Tax Residency Criteria in Antigua and Barbuda
Antigua and Barbuda's tax residency criteria are outlined in the Income Tax Act, 2016. According to the Act, an individual is considered a resident for tax purposes if they meet any of the following conditions:
- Physical presence in Antigua and Barbuda for more than 183 days in a calendar year.
- Domicile in Antigua and Barbuda.
- Ordinary residence in Antigua and Barbuda.
Impact of International Tax Treaties
Antigua and Barbuda has entered into several international tax treaties, including the Double Taxation Agreement (DTA) with the United States. These treaties may modify or provide exceptions to the standard criteria for tax residency.
Key Provisions of Tax Treaties
The DTA between Antigua and Barbuda and the United States includes the following provisions related to tax residency:
- Article 4(1) defines a "resident of a Contracting State" as any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management, or any other criterion of a similar nature.
- Article 4(2) provides a tie-breaker rule for individuals who are considered residents of both Antigua and Barbuda and the United States under the domestic laws of both countries. In such cases, the individual's residence is determined based on the following factors:
- Permanent home available to the individual.
- Center of vital interests.
- Habitual abode.
- Nationality.
Rationale and Objectives
The criteria for determining tax residency in Antigua and Barbuda are designed to ensure that individuals and entities with significant ties to the country are subject to taxation on their worldwide income. The treaties aim to prevent double taxation and promote cross-border trade and investment by providing clear rules for determining tax residency in cases involving cross-border activities.
If you're interested in exploring tax residency in Antigua and Barbuda, it's recommended to consult with a tax professional to determine your specific circumstances and how they may be affected by the country's tax laws and international tax treaties.
