GSL / International Taxation / Dominica

Dominica tax system - taxation of Dominica companies and individuals: VAT, income tax and capital gains. Tax treaties of Costa Rica.

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Taxes of Dominica

25%
Сorporate tax
No
Capital gains tax
15%
VAT
15%/15%/15%
Withholding tax
No
Exchange control

info
Basic taxes (briefly)

Personal tax
First 30 000 XCD of taxable income are not taxed
Corporate tax (in detail)
Dominica tax resident companies pay income tax on their worldwide income. Income tax is paid at the rate of 25%. The special tax regime established for international business companies, under which they did not pay taxes, expires on December 31, 2021.
Capital gains tax. Details
No
VAT. Details
The standard VAT rate is 15%. A 10% VAT rate applies to hotel services and diving. There are also goods which are taxable at a rate of 0% (zero-rated items).
Other taxes
Social security contribution, transfer tax
Government fee
Yes
Stamp duty
2-2,5%

Taxation individuals

Tax Residents of Dominica pay tax on their worldwide income; non-residents pay tax on income from sources in Dominica.

The tax on individual income is paid at progressive rates. For residents:

  • for income up to XCD 30 000 (first XCD 2 500 per month) - 0% rate applies;
  • for income between XCD 30 000 and XCD 50 000 (next XCD 1 666,67 per month) - 15%;
  • for income between XCD 50 000 and XCD 80 000 (next XCD 2 500 per month) - 25%;
  • for income over XCD 80 000 (above XCD 6 666,67 per month) - 35%.

Income tax

Companies - tax residents of Dominica pay income tax on their worldwide income.

Income tax income is paid at a rate of 25%.

The special tax regime established for international business companies, under which in which they paid no taxes expires on December 31, 2021.

Capital Gains Tax

No.

CFC rules

No.

Withholding tax

Withholding tax is levied at the rate of 15% on payments of dividends, interest, royalties, technical payments for services.

Tax can also be levied on a number of other payments.

VAT

The standard VAT rate is 15%. A VAT rate of 10% applies to hotel services and diving. There are also goods which are taxable at a rate of 0% (zero-rated items).

Social contributions

Social Social contributions are paid by employees at a rate of 6% and by employers at a rate of 7% for For remuneration up to XCD 6 000 per month.

Stamp duty

Stamp duty is paid on real estate transactions at a rate of 2,5% of the of the value of the property by the seller and at a rate of 4% by the buyer. Stamp duty is also charged on transactions involving shares in companies where real estate real estate accounts for more than 50% of the assets.

In addition to Various fees and charges apply to real estate transactions. (insurance premium of 1%, legal fees of 2,5%, attorneys' fees - 3% of the property value).

International tax treaties

Dominica has entered into 11 Double Tax Treaties (DTC) and 16 Tax Information Exchange Agreements (TIEA) with the following jurisdictions:

11 DTCs: Antigua and Barbuda, Barbados, Belize, Guyana, Grenada, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Switzerland, Trinidad and Tobago, Jamaica.

16 TIEAs: Australia, Belgium, Canada, Denmark, Faroe Islands, Finland, France, Great Britain, Germany, Greenland, Iceland, Netherlands, New Zealand, Norway, Portugal, Sweden.

Currency controls

In general, there are no restrictions on foreign exchange transactions.

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