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Dominica

Taxes

If you want to incorporate in Dominica, this article will educate you on the tax laws for an IBC which is the most common legal entity in Dominica.

International Business Companies (IBCs) in Dominica are entitled to do business internationally and shall not trade with residents, own real estate property right within the territory and conduct certain financial services activities. IBCs income accrued offshore, from our research, and this is not personal advice, are 20-year tax-exempted. This ranks Dominica as 1st when compared to corp. taxation rate internationally. An annual Government fee may apply.

An IBC in Dominica may be formed by one or more shareholders and one or more directors, who can be the same person and may be a natural or a legal person. Nominee shareholders and directors are allowed. It may not be required a secretary. Minimum capital required is US$ 100, shares may be in any currency, and may be issued with par or non-par value, and as bearer or registered form.
Details of shareholders, directors and beneficiaries are not publicly disclosed. There is no requirement to prepare or file accounts or financial statements, or to appoint an auditor.
Thin capitalisation rules are not in play. Thin capitalisation refers to any type of requirements on companies' debt-to-asset ratios. Dividends paid or received by an IBC are not subject to taxation. Dividends are distributions of earnings of a legal entity, voted by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, shares of stock, or other property. Capital Gains are exempted of taxes. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

IBCs are not subject to withholding taxes. This means that payments on dividends, interests, royalties or fees to non-residents are not subject to taxation.
The value added tax (VAT) rate in Dominica is 15.00%, which ranks Dominica as 80th overall in terms of VAT taxation rate internationally. There is no known tax on wealth in Dominica. There are no known inheritance taxes in Dominica. There are real property and transfer taxes in Dominica.

The above is not tax or legal advice for your company's facts and circumstances. We are able to help you to find to an accountant in Dominica who can answer all your questions. Ready to get started? Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Dominica
XCD
Roseau
North America
en-DM
72,813

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

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