Antigua & Barbuda Seeks To Simplify Income Tax

by Amanda Banks, Tax-News.com, London

15 April 2005

It has emerged that the government of Antigua and Barbuda is seeking to further simplify the procedure involved in the withholding of personal income tax from employees.

At a meeting between Minister of Finance and the Economy, Dr. Errol Cort and several stakeholders earlier this week, it was agreed that for the next nine months, employment income for personal income tax purposes will be consistent with the amounts included in gross earnings for the purposes of social security deductions.

Consequently, all allowances which are included as part of employment income for the purpose of calculating Social Security deductions will likewise be used for the purpose of calculating income tax deductions.

However, unlike Social Security deductions, there will be no cap applicable to employment income for income tax purposes.

The Finance Minister explained that over the next few months, a technical team consisting of members of the Ministry of Finance and the Economy, the Employers' Federation, the Chamber of Commerce and Industry and the Trade Union Congress will undertake a comprehensive review of the precise allowances that should be subject to income tax and those that should be exempt.

The move has been welcomed by private sector employers, according to the government.

Provisions are also being made at the Social Security Headquarters, whereby employers will be able to pay both their social security and income tax deductions at one location to the Inland Revenue Department.

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