International Business Companies (Exemption from Income Tax) Act

Link to law: http://laws.gov.ag/acts/chapters/cap-221.pdf
Published: 1967

International Business Companies (CAP. 221 1

-
(Exemption ji-om Income Tax)

CHAPTER 221

THE INTERNATIONAL BUSINESS COMPANIES
(EXEMPTION FROM INCOME TAX) ACT

Arrangement of Sections
Section

1. Short title and construction.
2. Interpretation.
3. Exemption of profits and gains from income tax.
4. Dividends.
5. Regulations.
6. Saving.

INTERNATIONAL BUSINESS COMPANIES
(EXEMPTION FROM INCOME TAX)

(27th July, 1967.) 911967.

1. This Act may be cited as the International Business Short title and construction.
Companies (Exemption from Income Tax) Act and shall be
read and construed as one with the Income Tax Act Cap. 212.
(hereinafter called the Income Tax Act) and all amendments
thereto.

2. (1) In this Act- Interpretation.
6 < exempted company7' means an international business

company resident in Antigua and Barbuda which
does not carry on trade in the buying or selling
of goods or services in, or originating in, Antigua
and Barbuda;

LAWS OF ANTIGUA AND BARBUDA

2 CAP. 221) International Business Companies
(Exemption from Income Tax)

< < goods" includes commodities, products and securities;

"international business company" means a body
corporate, engaged in trade, whether incorporated
under the laws of Antigua and Barbuda or not, in
the case of which all of the following conditions are
fulfilled:

(a) the body corporate is not by any
means controlled (whether directly or
indirectly) by persons resident in Antigua and
Barbuda;

(b) more than one-tenth of the sums
which on a liquidation thereof, would be
receivable by holders of share or loan capital
would not be receivable (directly or indirectly)
by or for the benefit of persons resident in
Antigua and Barbuda;

(c) more than one-tenth of the assets
which, on a liquidation thereof, would be
available for distribution after the payment of
creditors would not be receivable (directly or
indirectly) by or for the benefit of persons
resident in Antigua and Barbuda;

(4 more than one-tenth-
(i) of the interest payable on its loan and

loan capital, if any; and

(ii) of the dividends payable on its
preference share capital, if any; and

(iii) of the dividends payable on its share
capital, if any, not being preference
share capital,

is not receivable (directly or indirectly) by or
for the benefit of persons resident in Antigua
and Barbuda;

(e) the body corporate does not carry on
banking or insurance business in Antigua and
Barbuda;

LAWS OF ANTIGUA AND BARBUDA

International Business Companies (CAP. 221 3
(Exemption from Income Tax)

' 6 investment company" means a body corporate,
whether incorporated under the law of Antigua and
Barbuda or not, engaged exclusively in the business
of buying, selling, holding or managing securities;

"securities" means shares, stock, bonds, notes (other
than promissory notes), debentures, debenture
stock, units under a unit trust scheme and any other
securities prescribed by the Governor-General for
the purpose of this Act;

''the Commissioner'' means the Commissioner of Inland
Revenue;

"trade" means every trade, business, manufacture,
adventure or concern in the nature of trade or
business.

(2) A shareholder of an international business company
shall not be deemed for the purposes of this Act to be a person
resident in Antigua and Barbuda by reason only that he visits
Antigua and Barbuda from time to time for the purpose of
supervising the operations of that company.

3. (1) The profits or gains of an international business Exemption of
rofits and gains company which is not an investment company shall be rom income tax.

exempt from income tax if, within the prescribed time after
the expiration of an income year the company satisfies the
Commissioner that during the whole of that income year,
it was an exempted company within the meaning of this Act.

(2) In lieu of tax at the rates specified in section 5 of
the Income Tax Act, income tax at a reduced rate of two
and one-half cents on every dollar shall be levied and paid
upon the profits or gains of an international business company
which is an investment company if, within the prescribed
time after the expiration of an income year, the company
satisfies the Commissioner that during the whole of that
income year it was an exempted company within the meaning
of this Act.

4. (1) Any dividend paid by an international business Dividends.
company which is not an investment company to a person

LAWS OF ANTIGUA AND BARBUDA

4 CAP. 22 1) International Business Companies
(Exemption from Income Tax)

not resident in Antigua and Barbuda out of profits or gains
which are exempt from income tax in accordance with
subsection (1) of section 3 shall be exempt from income tax.

( 2 ) In lieu of tax at the rates specified in the Income
Tax Act, income tax at the rate of two and one-half cents
on every dollar shall, subject to the provisions of that Act,
be levied and paid upon any dividend paid by an international
business company which is an investment company to a
person not resident in Antigua and Barbuda out of profits
or gains which are liable to income tax at a reduced rate
in accordance with subsection ( 2 ) of section 3 , and the
company paying the dividend shall be entitled to deduct out
of the dividend the income tax payable thereon in accordance
with this subsection.

( 3 ) Subject to the provisions of the Income Tax Act,
income tax at the appropriate rate specified in or under that
Act shall be levied and paid upon any dividend paid by any
international business company to a person resident in
Antigua and Barbuda and the company paying the dividend
shall be entitled to deduct income tax therefrom at the rate
of forty cents on every dollar thereof.

(4) An international business company making
deduction of income tax pursuant to subsection (2) or
subsection (3) shall be deemed to be collecting tax on behalf
of the Commissioner and shall pay to the Commissioner,
or to such person as he may direct, the amounts so deducted.

(5) Save as otherwise prbvided in this Act, the provisions
of the law relating to income tax shall apply to dividends
paid by an international business company.

Regulations.
/
5. The Governor-General may make regulations for

the following purposes-

( a ) to provide for the returns to be submitted and
the information to be furnished for the purpose of
claiming exemption under this Act;

(6) to prescribe any matters required by this Act
to be prescribed;

LAWS OF ANTIGUA AND BARBUDA

International Business Companies (CAP. 22 1 5
(Exemption from Income Tax) ,

(6) generally for giving effect to the purposes of this
Act.

6. Except so far as this Act may operate to exempt saving.
an international business company from liability to income
tax under the law relating to income tax, all the provisions
of that law which are applicable to a company shall apply
to an international business company.
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