Dominica legal and accounting and tax considerations in 2024

Tax regulations in Dominica

  1. The corporate tax in the Commonwealth of Dominica is imposed at a standard rate of 28% on taxable profits. Offshore companies (IBCs) are however fully exempt from all taxes for a minimum period of 20 years. Companies must file returns within 3 months following the end of the financial year;
  2. The Value Added Tax in Dominica is levied at a standard rate of 15%. Companies must register for VAT during incorporation and subsequently file returns by 20th of the following month;
  3. Withholding tax in the Commonwealth of Dominica is levied at a standard rate of 15% on i) dividends ii) payments related to movable and immovable property iii) payments to public entertainers;
  4. Property transfer tax is imposed at a statutory rate of 2.5% on the property value;
  5. All employers in Dominica are required to contribute to the Dominica Social Security i) 7% of their gross salary to a maximum of US$130 and ii) 4%of their employees gross salary to a maximum of US$56 per month;
  6. Other taxes in Dominica include i) 28% excise duty on motor vehicles ii) alien land holding license fee levied at 20% on the total value of the property;
  7. The Commonwealth of Dominica has so far signed 7 double tax treaties with other jurisdictions including United Kingdom, USA, Sweden, Switzerland, Norway among others;
  8. The Commonwealth of Dominica has been blacklisted by a number of countries as a low tax jurisdiction. Some of these countries include Mexico, Argentina, Spain, France among others;
  9. Finally, Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
  10. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Contact us

For additional information on our accounting and tax services in Dominica, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
Caribbean Community (CARICOM) central bank of the dominican republic invest dominica authority government of the commonwealth of dominica