABST.

Staying Informed

Employers are strongly encouraged to stay up-to-date on tax laws and regulations, as they are subject to change. Consulting with a tax professional or accountant can ensure compliance and avoid any unexpected penalties.

In Antigua and Barbuda, employees have 6% of their insurable earnings deducted for Social Security contributions. There's a ceiling of $78,000 annually ($6,500 monthly) on the maximum amount of earnings upon which Social Security contributions are calculated.

Social Security Contributions

• Deduction Rate: Employees have 6% of their insurable earnings deducted.
• Insurable Earnings Ceiling: There's a ceiling of $78,000 annually ($6,500 monthly) on the maximum amount of earnings upon which contributions are calculated.

Antigua and Barbuda has a progressive personal income tax system. The current tax brackets are as follows:

• 0% on the first $42,000 of income
• 8% on income between $42,001 and $144,000
• 25% on income over $144,000

Personal Income Tax

• Tax Rates:
  • 0% on the first $42,000 of income
  • 8% on income between $42,001 and $144,000
  • 25% on income over $144,000

Antigua and Barbuda offers a personal allowance, which is a portion of income that is exempt from income tax. Employees are advised to consult tax resources provided by the government of Antigua and Barbuda, or speak to a tax advisor, for a comprehensive understanding of their individual income tax liabilities.

Antigua and Barbuda doesn't have a traditional VAT system. Instead, they have the Antigua and Barbuda Sales Tax (ABST), which functions similarly to VAT.

Standard ABST Rate

The standard ABST rate is currently 15%. However, as of January 1st, 2024, this rate will increase to 17%.

ABST on Services

Most services provided in Antigua and Barbuda are subject to ABST. This includes services such as professional services (accounting, legal, consulting), telecommunications services, hospitality services (hotels, restaurants), transportation services, and entertainment services. There are some exceptions and rate variations, like the tourism sector which currently has concessions that will be repealed when ABST changes to 17%.

ABST Registration and Filing

Businesses providing taxable services with an annual turnover exceeding a specific threshold must register for ABST with the Inland Revenue Department. Registered businesses are responsible for charging ABST on their sales of services, filing ABST returns with the Inland Revenue Department, and remitting the collected ABST to the government.

ABST and Online Services

ABST will also be extended to apply to online streaming services as of January 1st, 2024. This means that providers of these services will likely need to register and charge ABST to customers in Antigua and Barbuda even if they have no physical presence on the islands.

New businesses in approved sectors can benefit from varying periods of exemption from corporate income tax, known as an income tax holiday. The length of the holiday depends on several factors, including investment amount, local value-added, and job creation. Companies may also be eligible for import duty exemptions on raw materials, equipment, and other essential goods to support business operations. Other possible concessions include reductions in stamp duty and property taxes.

Sector-Specific Incentives

Investment incentives for tourism development projects can include extended tax holidays and more significant concessions on import duties. Businesses involved in manufacturing for export may qualify for reduced corporate income tax rates and other export-related incentives. International Business Companies (IBCs) registered in Antigua and Barbuda were traditionally exempt from income tax, however, this has changed. IBCs incorporated after December 31st, 2018, are now subject to the standard corporate income tax rate of 25%.

Fiscal Incentives Act

Many of the tax incentives available to businesses in Antigua and Barbuda are outlined in the Fiscal Incentives Act (Cap. 172).

Small Business Development Act

The Small Business Development Act of 2007 provides incentives specifically for small businesses. Eligible businesses may qualify for corporate income tax concessions, import duty reductions, withholding tax exemptions, and property tax reductions.