Concessions

The Small Business Development Act allows for concessions that could save small business owners a great deal of capital that they can then seek to expand or reinvest into their businesses.

The Small Business Development Act 2007 was passed to provide incentives in the form of concessions, technical assistance and credit guarantee to aid in the development of small businesses in Antigua and Barbuda. Let’s take a closer look at concessions available under the Act.

Please keep in mind that the processes must be completed in conjunction with an Enterprise Development Department representative.

What is a concession?

A concession, under the Small Business Development Act 2007, is a reduction of or exemption from a specific duty or tax payable by a business to the Government for the purchase, sale, or transfer of goods, services, or property, or due to normal daily business operations.

Incentives & Concessions

  • Exemption from or reduction of payment of duty on the importation or purchase of raw materials, building materials, furniture, furnishings, fixtures, fittings, appliances, tools, spare parts, plant, machinery and equipment for use in the construction and operation of the business;
  • Exemption from or reduction of payment of duty on the importation or purchase of vehicles for use in the operation of the business;
  • Reduction of property tax of up to 75% in respect of land and buildings used in the operation of the business;
  • Exemption from or reduction of payment of income tax on the income of the business for a period not exceeding five years. After the end of the mentioned five-year period, a reduction of up to 10% of income tax payable on the income of the business for a specified period;
  • Exemption from or reduction of payment of withholding tax for a period of up to three years from the grant of the concession;
  • Exemption from or reduction of stamp duty on documents required for loans for the business or security for those loans;
  • Reduction of stamp duty payable under the Non-Citizens Land Holdings Regulation Act, and of stamp duty payable by the purchaser/ transferee, and by the vendor/ transferor of up to 75% in respect of land and buildings other than residential premises used in the operation of the business.
  • The Government will, as far as is feasible, reserve at least 25% of the procurement of its goods and services for small businesses registered under the Act.

The reduction amount and time period for each concession will be determined by the Minister.

Incentives and concessions apply to businesses registered as approved small businesses under the Small Business Development Act 

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