Business Tax
There are two categories of local business tax: 40% for corporations and 25% for non-corporations. However, local manufacturing industries and foreign-invested enterprises that are export-oriented can enjoy a reduction in business tax for 10-15 years. The duration of the tax reduction is generally determined based on the company's growth rate. The reduction amount is based on the percentage of export profits relative to total profits, ranging from 25% to 50%. After the tax reduction period expires, the government may extend the tax reduction period by an additional 5 years for those companies that have performed well in assisting the government in achieving economic growth targets.
Import Duties
The customs duty rates for imported goods range from 5% to 70%. Food items are approximately 35%, daily necessities are about 20%, large machinery is around 5%, and building materials are about 25%. Nominally, imported goods are taxed based on the CIF price, but in practice, the price of imported goods is determined by the customs appraiser's valuation, and commercial invoices are not used as the basis for taxation, leading to significant arbitrariness. Additional taxes are levied on certain imported goods, such as tobacco, cement, petroleum products, vans, ordinary trucks, and some types of wood.
Indirect Taxes
Indirect taxes are an important source of fiscal revenue for the Antigua and Barbuda government. For export-oriented manufacturing, tourism, and other recognized enterprises, indirect taxes may be exempted. Indirect taxes mainly include the following:
(1) Consumption Tax
Goods produced and sold in Antigua and Barbuda, as well as imported goods, are subject to consumption tax. The basic tax rate for consumption tax is 15%, but some imported goods, such as raw materials for industry, machinery, hotel renovation materials, and equipment, may be exempt from consumption tax.
(2) Customs Surcharge
A surcharge of 3% is levied on goods exempt from import consumption tax, based on the CIF price.
(3) Customs Service Tax
All imported goods are subject to a customs service tax of 5% based on the CIF price.
(4) Insurance Tax
Insurance companies or agents must pay 3% of insurance premium income (or commission) as insurance tax, including property and life insurance, but excluding automobile insurance.
(5) Stamp Duty
A. Real Estate Stamp Duty
The seller must pay a stamp duty of 5% of the value; the buyer must pay 2.5%. The value of real estate is based on the valuation by the chief appraiser designated by the government.
B. Mortgage Stamp Duty
A mortgage stamp duty of 0.6% is levied upon registration and cancellation of a mortgage.
(6) Tax on Undeveloped Land for Non-Citizens
Non-citizens of Antigua and Barbuda who do not develop their owned land in a timely manner are taxed based on the value of the land according to the following standards:
First Year 5%
Second Year 10%
Third Year 15%
Fourth Year and Beyond 20%
Personal Income Tax
Since 1976, Antigua and Barbuda citizens are exempt from personal income tax. Foreigners working in Antigua and Barbuda are required to pay personal income tax, and personnel from foreign and joint venture enterprises may apply to the Ministry of Finance for tax exemption.