Dominica personal income tax rates for 2009 are progressive, between 16% - 36%.
Taxable Income (EC$) / Tax Rate %
Up to EC$ 20,000 16%
EC$ 20,000 - 50,000 26%
Over EC$ 50,000 36%
Taxes are payable on earnings or profits in accordance with the Income Tax Act of Dominica. Dominica income tax is charged on income of all kinds, including employment income, rents, dividends, pension income, and income from overseas.
Some income is exempt from tax, such as age and sickness benefit payable by the Dominica Social Security, interest from banks in Dominica, and agricultural income.
Resident self-employed persons are liable to pay income tax on the net profit of their business. They are responsible for calculating and paying their own tax.
All self-employed persons must submit a Tax Return to the Inland Revenue Division of Dominica every year. If the business makes a net loss, self-employed persons are still liable to furnish an Income Tax Return. If in receipt of income other than business income, it forms part of assessable income before allowances and deductions.
Nonresident individuals will not be granted the allowances and deductions in Dominica, hence they will be taxed on total net income.
The standard rate of corporate tax in Dominica is 30%. International business companies (IBC) used for offshore business purposes, are fully exempted from all taxes in Dominica.
Dominica Withholding Tax Rates
Rental payment in respect of immovable property: 15%
Rental payments in respect of movable property : 15%
Fees payable to public entertainers: 15%
Other payments: 15%
Withholding Tax Exemptions: Approved projects are allowed exemptions from payment of withholding taxes on dividends, interest payments, and other relevant external payments.
Dominica Social Security: All employers must register with the Dominica Social Security. Employers are required to register with the Dominica Social Security within seven days of hiring an employee.
The employer pays 7% of the wage to maximum of EC$350.00 (US$ 129.63) per month and the employee pays 4% of wage to maximum of EC $ 150.00 (US$55.56) per month.
Dominica Land Transfer Tax
Assurance Fund Fee: 1% of value
Judicial Fee: 2.5% of value
Stamp Duty (buyer): 4% of value
Stamp Duty (vendor): 2.5% of value
Solicitor's Fee: 3% of value on which a 15% VAT is payable
Other Taxes in Dominica
Environmental Levy: 1% or 1.5% (based on items)
Alien Land Holding Licence Fee: 10% of the value of property
Customs Service Charge: 3%
Excise Tax: Motor Vehicles: 28%
Tax for Offshore Companies
All locally registered offshore companies (Dominica IBC's) are absolutely exempt from all taxes in Dominica for a minimum of 20 years. Dominica didn't sign any agreements on avoidance of double taxation with other countries, so there is no data exchange between state bodies of Dominica and tax authorities of other countries. Running an off-shore company (Dominica IBC) in Dominica is very simple - after you pay all the necessary government duty and fee.
Dominica offshore jurisdiction law contains human rights and freedom, which guarantee the future political stability of the nation and based on British common law.
International Business Corporation or also referred to "offshore company" is the main type of company presently being registered in Dominica. International Business Companies (IBC's) help to facilitate international trader and investment activities. Regulated by the International Business Companies Act of June 26, 1996, Dominica's off-shores activity guarantees complete tax exemption, privacy, flexibility of company's structure and fast registration.
Dominica IBC Tax Haven Status
- Exemption from all local taxes, duties and other similar charges.
- No exchange controls on the movement of funds by IBCs.
- No requirement to file accounting information with any authority.
- Share registers are only available for inspection by registered shareholders.
- There is no capital gains tax.
- Sole directors and shareholders are allowed. The sole director may also be the sole shareholder. Directors may be persons or another company.
- There is no statutory requirement to hold an Annual General Meeting.
- Asset security is maintained as provisions restrict seizure, expropriation or confiscation by foreign authorities.
- Dominica is an English speaking independent sovereign jurisdiction and will not be affected by the impending OECD or any EU/UK legislation.
Dominica International Business Company (Dominica IBC)
This is the most attractive type of company in Dominica, which is usually created for the purposes of conducting an offshore business. It may conduct all the legal activities outside Dominica, excluding those which require a specific license, such as banking, insurance or fund management business. It is also referred to as an Offshore Company. It can be incorporated in a short period of time and its registration fee does not depend on its capital. Accounts of the company need not be audited and filed. Corporate documents must be kept by a registered agent in the registered office of a company in Dominica. Public register does not contain any information on the beneficial owners of the company. Many e-commerce businesses are based in Dominica.
A private person and a corporate entity can become a shareholder and a director of a company. In order to incorporate and administer a company, there should be at least one shareholder and at least one director. Shareholders' meetings may be arranged in any country of the world. A corporate secretary is not obligatory. Different types of shares are allowed. A company name must end with one of the following words: "Limited", "Ltd", "SA", "Inc", "Incorporated", "Corp", "Corporation".
Offshore IBC formation in Dominica has the Following Features:
Taxation: From the day of the offshore company formation, an IBC in Dominica pays no taxes / similar charges for a period of 20 years.
Directors / Shareholders: An offshore IBC in Dominica requires a minimum of one director and one shareholder. Corporate directors are permitted. A copy of the Register of Directors must be kept at the registered office of the offshore company. The Register with the directors' names is not available to public.
Books & Records: Copies of the following company documents must be kept at the registered office - The Articles of the Association, the Memorandum of Association, Certificate of Incorporation.
Annual Reporting: No annual returns need to be filed. It should be noted that penalty fees of up to 50% of the annual Government fee will be incurred if the license fee is not paid when due.
Timescale for Company Registration: The incorporation process will generally be finished the same or not later than the next working day after the receipt of the funds and filled forms. However, the delivery of the documents varies from 1 to 5 working days depending upon where the client is located, despite the fact that we use respectable couriers like FedEx. For example time delivery to the UK is two working days, to the US - one working day, to Australia - 4 working days.
Restrictions on Name and Activity of an IBC: Names must end with one of the following words, or abbreviations thereof: Limited, Sociedad Anonima; Societe Anonyme; Corporation; Incorporated; Pty Ltd; GmbH; LLC; PLC; etc. All other used abbreviations indicating limited liability are permitted in Dominica. The following words cannot be used: Assurance; Bank; Building Society; Chamber of Commerce; Chartered; Co-operative; Imperial; Insurance; Municipal; Royal; National and Dominica. In addition, names must not suggest a connection with any branch of the Government, a political party or professional association.
Local Requirements for an IBC: As a matter of local company law of Dominica, an offshore company MUST maintain a registered office within Dominica and must also appoint a Dominican resident as the registered agent. We provide all these services.
Secrecy: Section 112 of the International Business Companies Act 1996 makes it an offence punishable by a fine of US$25,000.00 and imprisonment for two years for any officer, auditor or official liquidator to reveal any information regarding the company except by an order of the Court on an application by the Attorney General relating solely to activities which are criminal under the laws of Dominica.
Offshore Company Structure
A Dominica IBC (International Business Company, or, International Business Corporation) is flexible regarding the capitalization, shareholders, directors and shares of the company.
- There is a minimum of US$ 100 Authorized Share Capital requirement for Dominican companies.
- The maximum Share Capital has no limitation and does not affect the Registration Fee or the Annual Fees.
- Dominica Offshore Companies do not require more than one director
- One shareholder and one director are allowed. The same person can be the shareholder and director.
- A director does not have to be a shareholder at a Dominica offshore company.
- Directors and shareholders may be natural persons or corporate entities in Dominica companies.
- Shareholders and directors may be of any nationality and residents of any country.
- Shares can be issued with or without Par Value at a Dominica offshore company.
- Shares may be issued as Registered or Bearer form.
- For Dominica offshore incorporation, Nominee shareholders and directors are allowed and we can provide this service if required.
- There is no requirement for a secretary.
- IBC shares may be issued in a variety of forms and classifications and may include: Par or No Par Value, voting or non-voting, Preferential or Common and Registered or Bearer form.
- Shares may be issued for money or for other valuable consideration.
- Shares may be issued in any currency.
Shareholders, Directors and Officers
- The minimum requirement for a Dominican Offshore Company is one shareholder and one director who may be the same person.
- Nominee Shareholders and directors are allowed and we can provide this service.
- There is no statutory requirement for a secretary or other officers for Dominican corporations; however, if officers are required they can also be directors and shareholders.
- Shareholders and directors may be of any nationality and reside in any country.
- Directors and shareholders may be either a natural person or a corporate entity.
Meeting of Shareholders and Directors
- A Dominican IBC does not need to hold an Annual General Meeting of its shareholders. If such a meeting is decided on, it may be held anywhere in the world and by any means including by telephone or other electronic means, once effective communication is ensured.
- Director's meetings are not required for a Dominica offshore company.
- When a meeting of shareholders or directors is held, a proxy may represent a shareholder or director and speak or vote on his behalf.
Taxation & Fees for Dominica Offshore Companies (Dominica IBC's)
- Law provides minimum twenty (20) years Tax Exemption for offshore companies beginning from the day of incorporation.
- Annual Fees are to be paid on the birthday of the company and every twelve (12) months thereafter.
- There are no dual Taxation Treaties with other countries, therefore no requirement for exchange of information with other Tax Authorities.
Corporate Books and Records
- There is no requirement to prepare or to file any accounts or financial statements.
- There is no requirement to appoint an auditor for a Dominica offshore company.
- Copies of the following documents must be kept at the Registered Office - Articles of Association, Memorandum of Association, and Certificate of Incorporation.
- A copy of the Register of Directors must be kept at the Registered Office of the IBC. The Register is not available to the public.
Dominica IBC Restrictions & Exemptions
An Offshore Company incorporated in the Commonwealth of Dominica, shall not:
- Do business with residents of Dominica.
- Own interest in real property in Dominica.
- Carry on business in banking or trust and insurance or re-insurance business except if the appropriate license is granted.
- Provide company management or registered offices for a Dominica Offshore Corporation.
Dominican IBC's May:
- Have professional contact with local lawyers, accountants, investment advisors etc.
- Hold meetings of shareholders and directors in Dominica.
- Own and manage sea vessels.
Dominica Value Added Tax is 15% on all goods & services. The tax rate is 10% on Hotel Accommodation.
Income Tax Rate
Corporate Tax Rate
Sales Tax / VAT Rate
Last Update: 2009
ANTIGUA & BARBUDA
BOSNIA & HERZEGOVINA
BRITISH VIRGIN ISLANDS
CENTRAL AFRICAN REP.
CONGO, DEM. REPUBLIC
CONGO, REPUBLIC OF
ISLE OF MAN
PAPUA NEW GUINEA
TURKS AND CAICOS
UNITED ARAB EMIRATES
© 2009-2012 TaxRates.cc
2011 - 2012 Tax Rate Guide and Tax Help Website