Dominica
Basic taxes (briefly)
| Personal tax | 0-35% |
|---|---|
| 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 | |
| VAT. Details | The standard VAT rate is 15%. A 10% VAT rate applies to hotel services and diving. |
| Other taxes | Social contributions |
| Government fee | |
| Stamp duty | 2,5% |
International tax agreement
TAXATION
Personal Income Tax
There is no personal income tax for IBCs in Dominica.
Corporate Tax
There is no corporate tax for IBCs in Dominica.
Capital Gains Tax
There is no capital gains tax for IBCs in Dominica.
VAT
Dominica IBCs are not subject to VAT.
Withholding Tax
Dominica IBCs are not subject to withholding tax.
Stamp Duty
Dominica IBCs are not subject to stamp duty.
Government Fee
Dominica IBC should pay annual fees on the birthday of the IBC and every twelve (12) months thereafter. The amount of the fee depends on the date of payment:
| if paid by 30 June | 500 USD |
| if paid after 30 June but by 31 October | 550 USD |
| if paid after 31 October but by 31 December | 750 USD |
| for every subsequent 3-month period | +250 USD |
Other Taxes and Duties
Dominica IBCs are exempt from taxation.
Double Tax Agreements
Dominica has exchange of information relationships with 31 jurisdictions through 11 DTCs and 20 TIEAs:
- 11 DTCs: 11 DTC: Antigua and Barbuda, Barbados, Belize, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Switzerland, Trinidad and Tobago
- 20 TIEAs: 20 TIEA: Australia, Belgium, Canada, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Iceland, Ireland, Netherlands, New Zealand, Norway, Poland, Portugal, South Africa, Sweden, United Kingdom, United States
Foreign Exchange Control
There is no exchange control in Dominica.
ACCOUNTS
Financial Statements
A company incorporated IBC Act shall keep and make available to the Registrar at all reasonable times accounting records that -
- are sufficient to record and explain the transactions of the company; and
- will at any time enable the financial position of the company to be determined with accuracy
A company shall keep accounting records required to be kept under subsection for a period of seven years from the date on which they are prepared.
The accounting records and minutes required by this section shall be kept in English, at the registered office of the company in Dominica.
In this section "accounting records" means all books, vouchers, invoices, contracts, financial statements, and any other relevant records pertaining to the financial affairs, including the assets and liabilities, of a company incorporated in Dominica.
A company that willfully contravenes this section is liable to a penalty of the hundred United States dollars in respect of each day of part thereof during which the contravention continues, and a director who knowingly permits the contravention is liable to alike penalty.
- are sufficient to record and explain the transactions of the company; and
- will at any time enable the financial position of the company to be determined with accuracy
A company shall keep accounting records required to be kept under subsection for a period of seven years from the date on which they are prepared.
The accounting records and minutes required by this section shall be kept in English, at the registered office of the company in Dominica.
In this section "accounting records" means all books, vouchers, invoices, contracts, financial statements, and any other relevant records pertaining to the financial affairs, including the assets and liabilities, of a company incorporated in Dominica.
A company that willfully contravenes this section is liable to a penalty of the hundred United States dollars in respect of each day of part thereof during which the contravention continues, and a director who knowingly permits the contravention is liable to alike penalty.
Annual Return
Dominica IBCs are not required to prepare and file annual return.
Tax Returns
Dominica IBCs are not required to file tax return.
Taxes of Dominica
| Min. rate for corporate tax | 25% |
|---|---|
| Capital gains tax | No |
| VAT | 15% |
| Withholding tax | 15%/15%/15% |
| Exchange control | No |