Tax
Income Tax Act with a 15 percent VAT
The Income Tax Act taxes residents on worldwide income and non-residents on income arising in Dominica, with corporation tax at 25 percent. Value added tax is charged at 15 percent under the Value Added Tax Act, with a reduced rate for hotel accommodation. The Inland Revenue Division administers both, and Dominica has committed to the OECD common reporting standard for exchange of financial account information.
Key rules
- Jurisdiction — National taxation administered by the Inland Revenue Division
- Deadline — Income tax return: filed by 31 March following the year of assessment
- Deadline — VAT return: filed and paid by the 20th of the following month
- Deadline — Pay as you earn: remitted by the 15th of the following month
Governing law
- Income Tax Act
- Value Added Tax Act
- Property Tax provisions of the Municipal Corporations legislation
- Common Reporting Standard (Automatic Exchange of Financial Account Information) Act
In practice
There is no capital gains tax and no inheritance tax, which is a significant part of Dominica's attraction for private clients, but the absence of capital gains tax does not exempt a trading profit on land dealt with as stock. The transparency reforms that accompanied the common reporting standard mean the older international business company structures no longer deliver confidentiality, and several have been wound up.