Corporate Tax in Antigua and Barbuda | Rates & Rules

Introduction to Corporate Tax in Antigua and BarbudaCopy link to section

Antigua and Barbuda levies a corporate income tax of 25% on company profits, administered by the Inland Revenue Department. This is a working tax, actively assessed and enforced, not a nominal charge. The country pairs an active corporate tax with no personal income tax, no capital gains tax, and a set of sector concessions that lower the rate for specific industries.

This article explains how corporate tax in Antigua and Barbuda (corporation tax) is charged, who falls within its reach, how profits are computed, and what filing and payment duties attach to a company. It is written for foreign owners, investors, and their advisers weighing incorporation in the jurisdiction or maintaining a company already established there.

Legal Basis and Administration of Corporate TaxCopy link to section

The charge on company profits stems from the Income Tax Act, while the rules for assessment, collection, and appeals sit in the Tax Administration and Procedures Act No. 12 of 2018. The Inland Revenue Department (IRD), operating under the Ministry of Finance, administers both.

Every company must register with the IRD, file its returns, and remit payment for each tax it falls under. There is no separation between a self-assessment filing body and a collection body; the IRD performs both functions.

Taxable income, referred to as chargeable income, is reached by deducting from gross income all expenses wholly and exclusively incurred during the year to produce that income. The tax year ordinarily runs from 1 January to 31 December, though a company may seek IRD approval for a different accounting period.

On 18 June 2025, the jurisdiction signed the Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent BEPS (the MLI). That instrument is not yet in force locally, so it does not yet alter how existing treaties are applied.

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Corporate Tax Rates: Standard and Reduced Sector RatesCopy link to section

The headline rate is 25% on chargeable profits. Several sectors are taxed at lower rates, reflecting a policy of differentiated treatment by industry.

Offshore banks licensed in the country pay tax on profits and gains under a tiered structure that applies above XCD 20 million, with the annual liability due by 31 March.

Two structural features matter for any foreign owner modelling returns. Capital gains are not taxed, and there is no payroll tax. No corporate surtax or alternative minimum tax operates alongside the standard rate.

Which Companies Are Liable: Resident and Non-Resident TaxationCopy link to section

A company counts as resident if it is incorporated locally, registered as an external company, or centrally managed and controlled within the territory. A resident company is taxed on its worldwide income.

A non-resident firm is taxed only on income derived or sourced within the jurisdiction, charged at the flat rate. The basis of charge therefore turns on where the income arises rather than where the company is formally domiciled.

Branches are treated as separate companies. A resident branch of a foreign business is taxed on the same basis and at the same rate as a locally registered corporation.

Cross-border payments to non-residents carry withholding tax, generally at 25%. The categories below summarise the main charges.

• Dividends, interest, and royalties sourced locally and paid to a non-resident company: 25% withholding tax.
• Recharges of expenses from a foreign head office to its local branch: 25% withholding tax.
• Arm's-length loans by a non-resident promoting industrial, commercial, scientific, housing, or other development: 10% withholding tax.

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The Tax Base: How Company Profits Are ComputedCopy link to section

Net profit per the financial statements is the starting point. From there, the figure is adjusted by adding back non-deductible expenses, removing non-taxable income, and accounting for prior period items to arrive at chargeable income.

Royalties received by a corporation are taxable as business or property income. Where those royalties come from CARICOM sources, they are normally exempt from Commonwealth taxes.

Inventory is generally stated at the lower of cost or net realisable value. FIFO and average cost are accepted for both book and tax purposes; LIFO is not permitted, and the Commissioner will normally accept any method that conforms to standard practice in the trade.

Two limits constrain the base. Goodwill and trademarks are not treated as depreciating assets, so no amortisation is allowed on them, and group taxation is not available, meaning each entity is assessed on its own result.

Deductions, Allowances, and Loss ReliefCopy link to section

The general rule on deductibility is the wholly-and-exclusively test: an expense must be incurred to produce the income being taxed. Several specific points refine how that applies in practice.

• Start-up costs, including incorporation expenses, have no dedicated relief, but they may qualify for a five-year straight-line write-off.
• General provisions for bad debts are not deductible; only a specific debt, proven to the IRD as having arisen during the year, may be claimed.
• Trading losses can generally be carried forward to offset profits in later years.

The Income Tax Act governs the carry-forward period, and the exact maximum is not set out in public guidance. Depreciation follows accepted accounting practice for the relevant trade rather than a published statutory schedule. Confirm both points with a local adviser before relying on them in a forecast.

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Filing, Payment, and Self-Assessment ObligationsCopy link to section

Corporate tax operates on a fiscal-year self-assessment basis. A company must file its return within three months of the end of its fiscal year, which means an annual due date of 31 March for a calendar-year filer.

Payment is spread across the year rather than settled in a single sum. Tax is paid in monthly instalments based on the prior year's assessed liability, with each instalment due on the last day of the relevant month, and the balance settled within three months of the year end. Final payment falls due by 30 April. Quarterly remittances apply on 15 April, 15 July, 15 October, and 15 January.

Registration is the first compliance step. After incorporation, a company registers with the IRD to obtain a Tax Identification Number, which covers corporate tax and brings VAT into scope once the turnover threshold is met.

Penalties and Interest for Late Filing and PaymentCopy link to section

Late filing and late payment carry separate charges, and they can stack. The table below sets out the principal amounts.

Collection powers are wide. The Commissioner of Inland Revenue may enforce collection before an objection or appeal is decided, and also holds discretion to stay collection of all or part of an assessed amount. The statute of limitations for assessments is governed by the Tax Administration and Procedures Act rather than published as a fixed figure.

Corporate Tax Incentives and Concessions for BusinessesCopy link to section

The jurisdiction supports targeted investment through a concession regime. The Tourism and Business (Special Incentives) Act, passed in the Senate on 30 December 2013, allows qualifying investors committing above $1 million to access a package of reliefs.

Those reliefs may include import duty waivers, loss carry-forward, exemption or reduction of withholding tax, property tax reduction, and reduced stamp duty on land transfers and non-citizen licences. Concessions are aimed in particular at tourism, manufacturing, and international business services.

International Business Companies sit on a separate footing. An IBC receives an income tax holiday for 50 years and is exempt from customs duties, with the exemption extending to corporate tax and to income from real estate, securities, assets, dividends, and interest.

The treaty position shapes how cross-border income is taxed. The country has 12 Double Tax Treaties and 17 Tax Information Exchange Agreements, the latter covering partners such as the United Kingdom, the United States, France, Germany, and several Nordic states.

Treatment of Foreign-Owned Companies and International Business CorporationsCopy link to section

For a foreign owner, the central distinction is between an ordinary company taxed at 25% and an IBC. An IBC pays 0% corporate tax on activities carried on outside the territory, which is the main draw of the form.

Practical features of the IBC make it accessible to non-residents:

• 100% foreign share ownership is permitted.
• No minimum authorised capital applies, except for licensed activities.
• A single shareholder may also serve as sole director.
• Incorporation is typically completed within one business day.
• Currency control requirements do not apply.

Companies incorporated locally and foreign companies operating through a permanent establishment are taxed at the standard 25% rate, while the regime applies territorial treatment to certain income. The concept of a permanent establishment is drawn from the country's tax treaties and follows the OECD Model Convention; it is not defined in the Income Tax Act itself.

Information exchange commitments are in place and operating. The jurisdiction signed the CRS Multilateral Competent Authority Agreement on 29 October 2015, with automatic exchange beginning in September 2018, and signed the Country-by-Country Reports MCAA on 28 January 2024.

Outlook: The OECD Global Minimum Tax and Future ReformsCopy link to section

The OECD's Pillar Two sets a global minimum effective rate of 15% for large multinational groups, those with consolidated revenue above €750 million. Where incentives push a group's effective rate below that floor, top-up tax can arise under the GloBE Rules.

The domestic standard rate of 25% sits above the 15% threshold, so ordinary resident companies are not prima facie exposed to top-up tax. The position is different for the IBC regime: a 50-year holiday at 0% falls well below the floor, which can expose IBC parent structures to top-up tax through the Income Inclusion Rule in jurisdictions that have implemented Pillar Two.

Two reputational developments are relevant to a foreign investor. The Council of the European Union removed the jurisdiction's tax-haven status in October 2024, and an earlier removal from the EU greylist followed a positive Global Forum rating on information exchange on request.

No public data confirms enactment of domestic Pillar Two or QDMTT legislation. The country's small-economy status may bring it within a transitional safe harbour, so groups affected by the global minimum tax should monitor the OECD Inclusive Framework status list and reassess incentive-driven structures accordingly.

ConclusionCopy link to section

For a foreign owner weighing incorporation or continued compliance here, the practical center of gravity is not the standard rate or the available deductions but the specific treatment reserved for foreign-owned companies and international business corporations, since that framework determines what the structure actually costs and what obligations it carries day to day. The announced direction of reform, particularly pressure from the global minimum tax, adds a layer of timing risk that makes the current incentive and concession picture worth examining sooner rather than later.

How Expanship Can Help Your Business in Antigua and BarbudaCopy link to section

Expanship supports foreign owners with the full corporate tax cycle in Antigua and Barbuda, from IRD registration and obtaining a Tax Identification Number through to return preparation, instalment scheduling, and withholding tax remittance. The same team handles the wider needs of a foreign-owned entity, so company formation and ongoing administration run through a single point of contact.

• Company incorporation, including IBC and domestic structures
• Registered agent and registered office services
• Tax registration and corporate tax filing
• Ongoing compliance and deadline management
• Accounting and bookkeeping
• Banking introductions for the new entity

To discuss your structure and obligations, contact Expanship Antigua and Barbuda.

Frequently Asked QuestionsCopy link to section