Advanced Search

International Business Corporation (Amendment) Act 2001

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
No: 9 of 2001. The International Business Corporation 1 ANTIGUA
(Amendment) Act 2001. AND

BARBUDA

[ L.S. ]

I Assent,

James B. Carlisle,
Governor-General.

16th May, 2001.

ANTIGUA AND BARBUDA

No. 9 of 2001

AN ACT to amend the International Business Corporation Act,
Cap. 222.

[ 17th May, 2001 ]

ENACTED by the Parliament of Antigua and Barbuda as fol-
lows -

1. This Bill may be cited as the International Business Corpo- short title.
ration (Amendment) Act 2001.

2. The International Business Corporation Act, in this Act re- Amendment of
ferred to as the principal Act, is amended by the repeal of sec- 272.

tion 272 and by the substitution of the following -

"272 (1) Except as provided by this Act, no income
tax, capital gains tax or other direct tax or impost shall be
levied in Antigua and Barbuda upon the profits or gains
of an exempt corporation in respect of the international
trade and business it caries on from within Antigua and
Barbuda.

(2) Except as provided in this Act, no income tax, capi-
tal gains tax or other direct tax or impost shall be levied in
Antigua and Barbuda in respect of any dividends or earn-

ANTIGUA 2 The International Business Corporation No. 9 of 2001.
AND (Amendment) Act 2001.

BARBUDA

ings attributable to shares, securities or assets of an ex-
empt corporation that are beneficially owned by another
corporation incorporated under this Act or by a person
who is not a resident.

(3) Except as provided by this Act, no estate, mherit-
ance, succession or similar tax or impost shall be levied in
Antigua and Barbuda in respect of any shares, securities
or assets of an exempt corporation that are beneficially
owned by an exempt corporation or a person who is not a
resident.

(4) Except as provided in this Act, no tax or impost
shall be levied upon the increment in value of the prop-
erty or other assets in Antigua and Barbuda or elsewhere
of an exempt corporation other than upon such of them as
are distributed to residents.

Repeal and 3. (1) Except as provided by this Act, no tax, duty or other
substitution of impost shall be levied upon an exempt corporation, its share-
section 273. holders, or security holders, or transferees in respect of the trans-

fer of all or any part of its securities or other assets to another
exempt corporation or to a person who is not a resident of Antigua
and Barbuda.

(2) Where an exempt corporation or a person who is not a
resident of Antigua and Barbuda transfers shares, securities or
assets of an exempt corporation that are held by that exempt
corporation or person to another exempt corporation or to an-
other person who is not a resident of Antigua and Barbuda, the
transfer is exempt from the payment of any tzx, duty, or other
impost thereon.

(3) Except as is provided by this Act, no income tax or capital
gains tax, and no other direct tax or impost may be levied or
collected in Antigua and Barbuda, in respect of any dividends,
interests or returns from any shares, securities, deposits or bor-
rowings of an exempt corporation or any assets managed by the
exempt corporation, if the dividends, interests or other returns
are in respect of shares, securities, deposits, borrowings or as-
sets beneficially owned by another exempt corporation or a per-
son who is not resident in Antigua and Barbuda; but the onus of
establishing ownership lies upon the exempt corporation hold-
ing or managing the deposits, borrowings or assets.

No. 9 of 2001. The International Business Corporation 3 ANTIGUA
(Amendment) Act 2001. AND

BARBUDA

4. Section 280 of the principal Act is repealed and the follow- section 280
ing substituted - repealed and

substituted.

Exemption from
exchange control
and stamp duty
Act.

280. (1) The income, profits, gains, divi-
dends, securities, other revenue and funds of
an exempt corporation that are generated, ac-
quired or managed in the course of interna-
tional trade or business of the exempt corpo-
ration are exempt from the Exchange Control
Act; and unless the exempt corporation is a
resident of Antigua and Barbuda, the income,
profits, dividends, gains and other revenues
of the exempt corporation are also exempt
from that Act.

(2) The Stamp Act shall not apply to an
exempt corporation in respect of all transac-
tions entered into in relation to the exempted
corporation's international trade or business.

5. Section 28 1 of the principal Act is repealed and the follow- Section 281
ing substituted - repealed and

substituted.

"Tax on gross 28 1. (1) Notwithstanding anything con-
income. tained in the Income Tax Act, in this section

referred to as "the Act", every exempt corpo-
ration carrying on the business of banking un-
der this Act shall be chargeable to income tax
imposed by the Act in respect of gross income
from the operations and investments of its
business.

(2) The income tax imposed by the Act
upon the chargeable income of an exempt cor-
poration carrying on the business of -

(a) banking from Antigua and
Barbuda, shall be charged at the
rate of three percentum (3%) on
the gross income of its operations
and investment;

(b) ' internet gaming, sports books and
virtual casinos from Antigua axid

ANTIGUA 4 ThC International Business Corporation No. 9 of 2001.
AND (Amendment) Act 2001.

BARBUDA

Barbuda shall be charged at the
rate of three (3%) percentum of
the gross handle.

(3) For the purposes of the Divi-
sion -

(a) gross income in relation to bank-
ing business carried on under this
Act means interest income and
fees derived from the operations
and investments of the banking
business minus interest expense;

(h) gross handle in relation to internet
gaming, sports book and virtual
casinos camed on under this Act,
means gross take-in minus
payouts to clients on bets.

(4) An exempt corporation shall, for the
purposes of the Division, be deemed to be a
company and, subject to this Act, the provi-
sions of the Act as to liability to assessment
and collection of the income tax imposed by
the Act shall apply mutatis mutandis to an ex-
empt corporation.

Amendment of 6. Section 3 16 of the principal Act is amended as follows -
section 3 16.

(a) in subsection (5) by the deletion of thefull stop af-
ter the word Minister and the substitution therefor
of a colon; and

(b) by inserting after the colon the following -

"is a shareholder, director, officer or employee
of a banking, insurance or trust corporation
licensed under this Act."

No. 9 of 2001. The International Busineg brporation 5 ANTIGUA
(Amendment) Act 2001. AND

BARBUDA

Passed the House of Representatives this Passed the Senate this 26th day
1 lth day of April, 2001. of April, 200 1.

B. Harris,
Speaker.

M. Pereival,
President.

Y. Henry, Y. Henry,
Acting Clerk of the House of Representatives. Acting Clerk to the Senate.

Printed at the Government Printing Office, Antigua and Barbuda,
by Donovan Southwell, Government Printer

- By Authority, 200 1.
800-5.01 [ Price $2.60 ]