F01 Corporation Income Tax Guide (2011

Government of
Antigua and Barbuda
Inland Revenue Department
F01 Corporation – Income Tax Guide 2011

F01 CORPORATION INCOME TAX GUIDE

(2011)

Before You Start ........................................................................ 2 Line 55 ............................................................................. 4

1. Who has to file a F01 return? ....................................... 2 Line 60 ............................................................................. 4
Resident corporations ....................................................... 2 Line 65……………………………………………………..3
Non-resident corporations ................................................ 2 Line 70……………………………………………………..3
2. In what format can you file your return? ...................... 2 Schedule A and A2………………………………………………..3
3. When do you have to file your return? ......................... 2 Line 100 ........................................................................... 4
4. Where do you have to file your return? ........................ 3 Line 125 ........................................................................... 5
5. When do corporations pay income tax? ........................ 3 Line 150……………………………………………………4
6. Penalties ..................................................................... 3 Line 200……………...…………………………………….4
7. What happens once you have filed your return?............ 3 Line 220……………………………………………………4
8. When can we reassess your return? .............................. 3 Line 330……………………………………………………4
Reassessment period ........................................................ 3 Line 340……………………………………………………4
9. What should you do if you disagree?............................ 3 Schedule B………………………………………………………...4
10. Books and records ....................................................... 2 Certification................................................................................ 5
Part 1: Taxpayer Identification – page 1 of the F01 return............ 4 Attachments................................................................................ 5
11. Identification............................................................... 4 Financial Statements.......................................................... 5
Part 2: Income Declaration – page 1 of the F01 return ................. 4 Appendices ....................................................................... 4
Line 1 .............................................................................. 4 Appendix 1: Work Sheet for Insurance Company……… …4
Line 5 .............................................................................. 4 Line 500-600…………………………………………..…4-5
Line 10 ............................................................................ 4 General deductions from Income for any insurance
Line 15 ............................................................................ 4 company. .......................................................................... 6
Line 20 ............................................................................ 4 Specific deductions from Income for insurance companies . 6
Line 25 ............................................................................ 4 Appendix B2: Worksheet for Withholding Tax (Payment to
Line 30 ............................................................................ 4 non-residents) ................................................................... 5
Line 35 ............................................................................ 3 Line 700-800………………………………………...……..6
Line 40 ............................................................................ 3 Do you need more information?......................................................6
Line 45 ............................................................................ 3
Line 50 ............................................................................ 4

Before You Start 2. In what format can you file your return?
You can use only ONE format to file a corporation income tax
return. Therefore, there is personalised pre-printed return
1. Who has to file a F01 return? generated by Inland Revenue Department for the taxable year. The
F01 return form can also be printed from the government website
Resident corporations and you can fill in the tax account #, the Tax period, the
All corporations, non-profit organizations, co-operations and all assessment period date and the complete name and address of your
those companies that are tax-exempt have to file a F01 return for company.
every taxation year, even if there is no tax payable. The only
exception of this rule is for companies that have declared an The F01 Corporation Income Tax Return has 1 page which is
inactivity period for the whole taxation year. developed from schedules and appendices which must be attached
to it.
Those companies that have declared an inactivity period
throughout the taxable year have to file a F01 return for the portion 3. When do you have to file your return?
of the taxation year during which they were active.
Be sure to file your return within 3 months of the end of each
taxation year. The taxation year of a corporation is its fiscal period.
Non-resident corporations
A non-resident company may be subject to corporation income tax When the corporation’s taxation year ends on the last day of a
and must file a return if, at any time in the year: one of the month, file the return by the last day of the third month after the
following situations applies: end of the taxation year.
§ it carried on business in Antigua and Barbuda;
§ it had gains or profits from any trade, business, When the last day of the taxation year is not the last day of a
profession, vocation or calling; month, make sure to file the return by the same day minus one
§ it granted any employment allowance in day of the third month after the end of the taxation year.
money or otherwise;
§ it is subject to tax under section 22, subsection Examples
2 and 3; Taxation year-end Filing deadline

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F01 Corporation – Income Tax Guide 2011

December 31 March 31 A corporation can also be charged penalties for late or incomplete
June 30 September 30 payments. The penalty is 20% of the unpaid tax, plus 1% for each
November 30 February 28 complete month that the balance remains outstanding.
October 23 January 22

When the F01 filing deadline falls on a Saturday, Sunday, or 7. What happens once you have filed your
statutory holiday, we will consider the return filed on time if you return?
deliver or mail it on the first working day after the filing deadline.
After we receive your return, we give it to a Data Entry Clerk for
If you hand deliver the return to the Inland Revenue Department, capturing and further processing.
we will date-stamp it and consider it filed on that day.
When we assess the return, we mail the corporation a Notice of
If you either mail the return or use an equivalent delivery service, Assessment and, if necessary, with an explanation of any changes
we consider the date of the postmark when determining if the we made to the return.
return was filed on time.
As soon as you receive the Notice of Assessment, compare it to
your copy of the corporation’s return. Contact the Inland Revenue
Penalties do apply if you file the return late. See item 6 for details.
Department if you need us to clarify or explain any part of the
assessment.
4. Where do you have to file your return?
You file your return to the Inland Revenue Department. The If you would like us to release details about F01 return to an
Inland Revenue Department is situated at: independent representative, such as an accountant, send us a signed
Newgate Street, letter of authorisation specifying the taxation year and the person
St. John’s or people authorised to receive the information. To cancel a
Antigua. previously given authorisation, notify us in writing immediately.
You have to submit a separate authorisation each time you give or
cancel a third party authorisation. In the letter in can ask that this
5. When do corporations pay income tax? authorisation not only apply to prior taxation years, but also to the
Corporations should pay income tax in monthly instalments based year after the one for which the letter is dated.
on the amount of taxes assessed the previous year.
8. When can we reassess your return?
The balance of tax the corporation owes for a taxation year is due
within three months of the end of that taxation year. Within a six-year period, we can reassess your return or make
additional assessments of tax, interest, or penalties.
Interest and Penalties apply to late payment. To be on time, you
have to make instalment payments on or before the due date either Reassessment period
by mailing a cheque payable to the Commissioner of Inland We can usually reassess a return for a taxation year within 6 (six)
Revenue., or by paying directly to the cashier in the Inland years of the expiration of the taxation year. . See section 57, of the
Revenue Department. Income Tax Act.
If you do not have a personalised remittance form, call the Inland
Revenue Department at 462-4142/3 or 562-0410/2 9. What should you do if you disagree?
You can make a formal objection within thirty days if you disagree
Keep in mind that we consider the payment to have been made on with the amount of tax, interest, or penalties we have assessed or
the day we receive it, and not on the day you mail it. reassessed; stating the basis for the objection. See section 56,
subsections 1, 2, 3 and 4 and also section 59 of the Income Tax
Instalment payments are due on the last day of every complete Act. If making objections under any other sections please state
month of a corporation’s taxation year. The first payment is due the relevant section of the Income Tax Act.
one month minus a day from the starting date of the corporation’s
taxation year. The rest of the payments are due on the same day of 10. Books and records
each month that follows.
You have to keep the enterprise’s books and records in case we
The balance of tax payable is due three months after the end of the need to verify the income or loss you reported on the return.
taxation year.
Keep these documents, including related accounts and vouchers,
for at least 6 (six) years from the end of the last taxation year to
6. Penalties which they relate.
If you file your return late, a penalty of $500.00 or 5% of the tax
due (whichever is greater) applies. Keep all receipts and documents that you do not have to file with
the return in an orderly manner, in case we need to see them to
support a claim, or in case we select the return for further review or
If you need an extension for filing a return because of audit.
extraordinary circumstances, send us a letter explaining why it was
impossible for you to file the return or make the payment on time. All books and accounts must be kept in the English language.

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F01 Corporation – Income Tax Guide 2011

Part 1: Taxpayer Identification – page 1 Line 25

On line 25, enter the relief that your company is credited under any
of the F01 return double taxation agreements other than CARICOM only if the tax
amount on net chargeable income is positive (line 20).
11. Identification
Line 30
Ensure that the tax account number , the tax period, the This represents any overpayments you made in previous years that
assessment period date and the complete name and address of would be credited to the current year’s tax liability.
your company is correct if this form is generated by the IRD for .
your company. If the form is printed from the IRD website make
sure to be accurate with the information in these slots.
Line 35 and Line 40
On line 35, report all advance tax payments you made for the tax
year. On line 40, report the instalment payments you made for the
Be sure to validate Part 1 of your return, so we can properly taxation year. Keep in mind that if there is a discrepancy between
identify the enterprise and keep up-to-date information in the the amount reported on the return and the amount in the instalment
system about the enterprise to enable us to process the return more or advance tax account, we will use the amount in your instalment
quickly. and advance tax account for the taxation year being assessed when
we process the return.
If most of the information is not correct or recently has been
modified it is important that you notify us as soon as possible of
any changes in the name of the enterprise, head office address, Line 45
mailing address.
On line 45, enter the outstanding tax to pay. To determine this
amount, subtract lines 25, 30, 35 and 40 from line 20.
Part 2: Income Declaration – F01 return
If the amount on line 45 is negative, it means that you are entitled
Line 1 to a credit. This overpayment will be first applied against other tax
liabilities (such as an expected debit from a reassessment) or it will
On line 001, enter the amount of the chargeable income that be transferred to the next taxation year.
applies after schedule (A) has been completed.

Line 50
An enterprise may not always have chargeable income to report on
line 1. Instead, it may have incurred a loss. If the amount is a loss, A corporation may have made payment to Non-Residents. In such
transfer it to line 10 and remember to show it in brackets on line a case, a withholding tax needs to be paid as specified by Section
1and line 10. 39 and 40 of the Act. Use Appendix B2 to calculate the amount of
withholding tax and enter this amount on line 50.

Line 5 Line 55
On line 005, enter the amount of any losses to be utilized in the If the filing of the tax return declaration is done after the due date,
current year after completing schedule (D). then you may pay the late filing fee. In such a case, enter the
amount on this line.
Line 10
Line 60
On line 10, enter the net chargeable income or loss for income tax
purposes. This amount is the result of line 1 minus line 5. On line 60, enter the amount of tax payable. This is line 45 plus
line 50 plus line 55.
If the amount is a loss, remember to show it in brackets.
Line 65
Line 15 On line 65, enter the amount of tax paid on filing. Prepare the
cheque made payable to the Commissioner of Inland
On line 15, enter the applicable tax rate on net chargeable income Revenue, and attach it to the return.
applicable to your company according to section 32 of the Income
tax Act cap 212. Line 70
This would represent any balance owing or credit to be carried
Line 20 forward for the next year after subtracting line 65 from line 60.
On line 20, enter the tax to pay on net chargeable income. To
calculate this amount multiply line 10 times line 15.
If the enterprise has incurred a loss instead of a net income and the
amount on line 10 is negative, enter zero on line 20. SCHEDULE (A) and (A2)
Schedule (A2) applies to Insurance companies only.
All other companies are to use schedule (A).

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F01 Corporation – Income Tax Guide 2011

Line 100 be considered as a contact person and will be responsible for

Complete line 100 only if you are an insurance company. Using answering queries related to this return.
Appendix 1, transfer the amount in line 510 to line 100 on
Schedule A2, otherwise transfer the amount in line 560 to line 100
on Schedule A2.
Attachments
The following section describes the various schedules and
documents you have to attach to your return and appendices to
Line 125 complete.
Complete line 125 only if you are an insurance company. Using
§ SCHEDULE A OR
Appendix 1 calculate the deductions your company is entitled to
§ SCHEDULE A2 IF YOU ARE AN INSURANCE
as an insurance company. Transfer the amount in line 580 to
COMPANY and Appendix 1
Schedule A2 line 125 if you are only a Life Insurance Company.
§ SCHEDULE B and Appendix B2
Otherwise transfer the amount in line 600 to line 125 Schedule A2.
§ SCHEDULE C1 and C2 if necessary
§ Schedule D if necessary
Line 150
Complete line 150 only if you are an insurance company. This
amount will be line 100 minus 125 which would represent the net Financial Statements
income of an insurance company for tax purposes.
Each corporation should include complete audited financial
Line 200 statement information for the taxation year of the return. This
On line 200, enter the net income before taxation as per financial includes:
statements. If the enterprise has incurred a loss instead of a net § Balance Sheet Information;
profit remember to show this amount in brackets. § Income Statement Information;
§ Cash Flow Statement;
§ Any notes to the financial statement and the accountant’s
Line 220 report.
This line represents all expenses in the financial statements that are When preparing the first return for a new corporation, make sure to
not allowed for tax purposes according to the Income Tax Act Cap attach all of the following documents:
212. § Opening Balance Sheet Information;
§ copies of all relevant agreement or the full details on
shares;
Line 330 § The closing balance sheet of the corporation if the new
This line represents all types of income exempted from tax and corporation acquired the assets or business, or assumed
other allowances granted by the Income Tax Act Cap 212. the liabilities of a former proprietorship, partnership, or
corporation.
If the corporation has been inactive during the taxation year and
Line 340 has received a return to fill in, send in the return with a letter
This line represents the reconciliation of net profit in the financial stating the reason for and duration of inactivity period.
statements to chargeable income after applying adjustments
according to tax laws. If the amount is negative be sure to put it in
brackets. This amount must now be transferred to line (1) on the Appendices
F01.
Appendix 1 – Work Sheet for Insurance Company
SCHEDULE B Appendix B2 – Work Sheet for computing Withholding Tax.

Appendix 1: Work Sheet for Insurance Company

Schedule B refers to information that is required under item 2 of
If your enterprise is life and/or non-life insurance company, you
the Income tax (Amendment) rules which must be submitted with
have to use Appendix 1, to complete Schedule A2 before you
the return. This information refers to payments made to
complete the F01.
shareholders and directors, shareholders and directors’ relatives,
interest and rent and payments made to persons or companies not
resident in Antigua and Barbuda. Line 500
On line 500, enter the amount of income from interest and
investment income for the taxation year. Any form of investment
Certification income of the company as a whole should be allocated to the
First section - Complete the first section by giving the required Antigua branch using the following formula:
information in the appropriate spaces. Be sure that the person who Premium written of the Antigua branch divided by total
signs and dates the return is an authorised officer of the (consolidated) premiums written of the company.
corporation.
Line 505
Second section – If the person that completed the declaration is
On line 505, enter the amount of all other income from investment
representing the corporation, then fill in this section by giving the
not included on line 500.
required information in the appropriate spaces. This representative
either legal (in case of an accounting firm) or non-legal entity will

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F01 Corporation – Income Tax Guide 2011

Line 510 General deductions from Income for any insurance

On line 510, enter the amount of the total income from investment. company.
To calculate this amount, add the amount of line 500 to the amount
of line 505. Line 570
On line 570, enter the amount of the expenses related to your
Line 515 corporation in Antigua and Barbuda and a fair proportion of the
On line 515, enter the amount of the gross premiums received or expenses of the head office of the company. Attach schedule of
receivable in Antigua and Barbuda. allocations.

Line 520 The allocation of head office expenses should be calculated using
the following formula:
On line 520, enter the amount of any premiums paid or re- Premium written of the Antigua branch divided by total
insurances. (consolidated) premiums written of the company.

Line 525
On line 525, enter the amount of any premiums returned to the Line 575
insured. Enter on line 575 the amount of all commissions paid on premiums
written.
Line 530
On line 530, enter the amount of all deductions from the gross Line 580
premiums. To calculate this amount, add the amount on line 520 to On line 580, enter the total general deductions allowed for your
the amount on line 525. insurance company during the taxation year. To calculate this
amount, add the amount on line 570 to the amount on line 575.
Line 535
On line 535, enter the amount of the net premiums written. To If you are ONLY a LIFE insurance company, transfer the amount
determine this amount, subtract the amount on line 530 from the on line 580 to line 125 in Schedule A2.
amount on line 515.
Specific deductions from Income
Line 540
On line 540, enter the amount of the reserve for unexpired risks at Line 585
the percentage adopted by the company in relation to its operations Report the gross claims paid for Non Life business on this line.
as a whole for such as risks at the end of the year preceding the Do not fill in this line if you are exclusively a life insurance
year of assessment. company.

Line 545 Line 590

On line 545, enter the amount of the reserve for unexpired risks Enter on line 590 the amount of the recoveries from reinsurances
outstanding at the beginning of the year preceding the year of for Non Life business. Do not fill this line if you are exclusively a
assessment. life insurance company.

Line 550 Line 595

On line 550, enter the amount of commissions received on re- Enter the net amount of paid claims for Non Life business. To
insurance ceded. determine this amount, subtract line 590 from line 585. Do not fill
this line if you are exclusively a life insurance company.
Line 555
Line 600
On line 555, enter the income from other various sources. To
On line 600, enter the total deductions allowed for an insurance
determine this amount, subtract the amount on line 540 from the
company. To determine this, add the amount on line 580 to line
amount on line 545 and then add to the balance the amount on line
595.
550.
Transfer the result on line 600 to line 125 in Schedule A2.
Line 560
On line 560, enter the total income of your insurance company
during the taxation year. To calculate this amount, add the amount Appendix B2: Worksheet for Withholding Tax
on lines 510 and 535 to the amount on line 555. (Payment to non-residents)
Transfer the result on line 560 to line 100 in your return. If your enterprise is paying monies to non-resident, you have to
use Appendix B2, to complete some of the lines in your return.

1.1 Payment to Non-Resident (under Section 39 of the

Act)

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F01 Corporation – Income Tax Guide 2011

Line 700
On line 700, enter the amount paid to companies CARICOM’s Line 780
members On line 780, enter the amount paid to individuals Non-
CARICOM’s members
Line 705
Line 785
Withholding Tax Rate for amount paid to companies CARICOM’s Withholding Tax Rate for amount paid to individuals Non-
members (15%) CARICOM’s members (25%)

Line 710 Line 790

On line 710, enter the amount of Tax to Pay (line 700 times line 705) On line 790, enter the amount of Tax to Pay (line 780 times line 785)

Line 715
On line 715, enter the amount paid to companies Non-
Line 795
CARICOM’s members On line 795, enter the Total Tax to Pay (line 760 + line 775 + line
790)
Line 720
Withholding Tax Rate for amount paid to companies Non- 1.3 Total Amount of Tax to Pay (under Section 39 and 40 of
CARICOM’s members (25%) the Act)

Line 725 Line 800

On line 725, enter the amount of Tax to Pay (line 715 times line 720) On line 800, enter the Total Amount of Tax to Pay (line 745 +
line 795)
Line 730
On line 730, enter the amount paid to individuals Non-
CARICOM’s members

Line 735
Withholding Tax Rate for amount paid to individuals Non- Do you need more information?
CARICOM’s members (20%) This guide explains the process in completing the F01 return form.
Should you need more help after you read this guide please
Line 740 contact:
On line 740, enter the amount of Tax to Pay (line 730 times line 735)
Inland Revenue Department
Newgate Street,
Line 745 St. John’s
On line 745, enter the Total amount of Tax to Pay (line 710 + line Antigua
730 + line 740) Tel: 462-4142/3, 462-0396, 462-1357, 565-5605/6 or 562-4877
Fax: 462-3175
1.2 Payment to Non-Resident (under Section 40 of the E-mail: revenue@antigua.gov.ag
Act)

Line 750
On line 750, enter the amount paid to individuals CARICOM’s
members
Line 755
Withholding Tax Rate for amount paid to individuals CARICOM’s
members (15%)

Line 760
On line 760, enter the amount of Tax to Pay (line 750 times line
755)

Line 765
On line 765, enter the amount paid to companies Non-
CARICOM’s members

Line 770
Withholding Tax Rate for amount paid to companies Non-
CARICOM’s members (25%)

Line 775
On line 775, enter the amount of Tax to Pay (line 765 times line 770)
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