Self-Employed Tax in Antigua and Barbuda

Antigua and Barbuda stands out among Caribbean jurisdictions for one headline fact: personal income tax was abolished in April 2016. A self-employed sole trader or partner resident in the country pays no income tax on personal earnings. What remains is a targeted set of business-level obligations: the Unincorporated Business Tax, social security and medical-benefits contributions, a business registration fee, and the Antigua and Barbuda Sales Tax once a turnover threshold is crossed.

Do self-employed people pay income tax in Antigua and Barbuda?

No. The Personal Income Tax Act was repealed effective April 2016, and no replacement personal income tax has been enacted. A self-employed individual resident in Antigua and Barbuda owes zero income tax on business profits, service income, or any other form of personal earnings. This distinguishes Antigua from most of the English-speaking Caribbean, where personal income tax continues to apply (Jamaica applies a 25-30% rate; Barbados applies 12.5-28.5%; Trinidad and Tobago applies 25% on chargeable income above TTD 84,000). The Inland Revenue Department (IRD) confirms the abolition through its public guidance at ird.gov.ag.

What is the Unincorporated Business Tax, and how is it calculated?

The Unincorporated Business Tax (UBT) applies to every individual carrying on business as a sole trader or in an unregistered partnership. It is charged on chargeable income - annual gross business income minus allowable business deductions - at a three-band sliding rate. All individuals carrying on unincorporated business must register with the IRD, obtain a Tax Identification Number (TIN), and file Form F15 annually. Estimated tax payments are due quarterly. The chargeable income is calculated as gross receipts less expenses incurred wholly and exclusively for the business; personal domestic expenses are not deductible. In addition to the tax itself, an annual business registration fee is payable to the IRD based on gross income (not chargeable income): XCD 200 for gross income between XCD 30,000 and XCD 60,000; XCD 300 for gross income between XCD 60,001 and XCD 300,000; and XCD 400 for gross income exceeding XCD 300,000.

XCD 1.00 equals approximately USD 0.37 (Eastern Caribbean Dollar is pegged to the US dollar at XCD 2.70 = USD 1.00). The XCD 42,000 exempt band is therefore approximately USD 15,556; the 25% band begins at approximately USD 68,889.

What social security and medical-benefits contributions does a self-employed person pay?

Self-employed individuals are responsible for registering with the Antigua and Barbuda Social Security Board and paying contributions on their own account. Unlike employed workers, whose contributions are split between employer and employee, the self-employed person bears the full contribution rate.

The Social Security Board sets the self-employed rate at 10% of insurable earnings. Insurable earnings are capped at XCD 6,500 per month (approximately USD 2,407), so the maximum monthly social security contribution is XCD 650. The Medical Benefits Scheme (MBS), administered separately by the Medical Benefits Division, requires an additional contribution of 5% of earnings for self-employed individuals aged 16 to 59, and 2.5% for those aged 60 to 69. Individuals aged 70 and over are exempt. Combined, a self-employed person aged under 60 contributes up to 15% on insurable earnings toward these two social-protection schemes. Contributions are registered and remitted through the Social Security Board (socialsecurity.gov.ag) and the Medical Benefits Scheme (mbs.gov.ag).

Does a self-employed person need to register for ABST?

The Antigua and Barbuda Sales Tax (ABST) is a value-added tax levied at 15% on most taxable goods and services. A self-employed person whose annual taxable turnover equals or exceeds XCD 300,000 (approximately USD 111,000) must register with the IRD as an ABST registrant. Voluntary registration below the threshold is also permitted. Once registered, the business must file monthly ABST returns, remitting net ABST collected (output tax) minus ABST paid on business inputs (input tax credit) to the IRD by the end of the month following each tax period. A reduced rate of 12.5% applies to hotel accommodation. Many professional and consultancy services fall within the standard 15% rate. Failure to register when the threshold is exceeded is an offence under the ABST Act. See the Antigua and Barbuda country overview for broader context on the country's tax environment. For sector-specific queries a self-employed person should consult the ABST registration guide published by the IRD at ird.gov.ag.

How does the self-employed position differ from employment?

An employee in Antigua and Barbuda pays no personal income tax and contributes to Social Security at a rate of 6% of insurable earnings (private sector) or 5.5% (public sector), with the employer matching at 8.5% and the Medical Benefits Scheme collecting a combined 7% (3.5% each from employee and employer for ages 16-59). A self-employed person, by contrast, bears the full Social Security contribution of 10% and the full Medical Benefits contribution of 5% with no employer to share the cost. On the business-income side, an employee has no UBT liability because employment income is exempt from UBT; it is the self-employed person operating a business who faces the 0-8-25% UBT schedule. The self-employed person also carries the compliance burden of quarterly UBT payments, an annual Form F15 return, and ABST monthly returns where applicable. The net result is that the self-employed person typically faces a higher effective contribution burden than a comparably paid employee, even though both pay zero personal income tax.

Self-employed individuals with complex income structures, cross-border clients, or turnover approaching the ABST registration threshold are encouraged to engage a qualified tax professional for guidance on compliance obligations and record-keeping requirements. The Antigua and Barbuda country overview lists practitioners familiar with the local regulatory environment.