Dominica Taxes: A Guide to Corporate & Personal Income Taxes

Understanding how Dominica taxes work is important for employees, investors, and businesses. Dominican tax residents must pay an income tax, but they are not subject to inheritance, wealth, or capital gains taxes.

This guide delves into Dominica’s tax law, providing information on personal and corporate taxes for individuals and legal entities, as well as how to obtain tax residency.

Dominica Tax StructureThe Inland Revenue Division (IRD) is the government authority that enforces Dominica tax laws and is responsible for tax collection.

The Dominica income tax rate for individuals ranges from 15 percent to 35 percent and work on a progressive scale, as outlined below:

• No tax on the first EC $30,000 (USD $11,000)
• 15 percent on EC $30,001 to EC $50,000 (USD $18,500) of income
• 25 percent on EC $50,001 to EC $80,000 (USD $29,600) of income
• 35 percent on the rest of your income

Dominica personal income tax is paid on any income that a taxpayer earns, such as salaries, income from self-employment, dividends, and rental income.

If a company pays dividends, they are subject to a withholding tax, while an individual who receives dividends pays no tax on them. The only exception is income from the sale of real estate, which is exempt from both income tax and Dominica capital gains tax.

You will be happy to learn that taxpayers are entitled to reductions in the amount on which tax is levied, also known as tax deductions. As a taxpayer, you can benefit from several reductions at once. These reductions are added up and subtracted from your income, and the remaining amount is what you will pay income tax on.

Standard deductions apply to the following:

1. Up to EC $25,000 (USD $9,250) bank interest on a mortgage
2. Donations to institutions approved by the Dominica Cabinet
3. Payments up to EC $5,000 (USD $1,850) per student for university education

General deductions for income-related expenses:

1. Rental yield, including utility bills, property renovation costs, municipal fees and taxes paid by the property owner, and payments for services on tax returns preparation.
2. Self-employed expenses, including tools and supplies, rental of premises, and services on tax returns preparation.

Tax residents

Tax residents of Dominica must pay tax on all income, including that received from foreign sources. However, as a tax resident, you are entitled to a standard tax deduction of EC $30,000 with no conditions attached. If you have an annual income of $50,000 (USD $18,500), this standard deduction according to a Dominica taxes calculator means that you will pay $3,900 (USD $1,400) less than a non-resident.

Non-residents

Non-residents pay income tax on income earned in Dominica only.

Dominica tax rates for residents vs non-residents

Tax residents and non-tax residents of Dominica both pay the same tax rates.

• EC $0 to EC $30,000: 0 percent
• EC $30,001 to EC $50,000: 15 percent
• EC $50,001 to EC $80,000: 25 percent
• EC $80,001 and over: 35 percent

Example tax calculation for an annual income of $50,000

The following table shows how income tax in Dominica differs for tax residents and non-residents using an annual income of $50,000 (Eastern Caribbean Dollars).

Tax residents of Dominica end up paying less income tax than non-residents for income earned in the country thanks to the country’s standard tax deduction.

Important note: Non-residents are subject to a withholding tax of 15 percent on income sources like dividends, interest on deposits, rental yield, and royalties. The entity responsible for paying the income must pay the tax by deducting it from the payment. It is important to note that this withholding tax is withheld directly from the amount paid.

Dominica tax resident companies must pay the following:

• 25 percent corporate income tax
• Social security contribution for employees.

Companies registered as tax residents in Dominica must pay a corporate tax on worldwide income as well as any activities performed in Dominica, while non-resident companies pay tax on profits earned in Dominica only. Companies also pay VAT at the standard rate of 15 percent.

Corporate tax must be paid within three months following the end of the financial year, which is 30 June in Dominica. Accrued tax can be paid three times a year in quarterly installments of 25 percent, 30 percent, and 40 percent.

Non-resident companies will need to pay a 15 percent withholding tax on income such as dividends, interest on deposits, rental yield, and royalties. It is important to note that these types of income are not factored in when calculating the company’s corporate tax. The Dominica corporate tax rate and regulations are determined by the government and administered by the International Revenue Division (IRD).

Social Security contribution

The total social security contribution is either 14 or 14.25 percent, with employees contributing 6.5 percent. Employers must contribute 7.5 percent for employees without redundancy insurance and 7.75 percent for employees with redundancy insurance.

In Dominica, you pay tax on the purchase or sale of Dominica real estate. When purchasing real estate with an Alien Landholding License or to obtain Dominica Citizenship by Investment, the buyer must contribute to the Insurance Fund and pay stamp duty, legal fees, and judicial fees. These additional costs amount to about 10.5 percent of the transaction amount.

If you invest in Dominica property, you will not pay annual Dominica property tax. If you rent out the property, you must pay a state duty of about one percent per year to conclude your lease agreement.

If you are selling a property in Dominica, you must pay stamp duty, which is 2.5 percent of the transaction amount. However, the income you receive from the sale of your property is not taxable income.

Annual property tax rates

The Dominica Inland Revenue Division does not impose an annual property tax, contributing to its high ranking of 3rd on the Global Residency and Citizenship by Investment Report for tax optimization by Global Citizen Solutions. Instead, you must pay a yearly municipal tax based on the property’s value in Roseau and Canefield.

Roseau: 1.25 percent

Canefield: 1.25 percent

When purchasing a car in Dominica, you must register the vehicle and pass the state technical inspection, the cost of which amounts to about EC $52. In addition to this, car and motorcycle owners must pay an annual road tax and license fee, the amount of which will depend on the category of the vehicle (car, truck, or motorcycle) and whether it is a personal or commercial vehicle. For example, if you own a personal passenger car, you will pay EC $200 each year for road tax and license fees.

The following tables outline the costs you will encounter when purchasing a vehicle in Dominica.

One-time payments for the purchase of a car or motorcycle

Annual payments for a vehicle in Dominica

Yacht registration and maintenance costs

If you own a yacht in Dominica, you will need to pay a registration fee, as well as an annual license fee. The registration fee is EC $1,900 (USD $704) and is not affected by the size or displacement of the yacht. The annual fee from the second year is EC $950 (USD $352) and can be reduced to EC $750 (USD $278) if you pay it upfront for three to five years.

VAT – or value-added tax – is a tax levied on the sale of goods and services. Like most Caribbean taxes, the standard Dominica VAT rate is 15 percent. However, a reduced rate of 10 percent applies to hotels and diving companies. There are also some goods that have no VAT at all, such as goods for export (flour, milk, rice, sugar). Additionally, VAT is not charged on financial services, rent, or the sale of real estate.

The table below provides a summary of the VAT rates in Dominica based on the good or service:

Tourism tax

As of 1 January 2026, a Dominica tourism tax, the Nature Island Fund Arrival Visa Fee, was introduced. The fee is a flat $30 tax and applies to foreign travelers, which is usually included in flight and ferry tickets. Residents and Dominica passport holders are not required to pay the fee.

Dominica property owners are entitled to claim mortgage interest as a tax deduction. The tax provision allows interest paid to purchase or improve an owner-occupied residential property as allowable expenses. The exemption has the following conditions:

• Interest paid: A genuine interest outlay on a mortgage loan must be paid.
• Ownership: The taxpayer must own the property, evidenced by a title deed. The deduction may also be granted where the taxpayer’s spouse owns the property, provided the spouse gives written consent allowing the taxpayer to claim the deduction.
• Occupation: The taxpayer must have occupied the property during the tax year.

Where a married couple owns two properties—jointly or separately—and each property is regularly occupied, each may claim mortgage interest on a different property.

Dominica’s fiscal year is from 1 January to 31 December. The tax deadline for self-employed Dominica tax residents and registered companies is 31 March. Legal entities must submit their annual tax return to the Inland Revenue Division within 120 days of the end of their fiscal year.

Self-employed individuals have two forms they must submit, depending on their source of income:

• Personal Income Tax (Multiple Sources of Income)
• Personal Income Tax (Single Source of Income)

Legal entities must submit a Company Tax Return.

Employers remit Pay-as-You-Earn (PAYE) deductions to the Inland Revenue Division for the previous month’s earnings by the 15th of each month.

Individuals and entities required to submit tax returns to the Inland Revenue Division can submit them through the eservices.gov.dm.

Income tax on salaries must be paid monthly by the 15th of each month. Your employer will pay the tax by withholding it from your salary and transferring it to the tax office.

If you are a tax resident in Dominica who earns income in another country or a non-resident who earns income in Dominica, you may be required to pay taxes in both countries.

Dominica has double tax agreements with the following countries:

• Antigua and Barbuda
• Barbados
• Belize
• Grenada
• Guyana
• Jamaica
• Montserrat
• Saint Kitts and Nevis
• Saint Lucia
• Saint Vincent and the Grenadines

While Dominica does not have DTTs with most countries, this list may expand to include more countries if Dominica enters into new agreements.

Dominica exchanges tax information with other countries,, which includes financial activities in banks in Dominica, but it does not share the names of the owners of companies that are registered in the country. Dominica is part of the Convention on Mutual Administrative Assistance in Tax Matters.