This Caribbean Country Just Abolished Income Tax

Antigua and Barbuda no longer has any personal income tax.

The twin-island country’s government has officially abolished its personal income tax, a move that was first announced in January.

The move to remove all income tax had been a major campaign promise of the country’s current government, led by Prime Minister Gaston Browne.

Prior to the changes, the country had levied an 8 percent tax on people earning an income above $3,500, and 15 percent on those earning an income above $25,000.

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The changes took effect April 1.

“Antigua and Barbuda will become a competitive location to attract the headquarters of companies and for professionals to relocate, thereby creating more jobs. Retirees will choose Antigua and Barbuda as their retirement home; CIP Investors will invest and chose Antigua and Barbuda over our competitors,” Browne said in a statement. “The loss of $37 million from the elimination of the PIT will be partially substituted by an increase in the Revenue Recovery Charge (RRC) from 10 percent to 13 percent, which is expected to yield an additional $20 million in revenue. Mr. Speaker all food items in the ABST basket of goods will be exempt from this increase.”

 

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