Coat of Arms of the Commonwealth of Dominica

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Tax eFiling
FAQ

FAQ

  • Every individual is liable to tax once that individual is engaged in any taxable activity. There is no age limit on paying of taxes.

    However, where the individual only source of income is from a source exempt from tax, the taxpayer is not required to file a tax return.

  • Yes, a taxpayer can request in writing for changes to be made to the Tax return after it is filed.

  • An extension of time for filing a return does not relieve one from the obligation to pay taxes due and therefore outstanding taxes will attract a late payment penalty of 10% of the outstanding tax due. Interest will also accrue on the outstanding balance.

  • You may apply to the Comptroller in writing, requesting an extension of time for filing, stating the reason for the request and the intended filing date. It must be noted however that an extension of time must be requested prior to the due date. The department would be grateful if these requests are made at least one month before the due date.

    Where the tax fails to file the tax return by the extended time, the time granted becomes null and void; and the original due date for filing is now applicable.

  • Where one is employed with more than one employer there is always the tendency of each employer to apply the tax in accordance with the prescribe tax tables provided by the Inland Revenue Division. In these cases the individual is at the time enjoying the resident allowance of 0% more than once and is very likely to owe tax when completing the tax return since only one allowance will be allowed. The tax table is designed to allow for only one resident allowance per individual.

    It is the responsibility of individuals with more than one employer to contact the Inland Revenue Division for determining how much tax should be deducted from each employment.

  • Any income from a source in Dominica is subject to be taxed in accordance to the income tax act.

    Incase of business income it will be taxed as Corporation Tax or personal income tax.

    In the case of income from the rental of movable & immovable properties, management services, independent personal services, etc; these will be taxed as withholding tax.

  • Every resident individual whose income is solely from employment and exceeds $30,000.00 annually.

    Every individual whether resident or non- resident engaged in business activities in Dominica, irrespective of the profits or loss. In the case on Non-resident individuals they are not entitled to the resident allowance. Individuals in this case include taxi and mini-bus owners or drivers, doctors, mechanics, shopkeepers, vendors, lawyers, shop owners, contractors etc.

    Every Corporation or partnership, whether or not a profit is made.

    There is no exception for Corporations, partnerships and individuals to whom exemption of Tax has been granted under the Fiscal Incentive Act or otherwise.

    Where the business activity of the taxpayer; whether corporation, partnership or individual is solely from a source that is exempt from tax under section 25 of the Income tax act chap 67:01, the Tax payer is not required to file Income Tax return.

  • By first indentifying themselves, the tax payer will give the two tax account numbers and will be required to provide the revenue officer with information that will assist in identifying which account number is the correct one. The other number will then be discarded in order to complete the process.

  • There are no provisions in the either the Income tax act or the Road & Traffic Act to facilitate this requirement. The Income Tax is under the Authority of the Comptroller of Inland Revenue while the Road & Traffic Act is under the authority of the Commissioner of police

    The main functions of the Inland Revenue are to facilitate the receiving of payments and to maintain the records under the Road & Traffic Act.

  • There is no specific time for paying tax refunds. It has been the policy of the Revenue to attempt at processing Tax refunds as soon as possible. One major constraint that the Revenue is faced with is the availability of funds under Central Government budget system to pay refunds.

    Taxpayers are to be aware of certain situations as it relates to refunds:

    • The Revenue processes refunds in date order as they are filed
    • Returns filed on the same date may not be paid at the same time since the budgetary constraint will cause some refunds to be left out for later transactions
    • Due to the nature of some tax Returns, the Revenue must perform a review before authorizing the refund
    • And it is never possible to review all required returns at the same time
    • In general, refunds cannot be process all at once considering the constraints being faced
    • However, the Revenue tries its best to facilitate taxpayers who are in urgent need of their refunds. These circumstances may range from medical needs, educational needs, travel needs, etc.

  • There is no legislated limit on how far back the Taxpayer can be requested to file his/her Tax Return if he has never filed. The Tax laws clearly states that every taxpayer who is required to file a tax return must do so within the stipulated time frame. In certain circumstances the Comptroller may decide to use a cut off point to file. The six years mentioned under section 83 relates to how far back the comptroller can assess a taxpayer after he or she has filed. In the case of tax returns filed within the stipulated time the comptroller has up to six years after end of the year in which the return was due; and in cases where the tax return was filed after the due date the Comptroller has six years after the date that the return was filed.

  • Every tax payer has a civic responsibility to file his/her tax return under the self-assessment system currently existing. This stipulation is a must under the following conditions:

    • Where the taxpayer only source of taxable income is from employment and is above the existing threshold
    • Where the taxpayer is in business and such business income is not exempt under the tax act

    The Comptroller is required to provide the prescribed form for producing the required tax returns and to facilitate the process of filing tax returns, the Comptroller forwards the prescribed forms to registered taxpayers. Where a taxpayer does not receive a form from the Revenue, it is his or her responsibility to obtain one from the tax office

    By not receiving a Tax return through the mail or by delivery, does not relieve the taxpayer from his/her responsibility of complying with the filing requirements of the tax laws

  • Your employer is required to deduct tax in accordance to the prescribe tax tables provided by the Inland Revenue. Your salary/wage for the pay period is referenced in the tables and the tax amount shown is deducted accordingly. If your pay increases in subsequent pay period(s) its obvious that your tax deducted will increase.

    Depending on the level of your pay increase, your taxed bracket may change, ie, changed from one tax rate to a higher tax rate. It means, therefore, that if your pay is reverted back to its original amount you are most likely to have overpaid tax and would reflect on your tax return when filed.

  • Section 67(b) of the Income Tax Act indicates that individuals whose businesses ceased operation within a calendar year are required to file an income tax return. Also to those who ceased employment during the course of the year are also required to submit a return. This would allow them to recover any excess tax which was deducted from their salary.

  • All taxpayer meeting the requirement as a resident individual in Dominica during the basis period for the year of assessment is subjected to be taxed on their global Income. Their global Income should exclude income tax are exempt under the Tax act, income that can only be taxed in the jurisdiction where it is earned if there is in existence of a Tax treaty.

  • The tax payer should communicate to the Division, either in writing or electronically notifying them of the change of address as well as any other updates that are required. In the case of a name change, the Taxpayer must provide legal documentary evidence to satisfy the Inland Revenue.

  • An individual is only entitled to a deduction of amount paid as Interest on one property at a time. The section states that a deduction will be granted by way of mortgage interest for the acquisition or improvement to an owner occupied residential property. The key words to note are:

    • Interest paid: There must be an expenditure of interest
    • Owner: The property must be owned by the taxpayer with legal documentary evidence. (Certificate of title). The revenue department will allow the deduction to the taxpayer where the property is owned by the spouse of the taxpayer and the spouse has indicated, in writing, to permit the deduction
    • Occupier: The taxpayer must be occupying the property during the basis period for the year of assessment

    If however, a husband and wife own two houses, either jointly or individual, and there is proof that both houses are being occupied regularly, they each can claim the interest for separate property.

  • Donations can only be allowed if the institution is listed on the approved list by cabinet. The most recent update to that list is S.R.O 47 of 2007. It includes the following institutions:

    • Alpha centre
    • Dominica Infirmary
    • List of Approved Donations
    • Education Trust Fund
    • National Development Foundation of Dominica
    • Council of Legal Education
    • Scholarship through the Ministry of Education for secondary school or college within Dominica or University of the West Indies
    • Princess Margaret Hospital Trust Fund
    • Community Hostels Incorporated
    • Carnival Organising Committee (not less than $1,000 but not more than $20,000)
    • National Services Development Council
    • Alpha Centre
    • Dominica Infirmary
    • Grotto Home
    • Dominica Save the Children
    • President's Charities Foundation Inc
    • Private Sector Foundation for Health
    • Reaching Elderly Abandoned Citizens Housebound (REACH)
    • Compassionate Hearts
    • Dominica Fundamental Independent Baptist Fellowship
    • Go Girls Inc
    • Audaciously Ambitious Inc
    • CARE of the Elderly Organisation
    • Castle Bruce District Committee Development Corporation
    • Committee of Concerned Women

  • That's true. All benefit received as Social Security benefits is exempt from Income Tax. However, you can only claim where the benefits that you were entitled to was paid to your employer as reimbursement for making the payment on behalf of the Social Security. In most instances the amounts received from your employer are taxed together with your employment Income. Therefore you are required to make the claim when filing your Tax Return so that you can be refunded.

    Yes you can claim for previous years, but up to a maximum of six years.

  • Travelling allowance is taxable according to the tax act. However, the act makes provision to exempt the travelling allowance paid to public officials.

    Effective 2008, the nation budget proposed to exempt travelling allowance in the amount equal to that paid to public officials. The exemption is only allowed where the Comptroller is satisfied that the taxpayer is required to travel for the job.

  • Any individual wishing to claim student loan relief as a deduction must submit to the Inland Revenue a copy of the interest statement from the Financial Institution where the loan was taken, indicating the amount of interest paid or payable to them during the calendar year. For each year that a claim is being made a letter of enrollment from the EDUCATIONAL INSTUTION attended by the student must be provided. This letter must state that the student is enrolled for the current semester and the courses due to complete.

  • A copy of the certificate of title for the first claims is required. This is required whether they are filing their income tax return or making a claim for tax adjustment. A statement of interest from the financial institution bearing the name of the applicant and amount of interest paid or payable must be submitted together with Certificate of Title must be provided to make such a mortgage claim.

  • Student loan relief is granted to the individual who repays interest to financial institution in respect of the student loan. The individual is permitted to claim a maximum of $5000.00 in interest per student until the loan(s) is amortized. If however the student has completed studies and has not returned to the Commonwealth of Dominica, there is no entitlement to such tax relief.

Contact Information

High Street
Roseau
Dominica
+1 767 266 3600
ird@dominica.gov.dm

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