Withholding Tax

Governance

Income Tax Act, Chapter 67:01 of the Laws of the Commonwealth of Dominica, pursuant to sections 53, 55(13),56 (1) (b) or 57 and Third Schedule of the Act.

Payee

The person making the payment to the non resident individual is responsible for deducting the tax and remitting it to the Comptroller of Inland Revenue

Application

The tax is paid on the following:

  • Dividends
  • Interests or Discounts
  • Rental, lease premium or license in relation to immovable property
  • Rental or plant, machinery, equipment or other movable property
  • Royalty
  • Managment Charge
  • Commission or fee, not being in respect of an employment to which Section 57 applies
  • Annuities or other periodic payment including payments by way of alimony or maintenance
  • Distribution of income of a trust, being income of the kind specified in clauses (a) to (h)
  • Any other payment of an income nature

*See Also Third Schedule Paragraph 1.

Tax Rate

Subject to Section 50, tax shall be deducted from the actual amount and at the rate of 15%

Due Date

The tax becomes due and payable within 15 days after the end of the month for which it was deducted

Returns of Deduction

The person making the deduction shall prepare a return in such a form as approved by the Comptroller, indicating the tax deducted and paid, along with the certificate issued showing the total payment and tax calculated on it.

Liabilties for Submitting After Due Date

Section 98 makes provision for charging interest on deductible under section 53,55,56,57 or 97 remaining unpaid within the time specified at the rate of 1% a month until paid. This is in addition to any penalty to which the person is liable. The interest due by the person responsible for deducting the tax from the payment and is not recoverable from the person to whom and from whose pay the tax was deducted.

Offences

In accordance with Section 121 any person failing to deduct withholding tax and / or fails to make payment of such tax to the Comptroller within the time specified is guilty of an offence. Also, if given a further period of notice specified by the Comptroller, and such person still fails to comply with the requirement of this notice, he shall be guilty of a further offence.

Civil Penalties

A person will suffer penalty if a return of income is not furnished or an incorrect return is submitted. The penalty shall be an amount of not more that 10% of the tax chargeable for that year of assessment. Failure to pay the tax by the due date or failure to deduct tax is also liable to a penalty of 10%.

Also see sections 117 to 126 of the Income Tax Act, Chapter 67:01.

Criminal Penalties

Person convicted with the offence of failing to comply with the requirements of the Act, as it relates to taxes shall not only be liable to a fine of $1000 and/or imprisonment for one year, but also, if failing to comply after being given a further period of notice specified by the Comptroller, shall be guilty of a further offence liable to a fine of $50.00 or one month imprisonment for each day the offence continues.

Objections and Appeals

Persons aggrieved by an assessment may raise an objection in writing to the Comptroller within 30 days after the date of the notice of assessment was served.

See sections 87 to 93 of the Income Tax Act, Chapter 67:01.

View all forms on our Forms & Publications page.