25% standard rate on net profits.
Progressive on worldwide income for residents (non-residents taxed on Dominica-source income only), confirmed via six independent sources converging on the same structure: 0% on the first EC0,000, then rising through 15% and 25% bands to a 35% top rate above EC0,000. Administered by the Inland Revenue Division under the Income Tax Act Chapter 67:01.
15% standard VAT; 10% reduced rate for hotel accommodation and tourism services.
To be a tax resident, an individual must have their permanent place of residence in Dominica and spend a period of time there during the tax year, unless the Comptroller of Inland Revenue considers the reasons for absence acceptable - this is a facts-and-circumstances test rather than a pure day-count rule per the primary description available. Becoming a Dominica citizen (including via the Citizenship by Investment program) does not automatically make a person a tax resident. Personal income tax rates are progressive up to a top marginal rate of 35% on annual income exceeding XCD 50,000 for residents, taxed on worldwide income; non-residents are taxed on Dominica-source income and foreign-source income actually remitted to Dominica. Domestic companies (incorporated or registered as an external business in Dominica) pay a flat 25% rate on worldwide income; non-domestic companies face a 25% withholding tax on Dominica-source chargeable income instead.
Confirmed via multiple independent sources: Dominica has no Controlled Foreign Company regulations. Income retained in a foreign entity owned by a Dominica tax resident is generally not attributed back for Dominica tax purposes.
No statutory thin capitalization ratio or interest-limitation rule was identified in available sources for Dominica.
No domestic FBAR/Form 8938-equivalent requiring Dominica residents to self-report their own foreign accounts was identified. Dominica participates in the OECD's Common Reporting Standard (CRS), with financial institutions automatically exchanging account information with tax authorities in other participating jurisdictions - one source specifically frames this as a hallmark of a compliant financial system rather than a drawback. Dominica also maintains Tax Information Exchange Agreements with EU countries, Australia, Canada, New Zealand, Singapore, Switzerland, and the United Kingdom, separate from its CARICOM DTA relationships. Separately and independently of Dominica law, US citizens and Green Card holders with Dominica accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938 - notably relevant given Dominica's popular Citizenship by Investment program, which provides no relief from US tax obligations for US persons who obtain a second citizenship.
Dominica's double tax treaty relationships are effectively limited to CARICOM: it is party to the CARICOM Intra-Regional Double Taxation Agreement (a multilateral treaty that replaced a prior 1973 arrangement between "more developed" and "less developed" CARICOM member states), covering most Caribbean Community members including Antigua and Barbuda, Barbados, Belize, Grenada, Guyana, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines. Outside CARICOM, Dominica relies on TIEAs (listed above) rather than comprehensive bilateral DTAs - no conventional double tax treaty exists with the United States, United Kingdom (beyond the TIEA), or other major non-CARICOM economies, so double-tax relief for income connecting Dominica to those jurisdictions is generally not available through a bilateral treaty.