ANGUILLA Law and Practice Contributed by: Nina Rodriguez, Webster LP
7.4 Management of Schedule-Related Risk In the schedule, tasks are assigned by creat - ing a work/task schedule and creating a chart to measure progress. 7.5 Additional Forms of Security to Guarantee a Contractor’s Performance Large investment projects would require perfor - mance bonds. As most construction projects are conducted on a task-related staged payment basis with the funds being provided by the owner, whether directly or by loan, additional performance secu - rity is not required. 7.6 Liens or Encumbrances in the Event of Non-Payment Contractors and/or designers are not permitted to lien or otherwise encumber a property in the event of non-payment; a claim is required to be filed. 7.7 Requirements Before Use or Inhabitation Once the contractor issues a Certificate of Practical Completion, or a similar document, arrangements will be made for the Building Inspector to inspect the property to confirm that it is completed and fit for habitation or use for its intended purpose. An Occupancy Certificate is issued after inspection. 8. Tax 8.1 VAT and Sales Tax Gains from disposition of real property are not taxed.
8.2 Mitigation of Tax Liability There are no methods commonly used to miti - gate transfer, recordation, stamp or other similar tax liability on acquisitions of large real estate portfolios. 8.3 Municipal Taxes Property taxes are payable by the proprietor of developed property whether or not it is occu - pied. There are no business rates and no exemp - tions. Property taxes are not charged on undeveloped property (bare land). 8.4 Income Tax Withholding for Foreign Investors There is no specific income tax withholding in Anguilla. However, under the Goods and Ser - vices Tax Act 2022, where a taxable person is providing goods or services to the government and is required to charge GST on those goods or services, the government may withhold such taxes that would be charged by the taxable per - son. Effective 1 July 2022, goods and services tax becomes payable on short-term accommoda - tion (rental) for a period not exceeding 182 days at a rate of 13%. This tax is collected by the proprietor from the occupier for payment to the Inland Revenue Department. Gains from dispo - sition of real property are not taxed. Exemption applies, upon the implementation of GST, to: • a supply of: (a) a lease, licence, hire rental or other form of supply of accommodation, to the extent that it is a supply of the right to
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