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5.1. Tax Base for Resident Entities

Under the domestic tax laws, resident companies are taxed on their worldwide income i.e. income derived from all sources, earned from within and outside Dominica.

There is no capital gain tax in Dominica, except where such gains are part of income earning activities of the business

Dividend income received by resident companies is taxed as ordinary income unless a credit is available in respect of such dividends. Dividend from member state of CARICOM is exempt from tax.

Interest income on certain securities is tax exempt.

Royalties from member state of CARICOM is exempt from tax.