Dominica tax system: audit, reporting and optimization of taxation of Dominica companies and individuals: VAT, income tax and capital gains

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

Antigua and Barbuda, Barbados, Belize, Guyana, Grenada, Saint Vincent and the Grenadines, Saint Kitts and Nevis, Saint Lucia, Trinidad and Tobago, Switzerland, Jamaica
   
Australia, Belgium, Great Britain, Germany, Greenland, Iceland, Denmark, Canada, Netherlands, New Zealand, Norway, Portugal, Sweden, Faroe Islands, Finland, France.


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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.

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).

Double taxation treaties

Dominica has entered into the following tax information exchange arrangements:

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

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

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
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