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

Taxes of Dominica

25%

Сorporate tax

Capital gains tax

15%

VAT

15% (dividend), 15% (interest), 15% (royalty)

Withholding tax

Exchange control

Basic taxes (briefly)

Personal tax

0-35%

Corporate tax (in detail)

Income tax is paid at the rate of 25%

Capital gains tax. Details

VAT. Details

The main rate is 15%, there are also reduced rates of 10% and 0%

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 20 000 - 15% rate applies;
for income between XCD 20 000 and XCD 50 000 - 25%;
for income over XCD 50 000 - 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 6,75% and by employers at a rate of 7,75% for For remuneration up to XCD 7 000 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 2% 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.

On April 15, 2019, Dominica signed the Multilateral Competent Authorities Agreement on Automatic Exchange of Financial Account Information under the Common Reporting Standard (CRS MCAA), under which Dominica receives information from its financial institutions and automatically exchanges this information with other jurisdictions on an annual basis. The automatic exchange began in September 2020.