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8.2.2. Withholding Taxes

There is no withholding tax on payments to resident companies.

Effective from 31 December 2018, the tax exemptions for IBC’s have been withdrawn. Previously, there were no withholding taxes on payments made by offshore IBC companies to non-residents.

Dividend

Tax is withheld at 25% on dividends paid by Antigua and Barbuda resident entities to non-residents.      

There is no withholding tax on dividends (except dividend paid on preferred shares which are taxed at 15%) paid by Antigua and Barbuda resident entities to resident entities of CARICOM member states.

Interest

Tax is withheld at 25% on interest paid by Antigua and Barbuda resident entities to non-residents. In case of interest paid on loans provided by non-residents at arm’s length for specific purposes, tax is withheld at 10% subject to prior approval by the Commissioner of IRD.

Tax is withheld at 15% on interest paid by Antigua and Barbuda resident entities to resident entities of CARICOM member states.

Royalty Copyright

Tax is withheld at the rate of 25% on royalties paid to non-residents. Tax is withheld at 15% on royalties paid to resident entities of CARICOM member states.    

Royalty Patent

Tax is withheld at the rate of 25% on royalties paid to non-residents. Tax is withheld at 15% on royalties paid to resident entities of CARICOM member states.

Royalty Trademark

Tax is withheld at the rate of 25% on royalties paid to non-residents. Tax is withheld at 15% on royalties paid to resident entities of CARICOM member states.

Service Management

Tax is withheld at the rate of 25% on service management fees paid to non-residents. Tax is withheld at 15% on service management fees paid to resident entities of CARICOM member states.

Service Technical

Tax is withheld at the rate of 25% on service technical fees paid to non-residents. Tax is withheld at 15% on service technical fees paid to resident entities of CARICOM member states.

Others

Any other income like rental income earned by non-residents is subject to withholding tax at 25%. Tax is withheld at 15% on rental income received by resident entities of CARICOM member states.

Also, withholding tax applies at the rate of 25% on head office charges for expenses apportioned by a head office to a local branch.

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains 0.0 %
Dividends 25.0 %
Interest 25.0 %
Royalty Copyright 25.0 %
Royalty Patent 25.0 %
Royalty Trademark 25.0 %
Sales 0.0 %
Service Management 25.0 %
Service Technical 25.0 %

* Rates are current as of 02 October 2022