Dominica and tax status for IBC’s

[bigladsmith]

Some crazy things happening. My mind thinks that if a country is placed back on blacklist then will that country just return to original type of IBC as before, zero tax etc...

Martin much thanks for all of the good info, maybe you would asssist me as I progress my thinking

 

[bigladsmith]

See also, looking like Dominica reverse decision on what was agreed in Jan 2019. Bills withdraw. Wondering what real situation is now?

This statement of the grounds is misleading, and manifestly unfair. The only reason why Dominica “has not signed and ratified the OECD Multilateral Convention on Mutual Administrative Assistance as amended ‘ is that the OECD has to date not given the go ahead to Dominica to sign on. In other words Dominica is being penalized while it is awaiting a response, and notwithstanding there was and is nothing else it can do or could have done. In fact, and in furtherance of a favourable response, we prepared legislation to take to the Parliament in January this year to have the Parliament approve and pass these Conventions into law. We had to withdraw those Bills when no clearance was received from the OECD.

 

[bigladsmith]

Update time

Dominica joins international efforts against tax evasion and avoidance - OECD

Data and research on tax including income tax, consumption tax, dispute resolution, tax avoidance, BEPS, tax havens, fiscal federalism, tax administration, tax treaties and transfer pricing., Today, at the OECD Headquarters in Paris, H.E. Sharlene Shillingford-McKlmon, Ambassador of Dominica to...

www.oecd.org

But what does all of this actually mean?

 

[Martin Everson]

But what does all of this actually mean?

Dominica has not yet started to exchange CRS data. It joined and set its first sate of exchanging data for Sept 2020. Meaning Dominica bank accounts are currently not reportable .

https://www.oecd.org/tax/automatic-exchange/international-framework-for-the-crs/MCAA-Signatories.pdf

 

[Alex Fr]

Any news on taxes for Dominica International Business companies? Please share

 

[Martin Everson]

Yes you pay tax if your Dominica company was incorporated after 31 December 2018 as I understand the new IBC amendment ACT 2. Amendment ACT5 is just a change of month from December to June.

So starting from December 31, 2019, all IBCs registered after January 1, 2019 will be required to pay corporate income tax at the rate of 30% (ACT 2). Those registered before have till 30 June, 2021 before they start paying (ACT 5) .

Seek legal advice however.

ACT 2:

http://www.dominica.gov.dm/laws/2019/International%20Business%20Companies%20(Amendment)%20Act%202019.pdf

ACT 5:

http://www.dominica.gov.dm/laws/2019/International%20Business%20Companies%20(Amendment)%20(No.%202)%20Act,%202019.pdf

 

[hernanday]

Pretty disgusting how eu countries can not only force citizens to pay high taxes, but they can force people nowhere near them to pay high taxes as well

 

[Martin Everson]

Yup its the EU practicing quasi economic colonialism on the lesser countries of the earth. They are extending the tax rules to ever corner of the earth behind the veil of the OECD .