How can an Umbrella Company Help with Contracting in Antigua & Barbuda?
Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.
They’re called Umbrella Companies (or, contractor management companies).
Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.
Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Antigua and Barbuda. Even better, most are experts in Antiguan and Barbudan and expat tax law, meaning they’ll also help you optimise your earnings in Antigua and Barbuda.
Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.
Can I Organise My Taxes and Work Permit Myself?
Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Antigua and Barbuda.
If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.
Also, are you familiar with the intricacies of the tax system in Antigua and Barbuda, as well as your own country’s laws on overseas earnings? If so, good on you!
However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Antigua and Barbuda and your home country can seem like full-time work in itself.
A Contractor’s Guide to Taxes in Antigua & Barbuda
One of the most consistently challenging aspects of contracting in Antigua and Barbuda is complying with the country’s tax system. As well as paying tax in Antigua and Barbuda, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.
How do I calculate my taxable income in Antigua & Barbuda
If you’re working in Antigua and Barbuda under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Antigua and Barbuda for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Antigua and Barbuda, but contractors may not be offered this service because of their short stay with each employer.
Anybody who can’t pay their tax in Antigua and Barbuda through PAYE is left with the prospect doing everything themselves.
Do you know much about Antiguan and Barbudan Tax Law? Does Antigua and Barbuda have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Antigua and Barbuda can range from 0 to 25 percent (for UBT), and you need to be sure you are placed in the correct tax brackets.
Tax Filing as a Contractor in Antigua & Barbuda
| When Do You Need to Lodge Your Tax Return? | 31 March |
| Tax Filing Deadline | 31 March |
| Can you file it online? | Yes |
How to File Taxes in Antigua & Barbuda as a Contractor
Step 1: Register
You are required to file taxes if:
Self-employed;
Are a sole proprietor of a business;
Derive income from a partnership; and/or
Derive income from various sources (e.g. rent etc.).
Individuals receiving employment income only are not required to file taxes.
Obtain a TIN by completing one of the following forms:
Registration of an Individual as an Employee (Form 19(link is external));
Individual Enterprise Registration (Form 15(link is external)) for a sole trader; or
Non-Individual Enterprise Registration (Form 14(link is external)) for a corporation or partnership.
Step 2: Complete Tax Form
Complete form F49 which can be found here(link is external). A guide to completing this form can be found here(link is external). Submit the completed form to the Inland Revenue Department by mail, or in person to the following address:
Inland Revenue Department
Newgate Street,
St John’s, Antigua
Step 3: Receive Notice of Assessment
The IRD will review your form for completeness and accuracy. If you have a tax credit or liability, an assessment notice will be mailed to you along with an explanatory note.
In the case of an incomplete or incorrectly filled form, the IRD can determine the amount of tax to be paid and send you a Notice of Assessment requiring you to remit the amount of tax due within 30 days after the date of the assessment notice, or file a proper personal income tax return.
In the case of non-filing, the IRD will determine the amount of tax to be paid and send you a Notice of Assessment, requiring you to file a proper personal income tax return, or remit the amount of tax due within 30 days after the date of the assessment notice.
Tax Figures in Antigua & Barbuda
| Currency | Eastern Caribbean Dollar (XCD) | ||||||||
| Tax-free Threshold in Antigua & Barbuda | N/A | ||||||||
| Income Tax Rates |
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|---|---|---|---|---|---|---|---|---|---|
| Notes | Employment income is exempt from tax in Antigua and Barbuda. |
Tax Residency in Antigua & Barbuda
When do you become a tax resident in Antigua & Barbuda
You become a tax resident in Antigua & Barbuda when:
• Your permanent place of abode is Antigua and Barbuda and you are physically present there for some period of time during the income tax year; or
• You are physically present in Antigua and Barbuda for at least 183 days during the income tax year.
Does the 183 day rule apply in Antigua & Barbuda
Yes
Am I taxed on my global income in Antigua & Barbuda
Residents are taxed on their global income. Non-residents are taxed on their Antigua and Barbuda-sourced income only.
Can you set up your own Limited Company in Antigua & Barbuda?
| How long does it take to set up | 22 days |
| How much does it cost | XCD3,455 |
| Is it easy? | Starting a Business Rank: 126/190 (Source: World Bank) |
Tax Calculator in Antigua & Barbuda
If you are a contractor and want a calculation on your tax and net retention in Antigua and Barbuda, we can supply it to you free of charge.
Using an Umbrella Company for Income Tax in Antigua & Barbuda
Contractors in Antigua and Barbuda are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. An Antiguan and Barbudan umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).
The companies are experts in Antigua and Barbuda taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Antiguan and Barbudan tax office or tax department directly including processing your tax refund if you are eligible.
How We Can Help You with Tax in Antigua & Barbuda
We work with numerous umbrella companies in Antigua and Barbuda, many of whom are experts in tax and immigration laws. If you have any questions about tax in Antigua and Barbuda, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Antiguan and Barbudan work permit.
Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Antigua and Barbuda but without the overhead of directly dealing with the Antiguan and Barbudan tax authorities. Get in touch with us today for some reliable advice on tax in Antigua and Barbuda!
A Contractor’s Guide to Work Permits in Antigua & Barbuda
Immigration is one of the primary concerns for any contractor hoping to start working in Antigua and Barbuda. Permanent employees will find it easy to get their Antiguan and Barbudan work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.
The Antiguan and Barbudan work permit, known more commonly as the Antiguan and Barbudan work visa, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Antigua and Barbuda is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
Work Permit Processing Time
Approximately 2 weeks
Can Work Permit be Processed in Country?
Citizens of the EU, the United States of America, Australia, Canada, Israel, Japan, New Zealand, Switzerland and the Republic of Korea, can apply for their residence permit for work purposes after entering Germany without a visa. Citizens of other countries are required to apply and obtain a visa for work purposes before entering Germany.
How Does an Umbrella Company Work?
Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.
When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.
While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Antigua and Barbuda (which means avoiding fees, fines, or even worse penalties).
How Can We Help You?
There’s a huge variety of Umbrella Companies with different specialities and advantages in Antigua and Barbuda. How do you find the right one for your circumstances?
We work closely with Umbrella Companies all throughout Antigua and Barbuda and match contractors with the right company for them. If you’ve already secured a contract in Antigua and Barbuda, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free).
