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. |
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 |