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6.5. Deduction of Cross-Border Payments and Non-Deductible Expenses

Expenses incurred for the purpose of business are deductible unless they are specifically disallowed. The following key expense types are not deductible or have limited deductibility for Dominica tax purposes:

  • Personal expenses
  • Expense incurred in respect of exempt income
  • Capital withdrawal or any expense or capital loss
  • CIT, foreign taxes
  • Fines and penalties
  • Contribution made to any unapproved pension fund
  • Donations to any unapproved charitable institution
  • Interest on loans paid to foreign affiliates which is not at arm's length or at commercial rates
  • Management fees payable to non-residents exceeding 5% of all allowable deductions, excluding management charges and capital allowances