Published at: 09/11/2021 12:04 pm
The European Union finally lifted Dominica, Anguilla and Seychelles from the list of non-cooperative countries.
The three countries are now on the "grey list", which means that the island nations agreed to review their tax systems and are committed to complying with the international tax directives.
The EU blacklist (created in 2017) contains nine "non-cooperative) countries: American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, the U.S. Virgin Islands and Vanuatu.
It is good to know that Dominica is the home of one of the most popular citizenship by investment programs and a low-tax financial centre.
You become a tax resident of Dominica if you spend more than 183 days per year in the country. Meanwhile, the tax base for residents is their worldwide income. Nonresident citizens must pay tax only on their onshore (from Dominica) sourced or derived income.
You must pay tax (if you are a resident) on the incomes from business, rent, royalty, interest, premiums, discounts, fees, commissions and employment. Naturally, you can also use several allowable deductions. The individuals' income tax rates are from 15 to 35%, but there is no capital gain tax.
Officially, the grey list does not exist; its official title is "state of play document". It includes those countries that haven't complied with all international taxation "standards" but have committed to complying and implementing the OECD's and the EU's rules.
Sooner or later, all countries must comply with the international tax dictates of the most developed countries. Theoretically, nothing changes for the citizens of Dominica. However, practically it's always better to present the passport of a cooperative nation. Suppose you are planning to integrate in Dominica using its financial centre. In that case, your activity will be less monitored. Your international transfer will pass easier through the different banking systems.
Do you want to know the details of becoming a citizen of Dominica? Or do you need financial advice regarding Dominica's financial centre and taxation? We are here to help you with all the detailed information. Discus Holdings' experts have vast experience with the Caribbean island nation since 1993, when Dominica launched its citizenship by investment program. Ask for a free consultation here!