Dominica As A Reputable Tax Shelter

Dominica is a small independent country situated between the French islands of Guadeloupe and Martinique. The country has a population of about 72 000 persons of which approximately 14 000 of these people reside in the capital city of Roseau, where the official language is English. Dominica acquired independence from Great Britain on November 3rd 1978 and has its own constitution and the laws of the country are based on the English common law system. The country is economically and politically stable.

Dominica is a relatively young tax haven when compared to other tax havens and because of good law structuring and onsite professional offshore services, Dominica is quickly making its mark as a top tax haven. The International Business Companies Act (IBC) passed in 1996 allows for the formation of offshore companies (IBCs) on the island. Dominican International Business Corporations by law are guaranteed tax exemption for a minimum of 20 years. This makes Dominica a very attractive tax haven since many other offshore jurisdictions do not offer such a guarantee if they do offer any guarantee at all. Dominican IBCs are exempted from paying local taxes, capital gain taxes and other estate taxes on all capital generated.

Dual citizenship or a second passport can be acquired through economic citizenship or second passport programmes by which an individual may be conferred a second citizenship through naturalisation or a second passport without having to meet strict residency requirements. Usually families and individuals tend to apply for second passports whenever their countries are unstable. Being a holder of a second passport facilitates travel for someone who under normal circumstances would require a visa to be able to travel to various countries. A second passport with second citizenship facilitates securing bank loans and accounts, particularly because banks generally tend to readily offer such services. To apply for citizenship, application procedures and requirements must be followed.

Dominica as a tax haven allows persons to register trust companies. Under the International Trust Exempt Act of 1997 both charitable and non charitable trusts can be registered in Dominica. Dominica trust companies protect people from forced heir ship. As mentioned before trusts pay no form of taxation or stamp duty. Trusts are required by law to pay a registration fee to set up and this fee has to be paid on each anniversary of the registration of said trust

Dominica offshore companies offer top rate asset protection. By transferring your assets to a corporation mean that you are no longer in charge of it and for example in case of divorce, or civil litigations your assets cannot be seized. Assets placed in an offshore trust in Dominica pay no taxes or stamp duty. This gives the owner of the assets the chance to gain maximum benefits from his assets. The confidentiality rule applies to trust protection and information about the owners cannot be given out at the registry since the information is not kept there.

All information about the Trust and owners are kept with the local agent acting on behalf of the owners. Any agent who discloses information in respect of a company incorporated in Dominica is liable to a fine of twenty five thousand (US$25,000) United States Dollars plus two years jail time. Information can only be divulged if a court order is issued.

As a tax haven guarantees that there are no local taxes charged on capital generated outside of Dominica. Dominica is the ideal offshore jurisdiction to use to refrain from being overburdened with heavy taxes which are characteristic of bigger, more developed countries. Incorporating an International Business corporation in Dominica is stress free. There is no minimum capital requirement.

As a tax haven Dominica also offers offshore banking, internet gambling and exempt insurance. All these are offered with maximum privacy. Dominica as a tax haven offers a stable political environment to attract offshore investment. The various laws and amendments approved by the government all work in to ensure that Dominica remain a competitive tax haven. Dominica as a tax haven offers total confidentiality to the owners and directors of offshore companies on the island. Furthermore the country has a no zero tax policy for all offshore companies formed or registered on the island.