Taxation
Dominiquesa legislation offers a minimum tax exemption of 20 years for offshore corporations, which is valid from the date of incorporation. Once approved, International Business Companies (IBCs) are exempt from payments for withholding taxes or dividends, payment interests and other relevant external payments.
Dominica is not party to any double taxation treaty and has a tax treaty with the United Kingdom, the US and the CARICOM countries in order to prevent double taxation of the income obtained in that country.
Also, there is no tax on capital gains and foreign investors can repatriate 100 percent of their profits.
Why Select Dominica as an Offshore Tax Haven
As an offshore jurisdiction, Dominica has much to offer. Whether as a place to settle and live or just to visit, this mountainous island is renowned for its incomparable beauty.
The Dominican government has directed its efforts in recent years to promote eco-tourism. The climate of this island is tropical and is located in the middle of a course of fascinating and multicultural islands that make up the Eastern Caribbean.
Dominica’s economy, which once depended heavily on agriculture, has diversified to include small-scale industry, geothermal energy production, tourism and offshore investments. The government has established, in a period of almost two decades, a series of incentives for investors.
The rules and regulations by which a Dominica offshore company can establish and operate are very favorable, include strong privacy laws and a highly optimized process for the creation of an IBC in Dominica. In addition, it is possible to obtain an offshore banking license since the government is interested in developing its financial sector.
Not least, Dominica has the world’s least expensive economic citizenship program, which gives expats the opportunity to obtain Dominican citizenship
- English is the language used by the government, and it is also used for business and speaking
- Tax exemption status is available for companies located outside of the country. A Dominican IBC can benefit from a tax holiday for a minimum of 20 years with a total exception of taxes on income and capital gains, withholding taxes, transfer taxes and stamp duties on income received from abroad.
- Dominica does not participate in any double taxation treaty.
- Dominica has close diplomatic and economic ties with all other nations and territories of the Eastern Caribbean and with the US, UK and EU.
- The offshore companies located in this country are protected by strict confidentiality laws implemented by the government, and there is no requirement to implement or publish annual statements for this type of dominiquesa corporation.
- Establishing an IBC requires at least one director and one shareholder. These may be individuals or corporations, an annual general meeting is not required, and directors and shareholders do not need to reside in Dominica.
- Dominica is a 2-hour flight to the continental United States. and is only 1 hour away from the Eastern time zone.
- The government has initiated processes that facilitate the creation of a dominiquesa offshore company; Registration can be done through the Internet. The Office of Companies and Intellectual Properties (CIPO, for its acronym in English), is very useful in this regard.
- The government offers Dominica’s legal economic citizenship to those seeking a secondary passport. Offshore investors can obtain full citizenship through the Dominica Citizenship Program in exchange for a monetary investment. (link)
- Foreign investors are allowed to repatriate 100% of their profits.
- The maximum confidentiality regarding Dominican offshore investments and the operations of the IBCs are guaranteed by law.
- The USA. and Dominica maintain a cooperative relationship where the former supports the government’s efforts to expand its economy.
- Dominica has a tropical climate all year round, its lush forests, mountains, waterfalls and rivers make the island a paradise for both the ecological tourist and the immigrant. Dominica has a lower crime rate than most other Caribbean nations and tourism is constantly driven by the government.