Dominica finally loses its offshore status

Dominica finally loses its offshore status

All Dominica International Business Companies (IBCs) incorporated before December 31, 2018 will lose their exemptions from December 31, 2021 and will become subjects to local taxation. Beginning December 31, 2021, such companies will be subject to income tax, which will be levied on “international” income at a rate of 30%.

Such changes are provided for by the 2019 amendments, repealing the provisions of the International Business Companies Act 1996, which provide for tax incentives for such companies.

Recall that the same document established a similar taxation at a rate of 30% for international commercial companies registered after January 1, 2019, which began operations in 2020.

At the same time, Dominica’s new legislation does not currently impose obligations on companies in terms of economic presence (livelihood), financial reporting and auditing. But based on the practice of other countries, as well as from the fact that Dominica remains on the black list of the European Union, such changes can probably also be implemented in the near future.

Please note that this article is for informational and informational purposes only. For additional advice, please contact us at the contacts indicated on the website.

We draw your attention to the fact that this article is for informational purposes only. For more advice, contact us at the contacts listed on the site.