Investment climate

• Government attitude toward foreign investment
• Trace policy
• Taxation policy
• Local competitor attitude toward foreign investment

• Labor attitude toward foreign investment

Tax concessions

lndustry incentives

• Industries affected
• Fiscal Incentives Act 1975
• Import duty exemptions
• Hotels Aid Ordinance
• Additional incentives

International financial center operations

Export incentives

Incentives and foreign investment strategy

Regulatory climate

• Regulatory authorities
• Regulatory legislation

Exchange controls

• lnward investment
• Registration of foreign capital
• Currency accounts
• Repatriation of capital and earnings
• Limitations on imports
• Surrender of proceeds of exports
• Limitation on exports

Restrictions on foreign investment

• Industries closed to private enterprise
• Restrictions on foreign ownership
• Restricted direct investments
• Restricted borrowings from abroad
• Nonresident borrowings from local sources
• lnvestment in land

Policy trends

• Effect on foreign investment

* Tax holidays and ready repatriation of capital and profits.

* Positive attitude of local persons and businesses.

* Preferential trade agreements.

* Good international communications.

The Government of Antigua and Barbuda welcomes new private foreign investment.

Foreign investors are permitted to acquire real estate property, subject to the acquisition of a license, as set out in the Non-Citizens Land Holding Regulations Act.

In the past there have been attempts to protect local industry against imported competition. The policy now generally leans toward free trace, although import censes are required for most products.

Foreign investment is treated in the same way as local investment, and tax holidays and other incentives are available to any qualifying operation.

The government and the local business community welcome foreign investment. Joint ventures between foreigners and local persons are not uncommon.

Foreign investors are generally regarded as being desirable employers.

The preferential trace agreements with the United States, Canada, Europe, and other parts of the Caribbean open up an enormous potential market (see Chapter 2 for discussion).

The government's positive attitude, willingness to grant incentives and general support all help create the right climate for investment in Antigua.

Foreign investment is welcome. The incentives provided include tax holidays, duty-free imports, and the right to repatriate investment and profits. The main restrictions relate to land ownership, where a license has to be obtained under the Non-Citizens Land Holding Regulations Act.

lnvestment possibilities exist in the various aspects of Antigua's economy. it is not a requirement to have a local partner in a business venture.

All foreign-owned enterprises require the government's approval to trace in Antigua, and the Cabinet will have to approve any fiscal incentives.

Usually a local company is incorporated, but business may be conducted as a branch, joint venture or partnership, or as an individual. There may be tax advantages in not being a company, since the corporate rate of tax is higher than the unincorporated business tax (see Chapter 19) or personal tax rates (see Chapter 20).

The recommended route for a foreign investor is to make a proposal directly to the Minister of Economic Development.

lnvestment incentives cover income tax, import duties and exchange controls. These are available to All foreign investors.

Export-oriented manufacturing and agricultural projects are of particular interest to the government, but tourism projects in both the islands of Antigua and Barbuda are also actively encouraged.

The government favors investors who bring capital to the country, but some finance is available from local banks.

The incentive packages provided generally allow ready repatriation of capital and profits. Where no such incentives apply, it is necessary to apply for Exchange Control approval to repatriate funds. This is usually not a problem, provided All relevant taxes, if applicable, have been paid.

Although unemployment is low, labor is available either locally or from neighboring islands.

Before any proposed project is commenced, a full market study is recommended.

Companies registered under the International Business Companies Act 1982 have an automatic 50-year guarantee of tax-free status together with various other privileges. This legislation relates to banks, trust companies and insurance companies, as well as to other international business companies.

Full information on foreign investment in Antigua can be obtained from Price Waterhouse in Antigua (see the address on the inside front cover), which can advice on every aspect of doing business in Antigua and Barbuda.

• A tax holiday of 5 to 15 years is available, with a 5-year extension under certain circumstances.
• Companies incorporated under the International Business Corporations Act 1982 enjoy a wide
• variety of incentives.
• Export-oriented businesses are eligible for tax rebates.
• Relief is given from customs duties and other indirect taxes.
• Exemption from exchange control regulations is possible.
• A guaranteed number of work permits are provided for foreign nationals. Trade bloc memberships include: Caricom, Lom Convention, CBI, and Caribean.

The main thrust of the government's incentives policy is to give new qualifying ventures relief from local direct and indirect taxation and exemption from exchange control regulations.

All types of investment are encouraged, with the ultimate goal of achieving economic growth and full employment in a diversified economy. In recent years, international business companies (see below and Chapter 7) have been given every encouragement to establish bases in Antigua.

The Cabinet offers tax holidays to qualifying ventures regardless of their location in Antigua, subject to approval.

Careful consideration has to be given by overseas companies to ensure that the untaxed profits arising in Antigua are protected as far as possible from taxation elsewhere.

Manufacturing enterprises are offered incentives under the Fiscal lncentives Act 1975.

Hotel construction and extensions are given incentives under the Hotels Aid Ordinance and the lncome Tax Act.

All other enterprises that the government wishes to encourage are considered on their merits and granted such concessions as the Cabinet deems appropriate.

• lncome tax holidays

Manufacturers qualifying for approved status receive corporate tax holidays of between 10 and 15 years. The usual corporate tax rate is 40 percent. Export-oriented Industries that have approved status qualify for the maximum of 15 years'tax holiday.

Based on how well an industry has assisted in the government's overall development objectives, an additional five years of tax relief may be granted at the expiration of the tax holiday.

The Fiscal Incentives Act 1975 classifies four types of enterprise that qualify for a tax holiday, as shown in Table IV. The length of the holiday for the first three depends on the amount of value added in Antigua. The definition of local value added is the amount realized from the sales of the product over a continuous period of 12 months, minus the following amounts.

1. Cost of imported raw materials, components, parts of components,
2. fuels, and services.
3. Wages and salaries paid to foreign nationals.
4. Profits and dividends distributed to foreign nationals.
5. lnterest, management charges and other income payments to nonresidents (including companies).
6. Depreciation of imports of plant, machinery and equipment.

The fourth type of enterprise, known as an enclave industry, must produce exclusively for export outside of the Caricom region.

Antigua provides nonfiscal incentives to companies with a rebate for a portion of their income tax paid based on their export profits as a percent-age of total profits. The schedule is as shown in Table V.

A license may be issued to an approved enterprise to import duty-free All equipment, machinery, spare parts, and raw materials used in production.

The Hotels Aid Ordinance grants exemption from customs duties on all imports of building materials, machinery, equipment, and furniture for the construction or extension of hotels. An extension usually has to be a minimum of ten rooms to qualify.

The Income Tax Act refers to the Hotels Aid Ordinance and grants a tax holiday of five years to a hotel with the additional right to write off against subsequent profits 20 percent per annum of the capital cost of the hotel over any five of the eight years following the tax-holiday period.

Apart from incentives covered under the above statutes, the government will grant additional incentives in certain circumstances. These include exemption from withholding taxes on interest payments, exemption from the 1 percent levy on foreign exchange conversions, a guaranteed number of work permits for foreign nationals, ¡¡censes to own freehold property, and leases of factory buildings, subject to availability

The Government of Antigua and Barbuda passed new offshore legislation on December 31, 1982, the International Business Corporations Act 1982. After regulations were completed, the laws became effective March 31, 1983. The new offshore legislation is one of the most modern laws in the Caribbean and contains provisions for international business companies (IBCs), banks and insurance companies.

The basic features of this Act provide for complete tax exemption, complete exchange control exemptions and freedom to operate bank accounts anywhere, as well as an automatic 50-year guarantee of tax-free status. For details see the heading "Offshore financial services-international Business Corporation Act 1982" in Chapter 7.

The Fiscal Incentives Act is primary aimed at export-oriented Industries(see "Fiscal Incentives Act 1975" above for details).

Apart from being an excellent tourist location, Antigua lacks the natural resources to enable it to fuel its economy. Foreign investment is therefore essential and the government's policy of granting investment incentives has met with considerable success. The extension of these incentives, on the basis of merit, to enterprises that are not describes in the relevant Acts is an indication of the confidence the government has in its incentives policy. The constant flow of inquiries from prospective investors and the number of new enterprises being established show how attractive the incentives are to overseas investors, and All the indications are that this policy will be continued.

• Capital and earnings can be repatriated.
• Hundred percent foreign ownership is permitted.
• A wide range of enterprises is available for investment.
• Joint ventures with local persons are encouraged but are not essential.
• An exchange levy of 1 percent is charged on outward movements of currency unique exemption has been given.
• Local borrowings by a foreigner are subject to a 3 percent stamp tax unique exemption has been given.
• Land purchases require an alien landholders' cense.

Exchange controls are administered by the Ministry of Finance. Applications for foreign currency are dealt with by the Financial Secretary.

Regulatory legislation

Exchange control regulations have been compiled over a number of years and are issued by the Ministry of Finance from time to time.

Approval must be granted for the operation of a foreign currency account to avoid inward movements of foreign currencies being converted into Eastern Caribbean dollars.

For Exchange Control purposes, inward movements of currency may be registered with the Ministry of Finance as being approved for subsequent repatriation. Local commercial banks will assist the foreign investor in arranging registration,

Subject to Exchange Control approval, a local or foreign company or individual may open an account in a foreign currency (generally U.S. dollars) if he can demonstrate a particular need for so doing. Tourist-oriented Industries are generally treated favorably, but the accounts must be serviced with funds from abroad.

Repatriation of capital is normally approved at the time a foreign investor makes his investment in Antigua. In the absence of such approval, it may be obtained on exit and this does not generally present a problem.

Payments of interest, dividends, royalties, service tees, etc., require Exchange Control approval, which will be granted provided the Financial Secretary is satisfied that any relevant income taxes or withholding taxes have been property accounted for.

A 1 percent foreign exchange levy is payable on purchase of foreign currency unique specific exemption has been granted (see Chapter 7).

There are no Exchange Control limitations on the kinds of goods that may be imported. There are no limitations on credit terms.

Export proceeds must be converted into local currency unique a foreign currency account has been approved.

There are no limitations on the kinds of goods that may be exported.

Export credit terms are not prescribes by regulation.

The only enterprises that are wholly in the public sector are the administration of the public utilities, i.e., electricity, water, local (but not overseas) telephone services, and the airport and seaport.

The basic philosophy is that local persons should have every opportunity to control All aspects of the economy and that foreign involvement is only necessary when a level of capital or expertise is not locally available.

However, this thinking is by no means rigidity adhered to and many enterprises are owned and operated by foreigners on the basis that they help foster investor confidence.

Joint ventures are encouraged and local partners can be extremely useful with their knowledge of local conditions.

Approval must first be obtained, but up to 1 00 percent foreign ownership of enterprises is permitted.

Foreign borrowing by residents is subject to control. Potential borrowers must state the repayment terms of the loan agreement and must furnish evidence that the loan funds have been remitted to Antigua from an external account. Provided these requirements are met, permission is granted for the release of foreign currency to enable the borrower to meet the repayment commitments under the foreign loan agreement.

Local borrowing by noncitizens, or by locally incorporated companies controlled by noncitizens, is permitted only at the discretion of the Ministry of Finance. There is no specific ratio that foreign investment must bear to the intended local borrowing. However, stamp tax of 3 percent is levied on All local borrowings by noncitizens. A noncitizen is defined as any person who is not an Antigua or any company that is under the control of noncitizens (a company is deemed under the control of noncitizens if more than one-third of its issued shares is held by unlicensed noncitizens).

The Non-Citizens Land Holding Regulation Act 1968 prohibits an unlicensed noncitizen from holding freehold land or a lease for more than five years or a mortgage on land.

As noted above, an unlicensed noncitizen includes a local company if more than one-third of its issued shares is held by unlicensed noncitizens.

In order to become licensed, a noncitizen must have his license application approved by the Cabinet and must pay a fee of 5 percent of the value of the land or EC$1 00 in respect of a mortgage on land or EC$400 in respect of an interest, i.e., shares in a local company.

The government is very conscious of investors' fears of exchange controls and the damaging effect of these to their investment plans. To overcome these fears, exchange control concessions are readily granted to potential investors and should not be seen as a serious barrier to doing business in Antigua. it is only in exceptional circumstances that any kind of restriction is placed on the movements of funds.

The safest approach is to get the position clarified from the outset and to ensure that permission is granted to repatriate the original investment plus any profits arising therefrom. All funds transferred to Antigua should be registered and this can be handed by a local bank.

LAWS OF ANTIGUA AND BARBUDA

Arrangement of Sections

Section

1. Short Title
2. Interpretation.
3. Establishment of Fund and payments into and out of Fund.
4. Imposition and collection of levy
5. Assets identifiable in Treasury
6. Powers of Minister
7. Powers of Financial Secretary.
8. Power to vary levy.
9. Penalty
10. Application of provisions of Hotels Tax Act

HOTEL GUEST (LEVY)

(15th December, 1982)

19/1982.

S.1.3011988.

1.- This Act may be cited as the Hotel Guest (Levy) Act.

2.- In this act-

"guest", "hotel", "hotel-bill" and "proprietor" have the same meanings respectively as they have in the

Hotels Tax Act.

"Minister" means the Minister to whom responsibility for finance is assigned.

(1) There is hereby established an Hotel Levy Fund (hereinafter referred to as "the Fund") which shall be controlled by the Minister.

(2) There shall be paid into the Fund all moneys collected by proprietors under this Act.

(3) Subject to this Act the Minister may, from time to time, authorize payments out of the Fund for the promotion and development of tourism in Antigua and Barbuda.

(1) There is hereby imposed a levy of two per centum upon the amount of, every hotel bill and that levy, shall be paid by the guest to whom such hotel bill relates and shall be collected from that guest. by the proprietor of the hotel concerned.

(2) Notwithstanding the provisions of subsection (1), no levy shall be payable by-

a) a guest who is a representative of-

• any Government;

• a United Nations Agency;

• the Commonwealth Fund for Technical Co-operation;

• the Organization of American States;

• the Caribbean Community;

• the Organization of East Caribbean States, and

5.- All moneys paid and collected under this Act for the purposes of the Fund shall be paid into the Treasury and held therein for the account of the Fund.

6.- The Minister shall, in respect of every year, cause to be prepared and laid before the House, within ninety days of the first day of January in every year, estimates of the resources available to the Fund and of the expenditure to be applied to the promotion and development of tourism. from the Fund in that year.

7.- The powers of the Minister under section 3 shall be exercised by warrant under his hand. Minister.

8.- The Financial Secretary may give instructions writing for the better carrying into effect of the provisions of this Act.

(1) The Minister may by Order published in the Gazette vary the rate of the levy specified in the section 4.

(2) Every Order made under this section shall be subject to affirmative resolution of the House.

10.- Any proprietor who willfully omits or neglects to collect from any guest the levy imposed by this Act or who having collected such levy fails to pay it into the Treasury in compliance with this Act is guilty of an offence and liable on conviction therefor to a fine of one thousand dollars or to imprisonment for six months.

11.- The provisions of the Hotels Tax Act, shall to he collection of the levy imposed by this Act as though that levy were a tax to which that Act applies.

Arrangement of Sections

Section

1. Short title
2. Interpretation
3. Common tariff.
4. Obligation of hotel proprietor.
5. Duty to receive goods in safe custody.
6. Liability of proprietor for loss of or damage to property of guest.
7. Limits of liability.
8. Lien and power of sale

Schedule

HOTEL PROPRIETORS

An Act relating to the rights and liabilities of hotel proprietors.

1.- (27th December, 1984)

15/1984.

This Act may be cited as the Hotel Proprietors Act.

2.- In this Act-

"guest" means a person received into an hotel for the purpose of partaking of food or drink or using sleeping accommodation provided in the hotel;

'hotel" means any place or establishment held out by the proprietor as offering food and drink, and lf so required, sleeping accommodation to any person presenting himself who is willing and able to noble sum for the services and facilities pay a reason provided and who is in a fit state to be received therein;

"proprietor" means any person having the management or control of an hotel and the conduct of the business therein.

3.-

(1) The proprietor shall fix a scale of, charges for the provision of facilities to guests at that hotel and may in the common tariff specify different charges for the provisions of different facilities based on the differences in quality or quantity of those facilities.

(2) The proprietor shall cause to, be kept, conspicuously displayed in a place at or near the reception desk, or at or near the main entrance to the hotel a copy of the common tariff printed in plain type so that it may easily be read by a guest or visitor.

(3) A proprietor who:

1. Fails to comply with subsection (2); or.
2. Charges for the provision of any facility to a guest at his hotel an amount exceeding that specified in the common tariff in relation to that facility; is guilty of an offence and is liable on summary conviction to a fine of one thousand dollars.

4.- Any proprietor who refuses to receive any person as a guest by reason of such person's race, religion or color is guilty of an offence and is liable on summary conviction to a fine of five thousand dollars and to imprisonment for six months.

(1) Subject to subsections (2) and (3) a proprietor shall receive and keep in safe custody any property tendered to him ' or his servant @ by a guest- for safe custody.

(2) A proprietor or his servant may refuse to receive and keep in safe custody any property tendered by a guest which appears to him to be noxious, unwholesome or dangerous or, having regard to the size or standing of the hotel, to be cumbersome or of excessive value.

(3) A proprietor or his servant may, as a condition to accepting property for deposit, require that it be deposited in a container fastened and sealed by the person depositing it and that the value of the property be declared by the depositor at the time of the deposit.

(4) Any property required to be deposited in a container fastened and sealed by the person depositing it shall be so dealt with in the presence of the proprietor or his servant after that property has been inspected or checked, as the case may be, by the proprietor or his servant.

(5) For the purposes of this section, "servant" means servant authorized or, appearing to be authorized to receive property for safe custody.

1. Subject to subsection (2), a proprietor is to make good to a guest any damage to or loss of any property brought to the hotel by a guest where

1. at the time of the damage or loss, sleeping accommodation had been engaged for the guest;
2. the damage or loss occurred during the period commencing with the acceptance of the guest into the hotel and ending with his departure therefrom at the end of his stay.

(2) A proprietor is not liable-

1. to make good to a guest any damage to or loss, of, nor shall he have any lien on-

• any motor vehicle or any property left in it, or
• any live animal or its harness or other equipment;

1. where the damage to or loss of the property referred to in subsection (1) is due to-

• the default, neglect or willful act of the guest or a person accompanying or visiting him or in his employment;
• an act of God; or
• an act of war by the enemies of Her Majesty or to civil commotion.

(1) Subject to subsection (2); the liability of proprietor referred to in section 6 to, any one guest shall not exceed five hundred dollars in respect of any one article or one thousand dollars in the aggregate.

(2) The limitation on the liability of a proprietor provided by subsection (1) does not apply-

1. where the property was stolen, lost or damaged through the default, neglect or, willful act of the proprietor, his agent or his servant;
2. where the property was received for safe custody in accordance with section 5, in which case the proprietor's liability to a guest in respect of that property shall, not exceed its value as declared by the depositor at the time it was received for safe custody;
3. where at the time of the acceptance of the guest into the hotel-

• the property was tendered for safe custody in accordance with section 5 and the proprietor, his agent or servant refused to receive it for reasons other than those specified in that section, or

• the guest or a person acting in his behalf was unable, due to the default of the proprietor or that of his servant, to tender the property for safe custody in accordance with section 5;

4. unless at the time when the property was, brought to the hotel a copy of the notice set out in the Schedule printed in plain type was conspicuously displayed in a place at or near the reception desk, or at or near the main entrance, to the hotel, or in the bedroom allocated to the guest, so that it may easily be read by the guest.

(1) Subject to paragraph (a) of, section 6(2), a proprietor in the exercise of a lien, may seize and detain the hotel any property brought to the hotel by a guest who is or becomes indebted to the proprietor for food, drink or accommodation or other services or facilities provided by the proprietor for the guest; and the proprietor may in addition to any other remedy, sell such property by public auction.

(2) The right to sell under subsection (1) shall not be exercised unless-

1. the property, other than perishable property has remained in the safe custody of the proprietor for, a period of at least six weeks;
2. the guest has not satisfied his debt;
3. the proprietor

• in the case of any perishable property, as soon. as practicable prior to the sale, or

• in the case of any other property, at least one month prior to the sale, causes to be published in a newspaper circulating in Antigua and Barbuda notice of the intended sale containing a brief (ascription of the property to be sold, the time and place of the sale, and the name of the indebted guest.

(3) The proceeds of a sale under this section shall be applied in payment of the amount of the debt, and the costs of advertising and sale; and the remainder of the proceeds, any, shall be paid to the person entitled to it upon application by him; but if there is no application it shall be to the Accountant-General to be kept for one year unless calmed by the person entitled to it, then if no such person laims, it shall form part of the Consolidated Fund.

SCHEDULE

NOTICE

HOTEL PROPRIETORS ACT

LOSS OF OR DAMAGE TO GUEST'S PROPERTY

1.- Under the Hotel Proprietors Act, an hotel proprietor may in certain circumstances be liable to make good any loss or damage to a guest's property even though it was not due to any fault of the proprietor or staff of the hotel.

2.- This liability however-

1. extends only to the property of guests for whom sleeping accommodation has been engaged at the hotel;
2. is limited to five hundred dollars for any one article and a total of one thousand dollars in the case of any one guest, except in the case of property which has been deposited or tendered for safe custody;
3. does not cover motor vehicles or other vehicles or any property left in them or any live animals.

Arrangement of Sections

Section

1. Short title
2. Form of particulars
3. Forms of application and documents to accompany
4. Forms of license
5. Making of articles of the hotel equipment

FIRST SCHEDULE

(Forms of Application)

• Form 1
• Form 2

SECOND SCHEDULE

(Forms of License)

• Form 1
• Form 2

THIRD SCHEDULE

THE HOTELS AID ACT

THE HOTELS AID REGULATIONS, MADE UNDER SECTION 11 OF THE HOTELS AID ACT

S.R.O. 9/1954.

1.- These Regulations may be cited as the Hotels Aid Regulations.

2.- FORM OF PARTICULARS. The particulars contained in every form or document prescribes by these regulations shall be printed, typed or written thereon legibly in or some other indelible material.

3.- FORMS OF APPLICATION AND DOCUMENTS TO ACCOMPANY

(1) Every application for a license to construct a hotel or an extension to a hotel shall be in the form set forth as Form 1 in the First Schedule and shall be accompanied by:-

1. the certificate of incorporation of the company or an authenticated copy thereof, where a company is the applicant;
2. so required by the Cabinet, a plan or diagram drawn to a scale of not less than one inch to every hundred feet of the lands whereon the hotel or the extension to a hotel is built or proposed to be constructed;
3. if so required by the Cabinet, proper plans and drawings on a scale of not less than one-eighth of an inch to one foot, of the hotel or the extension to a hotel to be constructed, together with a specification indicating the dimensions of such hotel or extension to a hotel and the materials with which the same is proposed to be constructed and the estimated quantities of such of the materials as will have to be imported or purchased in Antigua and Barbuda for such purpose;
4. a statement of the period within which such hotel or extension to a hotel is to be constructed and opened for business; and
5. such other particulars and information as the Cabinet may from time to time by notification in the Gazette require for the purposes of these regulations.

(2) Every application for a license to equip a newly erected hotel or extension to a hotel shall be in the form set forth as Form 2 in the First Schedule, and shall be accompanied by:-

1. the certificate of incorporation of the company or an authenticated copy thereof, where a company is the applicant;
2. a full descriptive list of the articles of hotel equipment necessary to be imported or purchased in Antigua and Barbuda for the purpose of equipping the newly created hotel or extension to a hotel and the market value thereof at the port of shipment or place of purchase
3. a statement of the period within which such newly erected hotel or extension to a hotel is to be equipped and opened for business; and
4. such other particulars and information as the Cabinet may from time to, time by notification in the Gazette require for the purposes of these regulations.

4.- FORMS OF LICENCE

(1) Every license in respect of building materials shall be in the form set forth as Form 1 in the Second Schedule.

(2) Every license in respect of articles of hotel equipment shall be in the form as set forth as Form 2 in the Second Schedule.

5.- MARKING OF ARTICLES OF HOTEL EQUIPMENT

(1) Every licensee shall, in the manner provided in the Third Schedule, within one month of the date of the importation or purchase, as the case may be, legibly and permanently mark, stamp or engrave every article of hotel equipment imported or purchased under a license granted to him.

(2) Every licensee who fails to comply with the provisions of this regulation shall be liable on summary conviction to a penalty not exceeding two hundred and fifty dollars.

FORM 1

Pursuant to section 3 (1) (a) and section 4 of the Hotels Aid Act, I/We hereby make application to the Cabinet for a license to (import into Antigua and Barbuda) (purchase in Antigua and Barbuda) such building materials as are specified in the documents accompanying this application and I/We submit the following particulars:

• Surname and Christian name of. applicant or name of applicant company
• Address of the applicant or registered address of company
• Number of bedrooms in hotel
• Dated this xxxxx day of xxxxxxxxx 19xx
• Signature of applicant

FORM 2

Pursuant to section.3 (1) (b) and section 4 of the Hotels Aid Act, I/We hereby make application to the Cabinet for a license to (import into Antigua and Barbuda) (purchase in Antigua and Barbuda) such articles of hotel equipment as are specified in the documents accompanying this application and l/We submit the following particulars:

• Surname and Christian name of applicant or name of applicant company
• Address of applicant or registered address of applicant company
• Situation of hotel
• Number of bedrooms
• Dates of commencement and of completion or erection of hotel or extension thereto
• Purposes for which articles of hotel equipment are to be imported or purchased
• Dated this xxxxxx day of xxxxxxxxxxx 19xx
• Signature of applicant

Note: Strike out the words in brackets not applicable.

FORM 1

WHEREAS due application has been made to the Cabinet herein for a license under the Hotels Aid Act, by hotel proprietor (hereinafter called "the licensee"):

NOW THEREFORE, the Cabinet, under and by virtue of the powers contained in section 3 (1) (a) of the Hotels Aid Act, HEREBY GRANTS a license to the licensee with regard to a certain hotel situate at being a newly erected (hotel) (extension to a hotel): and this is to license and permit the licensee to (import into Antigua and Barbuda) (purchase in Antigua and Barbuda ) between the

(date) and the (date) for the construction of the said (hotel) (extension to a hotel) the building materials set out or describes in the Schedule hereto; and the licensee shall be entitled on hereof to (import into Antigua and Barbuda the building materials enumerated or referred to in the Schedule hereto free of all customs duties and of package tax)(be paid drawback of customs duty in accordance with section 6 of the said Act).

GRANTED at St. john's, Antigua, this XXXXXXXXX day of XXXXXXXXXXXXXXX 19XX

...................................................

Note: Strike out the words in brackets not applicable.

FORM 2

WHE REAS due application has been made to the Cabinet for a license herein under the Hotels Aid Act, by - hotel proprietor (hereinafter called "the licensee"):

NOW THEREFORE, the Cabinet, under and by virtue of the powers contained in section 3 (1) (b) of the Hotels Aid Act, HEREBY GRANTS a license to the licensee with regard to a certain newly erected (hotel) (extension to a hotel) situate at XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

AND this is to license and permit the licensee to (import into Antigua and Barbuda) (purchase in Antigua and Barbuda) between the (date) and the (date) for the equipment of the said newly erected (hotel) (extension to a hotel) the articles of hotel equipment set out or describes in the Schedule hereto; and the licensee shall be entitled on production of this license to the proper Customs Officer and subject to the terms hereof to (import in Antigua and Barbuda the articles of hotel equipment enumerated or referred to in the Schedule hereto free of all customs duties and of package tax) (be paid drawback of customs duty in accordance with section 6 of the said Act).

GRANTED at St. john's, Antigua, this XXXXXXX day of XXXXXXXXXXXXXX 19XX

................................................

Note: Strike out the words in brackets not applicable.

THIRD SCHEDULE

Every article shall be marked in such a manner so that the mark may be easily recognized, and the mark shall consist of the following letters arranged in the following order: -

O.

H.

A.

THE HOTELS AID ACT

Free entry of building materials and equipment: Every licensee shall be entitled upon the production of his license to the proper custom officer to import in to Antigua and Barbuda in accordance with the terms thereof free of all customs duties and of package tax such building materials or articles of hotel equipment as may be therein specified.

1.- Every licensee who satisfies the Comptroller of Custom-

1. That any building materials or any articles of hotel equipment specified in his license were purchased by him in Antigua and Barbuda, and
2. That customs duties and package tax were paid upon the importation into Antigua and Barbuda of such building material or articles of hotel equipment of the total value of not less than four hundred and eighty dollars; and
3. As to the amount of the customs duties or package tax so paid, shall be entitled to be paid an amount equivalent to the amount of drawback which would have been payable under section 18 of the Customs Duties Act, in relation to the grating of drawback of costumes duties if such building materials or articles of hotel equipment had been exported total value of not less than four hundred and eighty dollars; and from Anti a and Barbuda, and to be refunded the package tax paid upon the importation of such building materials or articles of hotel equipment:

Provided that the provisions of the said section 18. restricting the payment of drawback to cases where the goods iii respect of which the payment is made are exported within a specified period shall not apply to any payment under this section.

2.- Every licensee who satisfies the Comptroller of Customs-

1. that any building materials or any articles of hotel equipment specified in his license were purchased by him in Antigua and Barbuda; and
2. that customs duties and package tax were paid upon the importation into Antigua and Barbuda of such building materials or articles of hotel equipment of the total value of not less than four hundred and eighty dollars; and
3. that he is unable to ascertain the amount of the customs duties or package tax so paid, shall be entitled to be paid such sum as the Comptroller of Customs may think fit, so however, that no payment under this subsection shall, in the case of building materials or articles of hotel equipment which are rated goods within the meaning of the Customs Duties Act, exceed the lowest preferential rate that has been in force for that description of goods at any time during the two years next preceding the date of purchase by the licensee and, in the case of any building materials or articles of hotel equipment liable under the said Act to and ad valorem rate that has been in force for that description of goods for a period of two years prior to the date of supply was fifteen per centum and pro rata where other ad valorem rates have been in force during such period, together with such additional sum (if any) as the Comptroller of Customs may think fairly represents the amount of package tax paid upon such goods upon their importation into Antigua and Barbuda.

Arrangement of Sections

Section

1. Short title
2. Interpretation
3. Imposition of tax
4. Rates of tax.
5. Proprietors to supply certain information
6. Register of guests
7. Hotel-bills record
8. Appointment and duty of Inspectors of hotels
9. Powers of the Inspectors and Commissioner
10. Additional charge on overdue tax
11. Charge and collection of tax
12. Sale of goods and chattels seized
13. Demanding or receiving from guest an offence.
14. Penalty.
15. Proof of entries in registers
16. Cabinet may refund or remit tax

FIRST SCHEDULE

SECOND SCHEDULE

1.- This Act may, be cited as the Hotels Tax Act

2.- In this Act unless the context otherwise requires-

"Commissioner" means the officer for the time being performing the duties of Commissioner of Inland Revenue and includes any officer duty authorized to act on his behalf;

"guest" means any person residing in. a hotel or guesthouse in consideration of the payment of a sum of money for such residence, but shall not include a guest, who is a permanent resident:

Provided that notwithstanding anything to the contrary in this Act, for the purposes of section 13(1) (b) and the proviso thereto and item (b) of the First Schedule, any reference therein either direct or by implication to a guest shall be construed as including a reference to any person who incurs expenditure for any service specified in item (ii) of the definition of "hotel-bill" in this section whether or not such a person resides in or is a permanent resident in the hotel or guest-house;

"guest-house" means a hotel containing more than four but less than ten bedrooms;

"hotel" means any building or group of buildings within Antigua and Barbuda (including all structures within the cartilage thereof) which are occupied together for the purpose of accommodating guests therein, and which contains, or is intended to contain when completed, not less than ten bedrooms;

"hotel-bill" includes any account, bill invoice receipt or other document for or in relation to any- sum of money paid or due and payable to a proprietor for or -in connection with or in consequence of-

1. accommodation of a guest at the hotel or guesthouse of that proprietor; or
2. food, drink and other services supplied by, through or on behalf of the hotel or guest-house of that proprietor; or
3. U both such accommodation and food, drink and other services,

but does not include in such account, bill, invoice, receipt or other document for or relating to any sum of money paid or due and payable as aforesaid for or respect of telephone bills, service charges, telegrams, or the hire of taxis or other motor vehicles;

"Inspector" means an Inspector of Hotels appointed under section 8 of this Act;

"Minister" means the Minister to whom responsibility for Tourism is assigned;

"night" means the interval between eight o'clock in the evening of any day and five o'clock in the morning of the next succeeding day;

"permanent resident" means-

(a) a person who during the period of twelve months immediately preceding the date of coming into operation of this Act, has been a guest in a hotel or guest-house or partly in a hotel and partly in a guest-house for a period of at least sixty consecutive days;

( b) a person who, during any period of twelve months commencing on the first day of January in any year after the date of coming into operation of this Act, has been a guest in a hotel and partly a guest-house, for al least sixty consecutive days during such period of twelve months

"proprietor" means the owner of a hotel or guest-house or any person on whose behalf guests are admitted to a hotel or guest-house; and where a proprietor is absent from Antigua and Barbuda, or is a body corporate includes the person for the time being responsible for the management of the hotel, or guest-house, as the case may be.

(1) A tax, to be called hotel tax, shall be charged and collected, subject to and in accordance with the provisions of this Act-

1. in respect of catch guest accommodated during a night or part of a night, in a hotel or guest-house; and
2. upon cache hotel-bill: Provided that any portion of the tax that is charged upon a hotel- bill pursuant to paragraph (b) of this subsection and to item (b) of the First Schedule hereto shall be paid by the guest to whom that hotel-bill relates and shall be collected from that guest by the proprietor.

(2) The proprietor of every hotel or guest-house shall account for the tax charged by this Act in such manner as the Commissioner may from time to time direct. Such tax shall be payable by the proprietor accountable for the same, and shall be paid into the general revenue on such day in catch week as the Commissioner may from time to time direct.

(3) Directions given by the Commissioner in accordance with the provisions of the preceding subsection shall be in writing under his hand and shall be served on the proprietor of every hotel or guest-house, as the case may be.

(4) Any proprietor who willfully omits or neglects to collect the tax pursuant to subsection (1) of this section, or to account for the tax in the manner directed by the Commissioner; or any person who makes any false entry in accounting for the tax imposed by this Act with intent to evade the payment by himself, or by any other person, of the said tax, shall be guilty of an offence against this Act.

(1) The amount of tax to be charged and collected under the provisions of this Act shall be in accordance with the rates set out in the First Schedule hereto.

(2) For the purposes of this section hotels and guest-houses shall be grouped in such manner, not exceeding four groups as the Minister may by Order published in the Gazette specify and such Order may from time to time by similar Order be amended by the Minister by adding thereto or deleting therefrom any such group and specifying in the Order the date upon or from which such amendment shall have effect.

5.-

(1) The Commissioner may at any time by notice published in the Gazette require all or any proprietors in Antigua and Barbuda to furnish him, in writing, by a date to be specified in such notice (which date shall not be less than seven days after the date of publication of such notice), with the following information in relation to their hotels and guest-houses-

• the name and address thereof;
• the maximum number of guests that may be accommodated therein during the night; and
• the name of the person responsible for the management thereof.

(2) Every notice published in accordance with the preceding subsection shall also be published in three consecutive issues of a daily newspaper circulating in Antigua and Barbuda. The date of the first such issues shall be the same as the date of the issue of the Gazette in which the said notice is published.

(3) Every proprietor shall without delay furnish to the, Commissioner in writing such information with respect to the ownership and management of his hotel or guest-house as the Commissioner may from time to time require.

.(4) Any person who begins to use, or ceases to use, any premises for the purposes of conducting a hotel or guest-house therein shall forthwith notify the Commissioner in writing of the fact; and where any person begins to use any premises as aforesaid he shall forthwith furnish the Commissioner with the information required to be furnished under the provisions of subsection (1) of this section.

(5) The proprietor of every hotel or guest-house shall forthwith notify the Commissioner in writing of-

1. any change which occurs in the name or address thereof;
2. any change in the maximum number of guests that can be accommodated therein during the night; and
3. any other change in the management or ownership thereof which would affect the accuracy of any information already supplied in accordance with the foregoing provisions of this section.

(6) Any person who falls to furnish the Commissioner with any information required to be supplied in accordance with the foregoing provisions of this section or otherwise fails to comply with the foregoing provisions of this section, shall be guilty of an offence against this Act.

(1) Every proprietor shall keep, or cause to be kept a register of guests (hereinafter referred to as the register) which shall be made of such durable material and shall be in such form as the Commissioner may from time to time approve; the approval of the Commissioner shall be signified in writing under his hand and affixed to the register.

(2) The register shall contain-

1. the names, permanent address, and qualification (or occupation) of each guest;
2. the date, and time of admission of each guest;
3. the date and time when any person ceases to be a guest; and
4. such other particulars as the Commissioner may from time to time require.

(3) Every proprietor, or the person for the time being appointed by the proprietor for the purpose of keeping the register, shall require each guest to sign the register in the appropriate column-

1. at the time of his admission as a guest; and
2. immediately before he ceases to be a guest.

(4) Every guest shall sign the register in accordance with the provisions of the preceding subsection unless he is unable to sign his name, in which event the proprietor shall make an entry to that effect in the register.

(5) Any person who fails to comply with the foregoing provisions of this section, or willfully makes any false entry in a register, with intent to evade payment by himself or by any other person of the tax imposed by this Act shall be guilty of an offence against this Act.

(1) Every proprietor shall keep, or cause to be kept, in durable form a record of all hotel-bills (hereinafter referred to as the hotel-bills record) which record shall contain either the originals of such hotel-bills or photographs thereof or such other copies thereof as may be approved by the Commissioner. A hotel-bills record shall be in such form as the Commissioner may from time to time approve.

(2) Any person who fails to comply with the provisions of this section, or willfully makes any false entry in a hotel-bills record, with intent to evade payment by himself or by any other person of the tax imposed by this Act, shall be guilty of an offence against this Act.

(1) The Commissioner may, in his discretion, appoint one or more officers of the Inland Revenue Department to inspect hotels and guest-houses in Antigua and Barbuda and every such officer shall be known as an Inspector of Hotels. It shall be the duty of every Inspector to visit such hotels and guest-houses in Antigua and Barbuda as the Commissioner may direct, for the purpose of examining the registers and hotel-bills record thereof and ascertaining the number of guests from time to time resident therein.

2) Every Inspector shall at least once in each month, and at such other times as the Commissioner may direct, make a report to the Commissioner on all hotels and guest-houses visited by him, and such reports shall be in such form and contain such particulars as the Commissioner may require.

(3) Every Inspector shall be furnished with a certificate of appointment issued under the hand of the Commissioner and shall produce the same to any proprietor when required so to do.

(1) An Inspector may at any reasonable time of the day or night enter upon, the premises of any hotel or guest-house for the purpose of examining the register and hotel-bills record thereof, and may require the proprietor to produce the register and hotel-bills record for his examination. An Inspector may remain on such premises as long as may be necessary for the purpose of ascertaining the number of guests residing therein or of examining the hotel-bills record thereof.

(2) An Inspector, upon the production of his certificate of appointment to any person in a hotel or guest-house whom he has reasonable cause to suspect to be a guest therein, may require such person to give him his name and address; and any such person who willfully omits or refuses to give the Inspector his correct name and address shall be guilty of an offence against this Act.

(3) If an Inspector, when requested by a proprietor to produce his certificate of appointment in accordance with the provisions of subsection (3) of section 8 of this Act fails to do so, the proprietor may refuse to permit him to remain on his premises, or to examine his register.

(4) Subject to the provisions of the preceding subsection, any proprietor who fails to produce his register or hotel-bills record for examination when required to do so by an Inspector shall be guilty of an offence against this Act, and any person who willfully hinders or obstructs an Inspector in the performance of his duties shall be guilty of an offence against this Act.

(5) The Commissioner may at all reasonable hours in the daytime enter upon the premises of any hotel or guest-house for the purpose of examining the register and hotel-bills record thereof, and may require the proprietor thereof to produce the register and hotel-bills record for his examination; and any proprietor who fails to produce his register or hotel-bills record to the Commissioner for examination, or any person who willfully hinders or obstructs the Commissioner in the performance of his duty shall be guilty of an offence against this Act.

10.- When any tax imposed by this Act, or any part thereof, remains unpaid at the expiration of the fifth day after the date on which it should have been paid into general revenue, the proprietor liable to pay the same, shall be charged an additional sum equivalent to ten per centum of the amount of the tax so remaining unpaid, and such sum shall be collectable in the same manner as if it were part of the said tax then due and owing.

(1)Any such tax due and owing under the provisions of this Act shall be a first charge on the goods and chattels of the proprietor accountable for the same, and shall take priority over any other charge or debt due by specialty or otherwise, except debts due to the Crown; and such tax shall be levied and collected by the seizure and sale of the goods and chattels of the proprietor accountable for the same.

(2) The Commissioner may at any time prepare, date and sign a list (hereinafter called a defaulters list) which shall Second Schedule be in the form set out in the Second Schedule to this Act and shall contain-

1. the name and address of the proprietors by whom such tax is due and owing; and the name of the hotels and guest-houses of such proprietors;
2. the amount of tax due and owing by each proprietor; together with any additional amount that may have been charged thereon and shall deliver the same to the Provost Marshal for collection of the respective amounts specified therein.

(3) As soon as may be after the Provost Marshal has received a defaulters list he shall proceed to levy and collect the several amounts shown therein in the manner prescribed in subsection (1) of this section.

(1) Where any goods and chattels have been seized as aforesaid, they shall be marked, and deposited in some place, or left in the possession of some fit person as the Provost Marshal shall direct.

(2) If the tax in respect of which the levy was made and all expenses incidental to such levy are not sooner paid, all goods and chattels seized as aforesaid shall be sold at public auction, at such place and during such hours as the Provost Marshal shall determine:

Provided that no such sale shall take place within five days of the seizure of such goods and chattels, unless the same are in the opinion of the Provost Marshal of a perishable nature, or the owner of such goods and chattels has requested, their earlier sale.

(3) The date, time and place of sale of all goods and chattels seized under thc provisions of this Act shall be advertised prior to the date of sale thereof in at least one issue of the Gazette and of a daily newspaper circulating in Antigua and Barbuda unless such goods and chattels are being sold by the Provost Marshal before the expiry of the period of five days referred to in the preceding subsection.

(4) The proceeds of sale of such goods and chattels shall be applied first towards the payment of the expenses incidental to their seizure and sale and the payment of the tax in respect of which they were seized, and the balance, if any, of the proceeds of such sale shall be paid to the proprietor from whom the said goods and chattels were seized upon application being made for the same.

(5) The Provost Marshal shall forward to the Commissioner at lest once in each month a return of all taxes collected by him under the Provisions of this Act, and shall pay all such taxes into the general revenue as soon as may be after the collection thereof.

13.- Any proprietor or other person who-

1. demands from any guest payment of the tax charge in accordance with the provisions of paragraph (a) of subsection (1) of section 3 and of item (a) of the First Schedule; or
2. receives payment from any guest of any amount tendered in respect of the payment of the whole or any part of the tax mentioned in paragraph (a), whether the same has been demanded or not, shall be guilty of an offence.

14.- Any person found guilty of an offence against this Act shall on summary conviction be liable to a fine not exceeding three thousand dollars or to imprisonment for a term not exceeding six months.

15.- A copy of, or extract from, entries in a register, upon which is endorsed a certificate purporting to be signed by the Commissioner, stating that such copy or extract is a true copy or extract from a particular register shall in all legal proceedings be admitted as prima facie evidence of the entries in the said register until the contrary is proved.

16.- The Cabinet, if satisfied that it is just and equitable to do so, may refund or remit, as the case may be, the whole or any part of the tax paid or payable under the provisions of this Act, together with any additional charge imposed thereon and any expenses of levy incurred in connection with the collection of such tax.

FIRST SCHEDULE

(a) For each guest residing for a night or part of a night in an hotel or a guest-house as specified by Order made under section 4 to be within-

(b) On each hotel bill -Five per centum of the sum of money in respect of every item of the hotel bill.

(c) Paragraph (a) of this Schedule does not apply to a guest who is a child under the age of thirteen year and who is not accommodated at a hotel or a guest-house separately from any person accompanying that child at the hotel or guest-house, such accompanying person being also a guest at that hotel or guest-house.

SECOND SCHEDULE

Defaulters List

No. XXXXXXXXXXX of 19XX Date: XXXXXXXXXXXXX

--------------------------------------------

Commissioner of Ireland Revenue

1.- Short title. This Order may be cited as the Hotels and Guest Houses (Groups) Order.

2.- For the purposes of Section 4 of the Hotels Tax Act, the hotels and guest houses named in the Schedule are classified according to the group under which they appear.

Made this 20th day of April, 1990.

SCHEDULE

GROUP1

1. St. James' Club
2. Mill Reef Club
3. Jolly Beach
4. Ramada Renaissance (Royal Antigua)
5. Jumby Bay
6. Curtain Bluff
7. Blue Waters
8. Halcyon Cove
9. Club K
10. Marina Bay
11. Coco Point Lodge
12. Pineapple Beach Club
13. Anchorage (Divi-Divi Antigua Resort Beach)
14. Hawksbill Beach Hotel
15. Galleon Beach Hotel
16. Sand Piper Reef Hotel
17. Pillar Rock Beach Hotels and Condominiums
18. Long Bay Hotel
19. Siboney Beach Club
20. Hodges Bay Club
21. Galley Bay
22. Antigua Village

GROUP II

1. Barrymore Beach Club
2. Copper and Lumber Store
3. Dian Bay Resort
4. Falmouth Harbour Beach Apartments
5. Runaway Beach Club
6. Trade Winds Hotel and Apartments
7. Yeptons Beach Resort
8. Harbour View Apartments
9. Browns Bay Villas
10. Trafalgar Heights
11. Callaloo Beach Hotel
12. Halcyon Heights

GROUP III

1. Antigua Beachcomber
2. Admiral's Inn
3. Antigua Mill Hotel
4. Barrymore Hotel
5. Time Away Beach Apartments
6. Blue Heron
7. Heritage Hotel
8. Flamingo
9. Cortsland Hotel
10. Bougainvillea Hotel
11. The Earl's Cottage
12. Falmouth Harbour Studios
13. Stephendale Hotel
14. Joe'Mike's Hotel
15. Airport Hotel
16. Kings Court
17. Sunset View Resort
18. Marina Bay
19. At-the-Hill Hotel

GROUP IV

1. Miami Hotel

2. Montgomery Hotel
3. Corner Hotel
4. Cornwall’s Hotel

19. St. John's Motel

2. Skyline Hotel
3. Popeshead House
4. Bunderlyn's' Guest House
5. Burton's Apartments
6. Comacho's Central Motel
7. Catamaran Hotel
8. Glenville Guest-House
9. Pigottsville
10. Shell Inn
11. Silver Dollar
12. Spanish Main

It should be noted that although a Hotel is placed in a particular group if the said establishment contains rooms priced higher than the existing group; then those higher end rooms will be taxed at the appropriate group levels.

The Government of Antigua and Barbuda provides the following incentives and concessions to investors:

Lease of Crown Land for up to fifty (50) years with provision to purchase after ten (10) years. Exemption from payment of Customs Duty and Taxes on building materials and other capital items. Exemption from payment of Corporate tax on profit for up to ten (10) years.

Permission to repatriate capital, profits and dividends free of withholding taxes. No personal income tax.

Waiver of payment of 1% foreign exchange levy on monies coming into Antigua for an investment project.

Grant of work permits in respect to the employment of non-nationals, as required.

Grant of license under the Non-Belongers Land Holding Tax Regulations to own property, shares, or to own a leasehold.

Grant to permission to operate a foreign currency account with a local Commercial bank.

Government would provide assistance in bringing utilities to sight, including road, water, telephone, electricity.

Hotels of 250 rooms or more may also apply for a Casino license.

The primary point of entry for arrivals to Antigua and Barbuda is the V.C. Bird International Airport, which is located about four miles north-east of St. John’s, the capital. There are direct flights to Antigua from New York (JFK), Miami, Toronto, London, Paris, Zurich and Frankfurt. Direct flights from Philadelphia, Atlanta and Chicago are to be added in 1997.

The airlines serving Antigua at present are BWIA, LIAT, American, Continental, Air Canada, BA, Air France, Condor.

By Sea:

Antigua and Barbuda has a modern Deep Water Harbour with a depth of 35 ft. With berthing facilities for three large cruise ships.

A modern cruise berthing and shopping facility was also recently constructed in the inner Harbour in downtown St. John’s known as Heritage Quay. It accommodates two large cruise ships at any one time.

International Direct Dial Telephone System with all required features. Facsimile and Telex facilities. Two TV and four Radio Stations. Cable Television Service.

Total supply is 3.0 M gals per day with installed capacity of 3.0 M gals, including a desalting plant (2.0 M gals per day). Commercial rate is EC $50.00 per 1000 gal.

Installed capacity – 30 Megawatts: 220/110 Volts Ac: 60 Cycles. Approximately: EC$0.45 for 1^st. 300 units: EC$0.38 after 1^st. 300 units.

Labour force:

• Male: 15,665
• Female: 13,005

TOTAL: 28,670

Rate of unemployment: 7%

EC$150.00 per week