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Corporate income tax – Last January 2019, Dominica gazetted the International Business Companies (Amendment) Act, 2019. Under this amendment, Dominica repealed tax exemption for International Business Companies. However, IBCs incorporated on or before December 31, 2018, will be grandfathered and exempt from taxes for three years, until December 31, 2021.

IBCs incorporated on or after January 1, 2019, will not enjoy tax exemption and will be subject to the local tax regime which is currently 25% income tax on worldwide income. Amendments to the Income Tax Act are expected during this year.

Personal income tax – Dominica levies personal income tax on a residence and remittance basis:

  • Individuals residents or ordinarily residents in Dominica are subject to personal income tax on a worldwide basis.
  • Individuals residents but no ordinarily residents are subject to personal income tax on their Dominica source income and foreign-source income remitted to the country.
  • Individuals non-residents are taxed on their income from Dominica sources and income from foreign-sources remitted to the country.

Personal Income tax rates are progressive up to a top marginal tax rate of 35% on annual income exceeding XCD 50,000. Capital Gains are not taxable. Dominica bank interests are tax-exempt. Dividends received are included in taxable income but a tax credit up to 25% of the net dividend received is usually available.

Other taxes - Municipalities levy a property tax up to 1.25% of the property value, depending on the type, location and use of the property. There is a 6.5% stamp tax on contracts for the transfer of assets. There are no net wealth and inheritance taxes in Dominica.

The Value-added tax rate is 15%. Reduced rates and exemptions apply for certain good and services.

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 25% Corporate Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • 5 Losses carryforward (years)
  • 5.25% Social Security Employee
  • 7% Social Security Employer
  • 35% Personal Income Tax Rate
  • 15% VAT Rate
  • 31 Tax Treaties

Country details

North America

Dominica officially the Commonwealth of Dominica, is a sovereign island, member of CARICOM and the Commonwealth. It is part of Windward islands in the Lesser Antilles, Caribbean Sea. Located between the French overseas territories of Guadeloupe to the north and Martinique to the south. It has an extension of 750 sq. km. and a population of over 72,000 inhabitants.

Its capital is Roseau. Its official language is English, although it is widely spoken the Dominican Creole French, a French-based sub-variety of Antillean Creole. Its official currency is the East Caribbean Dollar (XCD), pegged to the US$ at a 2.71:1 ratio.

Dominica is a republic with a parliamentary democracy within the Commonwealth of Nations and, since 1979, a member of the International Organization of La Francophonie. The President is the head of state, while the executive power rests in the Cabinet, headed by the Prime Minister.

Dominica’s economy is basically divided into offshore financial services, tourism, and agriculture. Its main export is bananas and to a lesser extent, soap, baby oil, vegetables, grapefruit, tamarind, and oranges.

Its second source of income is tourism, with about 70,000-80,000 visitors per year. Other industries present in Dominica include furniture, cement blocks, and shoes. The issuance of postage stamps, mainly intended for philatelic collecting, is also an important source of income for its economy.

Its primary sector is the provision of offshore financial services as trusts, international company formation, payment processing companies, commercial and investment banking, structured financing, among others.

In Dominica are present some of the world’s leading financial service providers and its incorporated offshore companies benefit from a full tax exemption, easy accounting, and maximum privacy.

Dominica has also one of the most attractive citizenship by investment programs worldwide. Where through a donation of $100,000 to the government or a $200,000 investment in real estate, a foreign individual can get Dominica’s passport and travel visa-free to Europe, the Caribbean and part of South America and Southeast Asia.

Tax treaties

Country Type Date Signed
Ireland TIEA 2013-07-08
New Zealand TIEA 2010-03-16
Antigua and Barbuda DTC  1994-07-06
Sweden TIEA 2010-05-19
United States TIEA 1987-10-01
Saint Vincent and the Grenadines DTC  1994-07-06
Jamaica DTC  1994-07-06
Guyana DTC  1994-07-06
Barbados DTC  1994-07-06
Switzerland DTC  1963-08-26
Faroe Islands TIEA 2010-05-19
Germany TIEA 2010-09-21
France TIEA 2010-12-24
South Africa TIEA 2012-02-07
Netherlands TIEA 2010-05-11
Australia TIEA 2010-03-31
Greenland TIEA 2010-05-19
Finland TIEA 2010-05-19
United Kingdom TIEA 2010-03-31
Iceland TIEA 2010-05-19
Norway TIEA 2010-05-19
Trinidad and Tobago DTC  1994-07-06
Denmark TIEA 2010-05-19
Poland TIEA 2012-07-10
Belize DTC  1994-07-06
Saint Lucia DTC  1994-07-06
Canada TIEA 2010-06-29
Belgium TIEA 2010-02-26
Grenada DTC  1994-07-06
Portugal TIEA 2010-10-05
Saint Kitts and Nevis DTC  1994-07-06

Tax treaties Map



We can help you incorporate a International Business Company (Company limited by shares) in Dominica for $1,400.

Click here to incorporate your Dominica IBC.

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