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