Income Tax (Amendment) Act, 2008

Link to law: http://laws.gov.ag/acts/2008/a2008-3.pdf

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The Income Tax (Amendment) Act, 2008.pmd
ANTIGUA AND BARBUDA

THE INCOME TAX (AMENDMENT) ACT, 2008

No. 3 of 2008

[Published in the Official Gazette Vol. XXVIII No. 81
dated 4th December, 2008. ]

________
Printed at the Government Printing Office, Antigua and Barbuda,

by Eric T. Bennett, Government Printer
— By Authority, 2008.

800—12.08 [Price $2.95]

No. 3 of 2008.The Income Tax (Amendment) Act, 2008. 2

No. 3 of 2008. The Income Tax (Amendment) Act, 2008.3

THE INCOME TAX (AMENDMENT) ACT, 2008

ARRANGEMENT

Sections

1. Short title

2. Interpretation

3. Insertion of section 15A– Deduction for social or cultural contribution

4. Replacement of section 32 – Rates of tax on income of companies

5. Repeal of section 37A – Cultural or social tax credits

No. 3 of 2008.The Income Tax (Amendment) Act, 2008. 4

No. 3 of 2008. The Income Tax (Amendment) Act, 2008.5

I Assent,

[ L.S.]

Louise Lake-Tack,
Governor-General.

11th November, 2008

ANTIGUA AND BARBUDA

THE INCOME TAX (AMENDMENT) ACT, 2008

No. 3 of 2008

AN ACT to amend the Income Tax Act, Cap.212.

ENACTED by the Parliament of Antigua and Barbuda as follows:

1. Short title

This Act may be cited as the Income Tax (Amendment) Act, 2008.

2. Interpr etation

In this Act, “principal Act” means the Income Tax Act, Cap. 212.

3. Insertion of section15A

(1) The principal Act is amended by inserting the following section after section 15:

“15A. Deduction for cultural or social contribution

(1) For the purpose of ascertaining the charge ble income of any person who meets the criteria set
out in this section in an assessment year, th t person may deduct from that person’ assessable income

No. 3 of 2008.The Income Tax (Amendment) Act, 2008. 6

from a trade, business or profession for that assessment year an amount equal to one-half of all
substantial contributions made by the person in respect of sport, education or culture in Antigua and
Barbuda.

(2) The criteria referred to in subsection (1) are:

(a) the person must have made, during the assessment year, a contribution of no less than
$10,000.00 to the development of sport, education or culture in Ant gua and Barbuda;

(b) the Permanent Secretary of one or more of the Ministries responsible for Sports, Educa-
tion and Culture has certified that the contribution made by the person does in fact con-
tribute to sport, education or culture in A tigua and Barbuda; and

(c) the person must have paid all amounts in respect of the assessment year with respect to
withholdings and amounts owing under this Act, the Personal Income Tax Act, 2005,
(No. 1 of 2005), the Antigua and Barbuda Sales Tax Act, 2006 (No.5 of 2006) and any
other requirements with respect to any of the person’s employees.

(3) The maximum amount of a deduction under this section is $250,000.00 for an assessment
year.”

4. Replacement of section 32

Section 32 of the principal Act is repealed and substituted with the following:

“32. Rates of tax on income of companies and certain financial institutions

(1) Except to the extent provided in subsections (2) and (3), the tax on the charg able income of a
company shall,

(a) for each income year in the period commencing on the 1st April 2005 and ending on the
31st December 2007, be charged at the rate of thirty percent per dollar of the charge ble
income; and

(b) for the period commencing on the 1st January 2008 and ending on the 31st December
2008, and for subsequent income years, be charged at the rate of twenty-five percent per
dollar of the chargeable income.

(2) In respect of each income year in the period commencing on the 1st January 2005 and ending
on 31st December 2007, the tax on the chargeable income of a financial institution licensed under the
Banking Act that maintains, throughout that year, its commercial lending rates at or below ten percent
and its residential mortgage rates at or below eight percent shall be charg d at the rate of twenty-
seven and a half percent per dollar of the charge ble income.

No. 3 of 2008. The Income Tax (Amendment) Act, 2008.7

(3) In respect of the income year commencing on the 1st January 2008 and each subsequent income
year, the tax on the chargeable income of a financial institution licensed under the Banking Act shall
be charged at the rate of twenty-two and a half percent of the chargeable income if

(a) the institution maintains, throughout that year, its residential mortgage rates at or below
seven percent; or

(b) offers to small businesses within the meaning of the Small Business Development Act,
2007, (No. 24 of 2007) loans

(i) at a lending rate at least one and a half a percentage points below the prime lending
rate otherwise fixed for that financial institution,

(ii) for which the security requirements are substantially less restrictive than those oth-
erwise required by that financial institution, or

(iii) loans in respect of which other special concessions, within the meaning of the regu-
lations, are provided.”

5. Repeal of section 37A

Section 37A of the principal Act is repealed.

Passed by the Senate on the 21st day
of August, 2008.

Hazlyn M. Francis,
President.

L. Thomas,
Acting Clerk to the Senate.

Passed by the House of Representatives on
the 7th day of July, 2008.

D. Gisele Isaac-Arrindell,
Speaker.

L. Thomas,
Acting Clerk to the House of Representatives.