Dominica: Tax measures in 2022-2023 budget, including customs and VAT

The Dominica 2022-2023 budget includes tax-related measures

The Dominica 2022-2023 budget includes tax-related measures

The Dominica 2022-2023 budget (presented 26 July 2022) includes the following tax-related measures:

  • All duties, taxes, levies and charges on all “pleasure crafts” and engines of “pleasure crafts” imported into Dominica will be removed effective 1 September 2022.
  • Value added tax (VAT) on agricultural tools and potting soil will be removed effective 1 September 2022.
  • The number of VAT-free units of electrical energy provided by DOMLEC (Dominica Electricity Services Limited) to domestic consumers per billing period will be increased from 100Kwh to 150 Kwh, and there will be no VAT on fuel surcharge charged on DOMLEC bills (for all categories of consumers including domestic, commercial, industrial, government and hotels), effective 1 August 2022.
  • Fees applicable on the transfer of land are reduced effective 1 November 2022. The new fees are:
    • Stamp duty—2%
    • Judicial fee—1%
    • Assurance fund—1%
    • Fee to lawyers—maximum of 2.5%
    • Fees payable by the seller of the land will remain at 2.5%
  • A tax on abandoned properties will be applied at a rate of U.S. $0.50 per square foot, per year payable by 20 August every year for the immediate 12 months ending 31 July (or part of the 12 months when the property was vacant) effective 1 August 2022. Therefore, the first payment is due 20 August 2023.

Read an July 2022 report [PDF 299 KB] prepared by the KPMG member firm in Barbados and the Eastern Caribbean

 

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