Antigua & Barbuda Corporate Tax Guide: CIT 25% Standard Rate 2026
Antigua and Barbuda's Corporate Income Tax (CIT) rate is 25% standard. There is no reduced rate for small businesses. However, companies in the tourism, technology, and strategic sectors may qualify for incentives under the Citizenship by Investment Program (CIP) and other investment promotion laws. The territorial system means only Antigua-source income is taxable. Here is how corporate tax works in 2026.
Corporate Income Tax in Antigua and Barbuda is governed by the Income Tax Act and administered by the Inland Revenue Department (IRD). The standard CIT rate of 25% applies to all resident companies on their Antigua-source income. Non-resident companies with a permanent establishment (PE) in Antigua are taxed on PE-attributable income at the same rate. Companies incorporated under the International Business Corporations (IBC) Act may qualify for reduced rates or exemptions. The tax year is the calendar year. Companies must file annual CIT returns by March 31 of the following year. Filing and compliance guide →
Real-world example: An Antiguan-based hotel company with annual turnover of XCD 5 million and taxable profit of XCD 1.5 million pays CIT at 25% = XCD 375,000. A qualifying CIP-approved business may benefit from reduced rates or tax holidays. Compare to regional peers: Barbados 5.5-30% (progressive), Jamaica 25%, Trinidad and Tobago 30%, Bahamas 0% (no CIT). IT sector incentives →
Corporate Tax Rate Structure
- 25% (standard): All resident companies on Antigua-source income
- Territorial system: Foreign-source income is not subject to CIT in Antigua
- Reduced rates: CIP-approved businesses and qualifying strategic investments may benefit from reduced rates or tax holidays
- IBC regime: International Business Corporations may qualify for preferential rates
Taxable Income and Deductions
Corporate taxable income is calculated as accounting profit adjusted for tax purposes. Key rules include:
- Depreciation: Standard rates — buildings 5%, machinery 15%, vehicles 20%, computers 33.3%
- Interest deductibility: Thin capitalization rules may limit interest deductions
- Loss carryforward: Tax losses can be carried forward for 6 years
- Dividend deduction: Dividends received from other Antiguan companies are generally exempt
- Capital gains: No separate capital gains tax; gains on capital assets are generally not taxable
Withholding Taxes on Outbound Payments
Antigua and Barbuda imposes 0% withholding tax on outbound payments to non-residents:
- Dividends: 0% WHT (both residents and non-residents)
- Interest: 0% WHT (both residents and non-residents)
- Royalties: 0% WHT (both residents and non-residents)
Tax Incentives and Exemptions
Antigua and Barbuda offers various incentives to attract investment:
- Citizenship by Investment Program (CIP): Qualifying investments starting at USD 100K may provide CIT incentives
- Tourism sector: Hotels and tourism developments may qualify for tax holidays and duty exemptions
- Strategic investments: Large-scale investments may negotiate tax incentives with the government
- No exchange controls: Free movement of capital in and out of Antigua
Incentives typically require prior approval and minimum investment thresholds. IT sector-specific incentives →
Who needs to register for CIT in Antigua?
All legal entities (companies, partnerships, branches of foreign entities) carrying on business in Antigua must register for CIT with the IRD. Registration is required before starting business operations.
What is the filing deadline for corporate tax?
Annual CIT returns must be filed by March 31 of the following year. Tax is paid in quarterly installments during the year based on the previous year's estimated liability, with final settlement upon filing.
Are there any regional or municipal corporate taxes?
No. Antigua and Barbuda has a unitary tax system with no regional or municipal corporate taxes. The 25% CIT is the only corporate-level tax on Antigua-source income.