Are you planning to leave the beautiful shores of Antigua and Barbuda and cease your tax residency? Making this change involves a few important steps to ensure you meet all legal requirements. Here's a comprehensive guide to help you through the process.
Review Your Residency Status
First, you need to confirm your current tax residency status. According to the Income Tax Act, Cap 212, a tax resident is someone who spends more than 183 days in Antigua and Barbuda within a tax year or has their permanent place of abode in the country. Ensure you meet the criteria for ceasing residency before proceeding.
Notify the Commissioner of Inland Revenue
You must formally notify the Commissioner of Inland Revenue of your intention to cease tax residency. This notification should be in writing and include your reasons for leaving and the effective date of your departure. Ensure you keep a copy of this notification for your records.
Settle Outstanding Taxes
Before you can cease your tax residency, you must ensure that all your outstanding taxes are settled. This includes income tax, property tax, and any other obligations. Obtain a tax clearance certificate from the Inland Revenue Department to confirm that your tax liabilities have been fully paid.
Close Local Bank Accounts
If you have any local bank accounts, you should close them or update your banking information to reflect your non-resident status. This step is crucial to avoid any future tax implications or misunderstandings.
Relinquish Local Assets
If you own any property or assets in Antigua and Barbuda, you may need to sell or transfer ownership. Consult the relevant legal frameworks to ensure the proper transfer of assets and avoid any future tax obligations.
Update Records with Relevant Authorities
Ensure that you update your status with all relevant authorities, including the Social Security Board and Medical Benefits Scheme, to reflect your non-resident status. This will help avoid any misunderstandings or future obligations.
Keep Documentation
Maintain all documentation related to your cessation of tax residency, including correspondence with the Inland Revenue Department, tax clearance certificates, and records of asset transfers. These documents will be crucial if any issues arise in the future.
Legal References
- Income Tax Act, Cap 212
- Inland Revenue Department Guidelines
- Social Security Act, Cap 408
- Medical Benefits Act, Cap 271
Useful Links
- Antigua and Barbuda Inland Revenue Department
- Antigua and Barbuda Citizenship by Investment Unit
- Government of Antigua and Barbuda
