Tax Haven Dominica

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Tax haven Dominica initiated its development as a financial services centre in 1996 when it passed its international Business Act in an effort to diversify its economy which traditionally is based on agriculture. As a tax haven Dominica has put in place the necessary legislation and rules as requested by organisations such as the Organisation for Economic Cooperation and Development (OECD) and the Financial Action Task Force (FATF) to ensure that the tax haven’s financial services and activities are offered and conducted in a safe and regulated environment.

Country Overview

Tax haven Dominica was discovered in 1493 by Christopher Columbus. Tax haven Dominica was first settled by Carib Indians before European settlement, and today has the largest population of indigenous people in the Eastern Caribbean. Dominica has a population of about 75, 000, which comprises people of principally of African, European, Syrian and Asian descent. The residents on tax haven Dominica consider themselves God-fearing and belong to a variety of religious denominations which fall into two major categories of Protestant churches and the Roman Catholic Church. Some of the religious groups found on tax haven Dominica are Seven Day Adventists, Pentecostal, Anglican and Methodist.

Tax haven Dominica is a member of both the OECS – Organisation of Eastern Caribbean States and CARICOM – Caribbean Community and Single Economy. The country has maintained political stability since gaining independence from Britain and has developed its economy to become one of the soundest within the region; which is reinforced by being a member of the Eastern Caribbean monetary and economic unit. The main language spoken is English, although a French Creole similar to that spoken in Haiti and neighboring Martinique and Guadeloupe is also used for informal communication by locals.

Dominica Fiscal Incentives and Advantages

As a tax haven Dominica strives to promote a business and investor friendly environment that is not compromised by an economic system that is deficient of financial regulations and supervision. Tax haven Dominica has a developing economy and seeks to economic diversification by promoting industrial development, tourism, ecotourism, nature, agriculture and international financial services. Here are some of the advantages and incentives offered by tax haven Dominica:

  • 20 years tax exemption for offshore companies
  • No estate tax
  • No inheritance tax
  • No withholding tax on interests and dividends
  • No death and gift tax
  • No capital gains tax
  • Political, economic and monetary stability
  • Convenient time zone
  • Legal system based on Common Law

As a tax haven Dominica also enforces the necessary know-your-client procedures in compliance with international rules for combating financial terrorism and money laundering.

Dominica is working hard to ensure that its principles on customer confidentiality are maintained despite the challenges that the country anticipates given the pressures being placed on countries such as the United States, France and Germany and organisations like the OECD. As a tax haven offshore services provided are carried out by a group of experienced and well trained lawyers who seek to ensure that they offer their services are professional.

Tax haven Dominica is endowed with modern communications infrastructure that ensure that offshore services are swiftly and efficiently conducted. Easy accessibility through both regional, local, international airlines and inter island ferry services make traveling to the island hassle free.

Dominica Legislative Framework

Building tax haven Dominica as an attractive and robust international financial services centre has been centered on structuring a legislative framework that is capable of attaining that goal. As a tax haven, Dominica’s offshore legislative framework is instrumental in the provision of quality financial services and doing so in an environment that is supervised, regulated and in check international standards.

A series of offshore laws and amendments have been put in place as the offshore sector continues to grow and offer for more competitive offshore services and entities. Though small and may not be regarded a leading jurisdiction, tax haven Dominica is one of the safest and uncompromised tax havens still standing.

Some of tax haven Dominica’s offshore laws include:

  • International Exempt Trust Act
  • International Exempt Insurance Act
  • International Business Companies Act
  • Offshore Banking Act

Dominica Financial Services Unit (FSU)

The Financial Services Unit in tax haven Dominica is responsible for supervising and regulating international and offshore services offered in Dominica. The FSU also facilitates investments in different offshore sectors such as offshore banking, exempt insurance, offshore trust business and economic citizenship. Regular site visits are made by the officers of the FSU to offshore service providers in tax haven Dominica to ensure that operations are up to standard and in compliance with both regional and international demands.

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