Page 75 - Caribbean-Central America Profile 2018

DOMINICA

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

Official Name: Commonwealth of Dominica
Capital: Roseau
Nationality: Dominican(s)
Official Language: English (official), French Patois
Population (millions): 0.07(2016 est.)
DOMINICA Size: 290 square miles
Currency: East Caribbean Dollar (XCD)
Internet Domain: .dm
International Dialling Code: +1 767
Electricity: 220/240 volts

COUNTRY OVERVIEW INVESTMENT INCENTIVES
q Dominica sits midway along the Eastern The government of Dominica has provided support by offering many fiscal and other
Caribbean archipelago, just a few concessions. These include generous tax holidays, import duty and tax waivers, and streamlined
miles from Martinique to the south and processes for issuing of licenses and permits.
Guadeloupe to the north. Incentives available:
1. Tax holiday; the Fiscal Incentives Act allows for the granting of a tax holiday of up to
q Dominica is a mountainous, forested fifteen (15) years, for the manufacture of approved products by approved enterprises, as
island with a year-round tropical climate. follows:
q Dominica’s beaches generally consist of a. Group 1 enterprise: local value is 50 % or more of sales up to 15 years.
shimmering black sand or rocks and it also b. Group 2 enterprise: local value is 25 –50% of sales up to 12 years.
has over 360 rivers. c. Group 3 enterprise: local value is 10 –25% of sales up to 10 years.
d. Enclave enterprise: production exclusively for export up to 15 years.
q Dominica’s Morne Trois Pitons National e. Capital Intensive Enterprise: investment not less than US$10m up to 15 years.
Park has been inscribed by UNESCO as a
World Heritage Site, and is home to one of 2. The Hotels Aid Act and the Income Tax Act allows for the granting of a tax holiday of up
the largest boiling lakes in the world. to twenty (20) years for approved hotel and resort developments.
3. Companies registered under the International Business Companies Act are exempt from
q It is called “The Nature Island of the the payment of taxes, duties, and similar charges for a period of twenty (20) years from the
Caribbean”. date of incorporation.
4. Import duty and consumption tax exemptions (plant, machinery, equipment, spare parts,
q The capital is Roseau. building materials, raw and packaging materials, and others as appropriate).
Dominica’s development is based on a 5. Repatriation of profits; foreign investors are allowed to repatriate 100% of profits.
path of sustainable development, crafted in 6. Withholding tax exemptions; approved projects are allowed exemptions from payment of
harmony with nature. Investors are not only withholding taxes on dividends, interest payments, and other relevant external payments.
encouraged to invest in the various areas 7. Alien landholding license fee exemption (the fee is 10% of the value of the land).
identified for investment, but to discover a. Aliens wishing to purchase/hold land in Dominica must first apply for, and obtain an
the island and identify the many hidden Alien Land Holding License under the Alien Land Holding Regulation Act No. 17 of
1995.
opportunities available for investment. b. The Aliens Land Holding Act allows non nationals to acquire and hold up to one (1)
Investment opportunities are available in acre of land for residential purposes, and up to three (3) acres of land for commercial/
hotel development, the yachting sector, business purposes, without obtaining a license.
manufacturing and agro processing, c. The Act also provides for exempting certain development projects or aliens from the
information and communication technology, provisions of the Act, such as housing, industry, tourism, agriculture, fisheries, and
retirement tourism, time-share tourism and forestry, or where it is in the public interest to do so.
ancillary tourism services. d. An application for a license to hold land in Dominica must include:
• Particulars as to the ownership, location and consideration (price) proposed for the
Dominica was devastated by Hurricane Maria acquisition of the land.
on September 18, 2017. Various governments, • The purpose for which the land is to be utilized.
persons and institutions have been assisting • A plan by a licensed surveyor delineating the land.
in the efforts to rebuild the country. • A receipt for the payment of the relevant application fee
• Any other information required by the Minister (for Agriculture/Lands).

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