Income tax in Dominica

Taxation Researcher | July 26, 2019

INDIVIDUAL TAXATION

Resident individuals are taxed on their worldwide income. Married couples are assessed and taxed separately.

INCOME TAX

Income earned by residents is taxed at progressive rates.

INCOME TAX 2019

TAXABLE INCOME, ECD (US$) TAX RATE
Up to 30,000 (US$11,111) 0%
30,000 - 50,000 (US$18,519) 15% on band over US$11,111
50,000 - 80,000 (US$29,630) 25% on band over US$18,519
Over 80,000 (US$29,630) 35% on all income over US$29,630
Source: Global Property Guide

INCOME TAX 2017

TAXABLE INCOME, ECD (US$) TAX RATE
Up to 25,000 (US$9,259) 0%
25,000 - 45,000 (US$16,667) 15% on band over US$9,259
45,000 - 75,000 (US$27,778) 25% on band over US$16,667
Over 75,000 (US$27,778) 35% on all income over US$27,778
Source: Global Property Guide

RENTAL INCOME
Dominica properties for saleRental income from residential properties is taxed at progressive income tax rates. Municipal taxes, maintenance costs, and accountancy fees incurred in the preparation of an income tax return are deductible.

Value Added Tax (VAT)

VAT is levied on rental income at a general rate of 15%. However, a special rate of 10% applies on (a) accommodation services provided by hotels, guest houses, inns or similar establishments and (b) accommodation services in an apartment or room with utilities and furnishings provided by the lessor or property owner.

Stamp Duty on Lease Contracts

For lease agreements where the annual rental is between ECD 100 (US$37) and ECD2,000 (US$741), the stamp duty is between ECD1.50 (US$0.56) and ECD20 (US$7.40). For every additional ECD500 (US$185) or part thereof, there is an additional stamp duty of ECD5 (US$1.85).

CAPITAL GAINS
There is no capital gains tax in Dominica.

Value Added Tax (VAT)

Sales of real properties are exempt from VAT.

Stamp Duty on Property Transfers

Sales of properties are liable for stamp duties levied at 6.5% of the sales price or the market value of the property. Generally, 2.5% is payable by the seller and 4% is payable by the buyer.

PROPERTY TAX

Municipal Tax

There are no real property taxes in Dominica but there are municipal taxes levied on properties located in the cities of Roseau and Canefield. The tax rate is 11.4% (or 1.25%) levied on the assessed value of the property.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are taxed at a flat rate of 25%. Income-generating expenses are deductible when calculating taxable income.

 

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