The corporation tax rate for domestic companies is 25%. Financial institutions licensed under the Banking Act and maintaining residential mortgage rates not exceeding 7% are assessed to corporate income tax at the reduced rate of 22.5%.
income tax at the reduced rate of 22.5%.
A windfall tax at the rate of 10% applies to the net income earned by companies operating in the following specified sectors:
- Commercial banking institutions registered under the Banking Act;
- Insurance companies registered under the Insurance Act, 2007;
- Telecommunication companies; and
- Petroleum distribution company, the West Indies Oil Company (WIOC).
The windfall tax applies from 1 January 2019 to 31 December 2024 (extended from 31 December 2020) and may be extended indefinitely in the future.
Dividends are taxed at a corporate income tax rate of 25%, however, credit is granted to the recipient for tax already paid on such dividends.
There is no separate capital gains tax in Antigua and Barbuda.
The law provides for various tax holidays, incentives or exemption (see Sec. 10.).
Effective from 31 December 2018, offshore companies established under the IBC regime, including International Banking, International Insurance, International Trust, and Offshore Gaming companies, are subject to tax at the standard tax rate of 25% (previously fully exempt from tax).