Investment Citizenship in Antigua focusing on Antigua's economic policies: The department responsible for formulating the taxation policy of Antigua and Barbuda is the Ministry of Finance, with the Inland Revenue Department and the Customs Department serving as the primary executive bodies. The main tax categories are as follows:
Corporate Tax
The rate is 40% for joint-stock companies and 25% for non-joint-stock companies. However, local manufacturing enterprises and foreign-invested enterprises engaged in exports may enjoy corporate tax reductions for a period of 10 to 15 years. The duration of the tax reduction is generally determined by the extent of the enterprise's value-added contribution. The magnitude of the tax reduction ranges from 25% to 50%, depending on the percentage of export profits relative to total profits. Upon the expiration of the tax reduction period, the government may grant an additional 5-year extension to enterprises that have performed well in assisting the government in achieving its economic growth targets.
Import Duties
Customs duty rates for imported goods range from 5% to 70%. Food items are approximately 35%, daily necessities are about 20%, heavy machinery is about 5%, and construction materials are about 25%. Nominally, the CIF price is used as the basis for taxation on imported goods; however, in practice, the price is determined by customs appraisers, and commercial invoices are not used as the basis for taxation, which often leads to a high degree of discretion. Additional surtaxes are levied on certain imported goods, such as tobacco, cement, petroleum products, vans, standard trucks, and certain types of timber.
Indirect Taxes
Indirect taxes are an important source of fiscal revenue for the government of Antigua and Barbuda. For export-oriented manufacturing, tourism, and other approved enterprises, indirect taxes may be exempted. Indirect taxes mainly include the following:
(1) Consumption Tax
Consumption tax is levied on goods produced and sold in Antigua and Barbuda, as well as on imported goods. The basic consumption tax rate is 15%, but certain imported goods, such as industrial raw materials, machinery and equipment, and hotel renovation materials and equipment, may be exempt from consumption tax.
(2) Customs Surtax
For goods exempt from import consumption tax, a 3% surtax is levied based on the CIF price.
(3) Customs Service Tax
A customs service tax of 5% of the CIF price is levied on all imported materials.
(4) Insurance Tax
Insurance companies or agents must pay 3% of their insurance premium income (or commissions) as insurance tax, covering property, life, and other insurance, with the exception of motor vehicle insurance.
(5) Stamp Duty
A. Real Estate Stamp Duty
The seller is required to pay a stamp duty of 5% of the value; the buyer is required to pay 2.5%. The value of the real estate is determined by the value assessed by the Chief Valuer appointed by the government.
B. Mortgage Stamp Duty
A mortgage stamp duty of 0.6% is levied upon the registration and discharge of a mortgage.
(6) Undeveloped Land Tax for Non-Antiguan Citizens
Non-Antiguan citizens who fail to develop their land in a timely manner are subject to taxation based on the value of the land according to the following standards:
First year: 5%
Second year: 10%
Third year: 15%
Fourth year and thereafter: 20%
Personal Income Tax
Since 1976, citizens of Antigua and Barbuda have been exempt from personal income tax. Foreigners working in Antigua and Barbuda are required to pay personal income tax, though personnel of foreign-invested and joint-venture enterprises may apply to the Ministry of Finance for tax exemption.
Social Security System of Antigua:
Antigua's social security includes maternity benefits, workers' compensation, accidental death insurance, old-age pensions, disability benefits, and survivor benefits for family members. Every employed person aged 16-60 is required to participate in the insurance.
Social Insurance
The social insurance system in Antigua and Barbuda is relatively comprehensive. Units or individuals who pay social insurance premiums are entitled to social insurance benefits. The benefits provided by social insurance are directly proportional to the premiums paid. All employees aged 16-60, including foreign employees, are eligible for these benefits.
Both employers and employees are required to pay 2.5% each for medical insurance.
Severance Pay
When dismissing an employee, severance pay must be paid according to the length of their service. For weekly-paid employees, one day of severance pay is paid for every month of service; for monthly-paid employees, one month of severance pay is paid for every year of service.
Antigua and Barbuda, with its enchanting scenery and beautiful landscapes, is a famous vacation destination boasting 360 high-quality beaches, clear blue seas, sunny skies, and a rich Caribbean tropical atmosphere. In 2013, Antigua and Barbuda opened its doors to the world with a more open and welcoming attitude.