Antigua & Barbuda Introduces More Stringent Tax Concession Regime

by Amanda Banks, Tax-News.com, London

26 August 2004

The government of Antigua and Barbuda has tightened the rules governing applications for tax concessions and incentives.

According to a report by Caribbean Net News, between 1998 and 2003, the country allowed in the region of EC$170 to EC$200 million (US$63 million and US$74 million) annually on tax concessions – a sum approximately equal to 11% of the country’s GDP.

Recognising that this system was somewhat haphazard, the new measures, which have been introduced with immediate effect, attempt to put in place a more solid framework. As a result, all future applications must be addressed to the Permanent Secretary in the Ministry of Finance and the Economy who will forward them to the Financial Secretary for consideration by the Finance Concessions Committee.

Recommendations will then be made to the Cabinet which will make a final decision on the application. The process is expected to take around four weeks to complete.

All concession given prior to 1 April 2004 will also be subject to re-evaluation.

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