Income tax in Antigua and Barbuda
November 03, 2016
Residents are taxed on their worldwide income. Married individuals are taxed separately.
There are three categories of income for tax assessment purposes: (1) employment income, (2) self-employment income, and (3) other income. Self-employment income includes the following: gains or profits from any trade, business, profession, or vocation; the portion of any pension in excess of ECD60,000 (US$22,222); rents, royalties, and any other income arising from property; any annual gains or profits and foreign-sourced income.
Income is taxed at progressive rates; employment income by withholding while self-employment income and other income by way of assessment. Each taxpayer is entitled to a personal tax-free allowance of ECD36,000 (US$13,333).
INCOME TAX 2015
|TAXABLE INCOME, ECD (US$)||TAX RATE|
|Up to 42,000 (US$15,556)||0%|
|42,000 – 144,000 (US$53,333)||8% on band over US$15,556|
|Over 144,000 (US$53,333)||25% on all income over US$53,333|
|Source: Global Property Guide|
Residents are entitled to the following deductions:
- 25% of annual mortgage interest paid on a loan secured by taxpayer’s residence, maximum of ECD2,000 (US$741)
- 20% of contributions to an approved pension plan during the year, maximum of ECD2,000 (US$741)
- 50% of health insurance premiums paid during the year, maximum of ECD2,000 (US$741)
Rental income is taxed at the standard income tax rates. In computing taxable income, income-generating expenses (repairs, utilities, loan interest on the property, and other expenses) and depreciation expenses (wear and tear charges) are deductible from the gross rent. The maximum depreciation rate for buildings is 2%.
Taxpayers cannot claim depreciation charges if there is already a loss on the gross income less income-generating expenses. Taxpayers also cannot claim depreciation charges for a property if the depreciation charge would exceed the difference between gross rent and total expenses (hence, creating a loss or negative income).
Capital gains are not subject to taxation in Antigua.
If a taxpayer earns capital gains regularly and frequently, the capital gains are considered as income from trade or business and taxed at standard income tax rates.
There are land taxes and property taxes in Antigua and Barbuda.
Land tax is levied at Antigua and Barbuda, depending on the type and size of the property. For non-commercial properties, residential land is taxed at 0.20%.
Property tax is levied on all properties located in Antigua, but not in Barbuda. The taxable value is based on the property’s current construction replacement cost.
Property tax is generally levied at 1%. The applicable tax rates depend on the classification of the property; whether it is a residential property or commercial property. For non-commercial properties, residential buildings are taxed at 0.30%.
Income earned by companies is taxed at the standard corporate tax rate of 25%. Income-generating expenses are deductible when calculating taxable income.