Tax Haven Dominica

The Commonwealth of Dominica is an Island nation located in the Caribbean. The island is often confused with another Caribbean national with a similar name, the Dominica Republic, but in truth, the two have distinct characteristics. Dominica is an English speaking country and is one of the many tax havens situated in the Caribbean. Dominica Ttx haven has passed legislation which facilitates the provision of offshore services on the island. The offshore services available in tax haven Dominica are: the formation of offshore trusts, the registration of offshore companies (International Business Companies or IBCs) and offshore banking.

Tax havens are those countries that impose zero taxes or very low tax rates. The Commonwealth of Dominica falls into this category. Most tax havens which exists in the world today are offshore jurisdictions which are well known for providing privacy and provides financial services to clients whose base are mostly non residents.

Dominica as a tax haven is free from the following taxes; capital gains, income, corporate, estate, withholding, inheritance, and gift tax among others. Dominica is a pure tax haven so therefore International Business Companies incorporated in the tax haven pay no form of taxes on income earned abroad by the international business companies. Similarly offshore legislation passed in tax haven Dominica exempts Offshore Companies and trusts from paying Stamp Duty on transfers made on behalf of the aforementioned offshore entities.

The Dominica International Business Companies Act which was passed in 1996 guarantees that that IBC offshore companies incorporated in tax haven Dominica are exempted for a period of twenty (20) years from local taxation and Stamp Duty. Dominica as a top tax haven in Dominica is a well known offshore jurisdiction in the Caribbean and the world. Dominica Offshore Companies can be formed by persons of any nationality.

Dominica offshore companies are afforded privacy and are protected under very strict and progressive offshore laws. Information regarding the owners and directors of Dominica offshore companies are kept very private; in fact this information is not kept at the Public Registry. This means that this information is not made public. To provide more privacy to the beneficial owners and directors of offshore corporations in Dominica nominee shareholders and directors can be used when incorporating according to the International Business Companies’ legislation. The laws of Dominica state that any person who divulges information regarding International Business Companies will be fined and may face a term of imprisonment.

International Business Companies incorporated in Dominica tax haven are not obligated by law to prepare and present annual financial statement for inspection to any tax authority on the island. The audits of the offshore companies in Dominica are kept for the benefits of company owners and directors. These records can be kept anywhere in the world. Offshore business companies in Dominica need only one shareholder and one director to be incorporated. Offshore business companies in Dominica are obligated to pay at the end of each financial year an annual fee to the government of Dominica which keeps companies in good standing order and will eventually keep them from being struck off the Registrar list of companies.

Dominica allows for the formation of Exempt trusts. As a pure tax haven the jurisdiction of Dominica imposes no taxation on an Exempt trust formed in the country. All exempt trusts formed in Dominica are exempted from Stamp Duty as well as local taxation. The offshore jurisdiction of Dominica also provides reputable offshore banking services. As a tax free haven Dominica offshore bank accounts will pay no taxes on interests received.

Tax haven Dominica has not signed any double taxation with other countries. This means that the tax information of persons who have offshore bank accounts or own offshore business companies in Dominica is safe meaning that this information is not shared with tax authorities of other countries. Another advantage to setting up an offshore business company in Dominica is the fact that there is no exchange control in place which would place restrictions on the amount of funds which could be moved about. The fact that exchange controls are not in place this makes it easier for Dominica offshore business companies to engage in trade around the globe. The lack of restrictions makes it easier for International Business Companies to move funds around.

Dominica tax haven provides an excellent avenue for persons who wish to reduce their tax liability. Since there are no local taxes charged to income earned abroad offshore clients are sure to benefit from tax reductions. The offshore jurisdiction of Dominica provides a means of asset protection which is backed by outstanding offshore legislation which is unbeatable in many jurisdictions. As a pure tax haven the jurisdiction of Dominica ensures that offshore companies, offshore bank and bank accounts and exempt trusts registered in Dominica receives are protected by strict privacy laws.

Continue reading here: Offshore Tax Havens

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