Dominica tax system - taxation of Dominica companies and individuals: VAT, income tax and capital gains. Tax treaties of Costa Rica.
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% |
International tax agreement
| Antigua and Barbuda, Barbados, Belize, Guyana, Grenada, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Switzerland, Trinidad and Tobago, Jamaica | |
| Australia, Belgium, Canada, Denmark, Faroe Islands, Finland, France, Great Britain, Germany, Greenland, Iceland, Netherlands, New Zealand, Norway, Portugal, Sweden |
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 30,000 XCD (first 2,500 XCD per month) - 0% rate applies;
- for income between 30,000 XCD and 50,000 XCD (next 1,666.67 XCD per month) - 15%;
- for income between 50,000 XCD and 80,000 XCD (next 2,500 XCD per month) - 25%;
- for income over 80,000 XCD (above 6,666.67 XCD 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.
Taxes of Dominica
| Min. rate for corporate tax | 25% |
|---|---|
| Capital gains tax | No |
| VAT | 15% |
| Withholding tax | 15%/15%/15% |
| Exchange control | No |