Income tax time is almost here again and that means every Financial planner is trying to sell you their services. Why people wait till the start of March to check their tax return, is really beyond me. Here is a trick, you can write off your monthly mortgage payment as nontaxable allowance.
According, to Dominica Tax income act taxes are payable on Income earnings or profits, for example employment income, rents, dividends, pension income, and income from overseas. If youâ€™re receiving pension payments from DSS (Dominica Social Security); earn interest on your bank accounts or Agriculture income will be exempted from income tax. Donâ€™t forget that as resident you are responsible for calculating and paying your own tax.
Note that if youâ€™re a self employed person you must submit a Tax return to the Inland Revenue every year even though your business made a loss. If not the comptroller of Inland Revenue will estimate your income and you will have to pay the amounted estimated. Also Business owners can write off non-taxable deductions for Equipment, Furniture and fittings to office supplies,etc
Non -residents will received allowances and deductions, and might be taxed on their net income.
Personal Income Tax:
On the first EC$ 15,000 – 0%
On the next EC$ 18,000 – 20%
On the next EC$ 30,000 – 30%
On all additional income – 40%
If you are an Employer or a Parlour/Store owners can learn about the different allowances and deductions. Visit http://www.investdominica.dm/taxation.cfm.