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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty Nil Dominica does not have capital duty.
Payroll Tax Nil There is no payroll tax separately due by companies on their total payroll expenditure. An employer is liable to withhold applicable taxes and social security premiums from the salaries of the employees under the PAYE system.
Social Security Employer Contribution 7.25% An employer is required to contribute at 7.25% (increased from 7%, effective 1 January 2022) of employee’s earnings, up to maximum earnings of XCD 6,000 per month. Employers may be required to contribute 0.25% to a Redundancy Fund in certain cases.
Social Security Employee Contribution 6.25% An employee is required to contribute at 6.25% (increased from 6%) of gross salary, up to maximum earnings of XCD 6,000 per month.
Stamp Tax Varies on type of documents Stamp tax is charged on any document that evidences a legal or contractual relationship between two or more parties. Stamp tax is levied at 6.5% (2.5% payable by the seller and 4% payable by the buyer) on the transfer of immovable property. Stamp duty on the transfer of land was temporarily reduced to 4.5% (2.5% payable by the seller and 2% payable by the buyer) for the period from 1 September 2020 until 31 October 2022. The reduced rates are made permanent effective 1 November 2022.
Transfer Tax Varies on type of transaction Transfer tax is levied based on the value of a property at the time of transfer and includes an assurance fund fee at the rate of 1%, a judicial fee at the rate of 2.5%, and a solicitor’s fee at the rate of 3%. For the period 1 September 2020 until 31 October 2022, the judicial fee and solicitor’s fee were reduced to 1%, and 2.5% respectively. The reduced rates are made permanent effective 1 November 2022.
Property Tax (Municipal Tax) Varies based on district There is no property tax in the country. However, municipal taxes are collected by the city and village councils, which vary from district to district. Effective 1 August 2022, a new abandoned property surcharge is levied on vacant land and abandoned properties at the rate of 50 cents per square foot, per year. The surcharge is payable by 20 August every year for the immediate 12 months ending 31 July, or part of the 12 months when the property was vacant. The first payment is due on 20 August 2023. The surcharge is initially imposed in certain areas of the capital, Roseau.
Custom Duty Varies based on the type of goods Custom duties are charged on a wide range of imported goods and it varies based on the type of goods. Effective 1 September 2022, all duties, taxes, levies, and charges are removed on pleasure crafts and their engines imported into Dominica.
Excise Duty Varies based on the type of goods Excise duty is levied on the manufacture and import of goods into Dominica and varies based on the type of goods.