National Bank of Dominica Ltd
Small Business and Tourism Forum
Fort Shirley, Cabrits May 18, 2011
Invest Dominica Authority:
Facilitation Services For Small Business
Presenter: Mr. Shayan Monelle
Investor Services Officer
•
BACKGROUND
Invest Dominica Authority was established by an Act of Parliament in 2007
to facilitate and promote local and foreign investment.
•
•
The Authority has two Units:
Investor Services Unit- responsible for facilitation of investment and
enterprise
•
Investment Promotion Unit- responsible for promoting and attracting
investments.
MISSION
• To facilitate and actively promote investment opportunities in
Dominica by assisting Government in the formulation and
execution of national policies and providing support that
exceeds our clients’ expectation.
VISION
• To establish Dominica as the preferred investment location
for sustainable development.
THE MANDATE OF INVESTDOMINICA AUTHORITY IS AS FOLLOWS:
•
Formulate strategies and programs to promote Dominica as a jurisdiction
•
Facilitating investments: processing of applications for fiscal incentives,
providing clients with business advice, monitoring compliance
of
the
beneficiaries of fiscal incentives, preparing policy and effecting legislation
aim at improving the enabling environment and/or addressing sector
interest to enable competitiveness.
•
Image building of Dominica as an investment destination.
•
Execute strategies, programmes and activities to promote Dominica as a
destination in which to invest.
•
Sustaining investments in productive sectors
in which to invest.
SECTORS WHICH QUALIFY FOR CONCESSIONS
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Tourism accommodation and ancillary services
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Manufacturing
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Agro processing
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Professional and IT enabled services
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Medical tourism and medical services
•
Cultural and entertainment industries
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Any other sector with potential for employment, increase foreign exchange
earnings and overall contribute positively to national income.
LEGISLATION FOR RECOMMENDING AND APPROVING FISCAL
INCENTIVES
•
Fiscal Incentives Act- Chapter 84:51 of the Laws of the Commonwealth
of Dominica
•
Hotels Aid Act- Chapter 85:04 of the Laws of the Commonwealth of
Dominica
•
Income Tax Act- Chapter 67:01 of the Laws of the Commonwealth of
Dominica.
•
Value Added Tax Act ( Amendment)- No. 4 of 2006
FISCAL INCENTIVES
•
Definition of enterprise- (all encompassing) refers to economic or
development undertaking
•
Minister may issue a licence to import any plant, equipment,
machinery, spare parts, raw materials or components thereof
•
Tax holiday for a period not exceeding 15 years from the date of
production
•
Any net losses incurred by the enterprise during tax holiday
period may, upon cessation of that period be carried forward and
set off against the profit and gains chargeable to income tax for a
period of 5 years next following the cessation
•
No interest on dividends and other distributions out of profits
during the period of tax holiday
HOTELS AID ACT
• Any accommodation containing at least 5 rooms
for guests
• Waiver of import duty on building materials and
hotel articles
• If import duty is paid on articles imported for
hotel accommodation, this can be reclaimed
subsequent to the enterprise receiving
concessions
• Tax holiday is specified in the Income Tax Act
INCOME TAX ACT (Section 26)
•
•
Maximum 20 years tax holiday for hotels ( revised 1991)
VALUE ADDED TAX (Amendment)
The comptroller may exempt from tax, capital goods if the
importer has a valid Hotels Aid Act or Fiscal Incentives licence,
has not commenced taxable activity, is registered (among other
conditions)
TAXES PAYABLE WITHOUT CONCESSIONS

Import duty 5%-40% (dependent on items)

Customs service charge- 3%

Customs duties-28%

Environmental levy- 1%-1.5%

Excise tax on vehicles – 28%)

Income Tax-18%-38%(dependent on income)

•
**Value Added Tax- 15%
** (only new enterprise that is not engaged in a taxable activity)
CONCESSIONS AVAILABLE
•
Waiver of import duty on building materials, hotel equipment, raw and
packaging materials, spare parts, machinery and equipment and
commercial and special purpose vehicles.
•
Tax holiday.
•
Value Added Tax grants the waiver of the payment of the 15% VAT on
the importation of capital goods for new enterprises.
•
Once this enterprise becomes operational, the waiver of the VAT ceases
to be applicable.
•
The other concessions granted as per the Hotels Aid Act or the Fiscal
Incentives Act continues to be applicable until the time frame, which was
approved for the concession expires
HOW CAN CONCESSIONS BE OBTAINED?
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Retrieve an application from IDA online URL WWW.InvestDominica.com
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Retrieve an application from IDA’s Office
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Submit a completed application to Invest Dominica Authority with accompanying documents
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Receive letter granting approval of concession request
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Submit Master List of items for waiver of duties
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Receive stamped approve list of items
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Proceed to customs to clear items at the port
APPLICATION REQUIREMENTS
• Documents vary dependent on type of business and application
request.
• Documents required are listed on application forms
• Some Examples: Evidence of place of business operation. (lease
agreement, or title certificate)
• Licences from issuing entity, e.g. Fisheries, Planning, Discover
Dominica Authority.
• Business Plan (if required)
=
Application Approval Process (1)
• Submission of application with supporting
documentation to IDA
• Review of application by IDA staff
• Site visit by IDA staff to place of business operation
• IDA receives clearance from all required authorities
• Paper approved by client then submitted to Review
Committee
Application Approval process (2)
• If Review committee approves and investment is
less than EC$2,000,000 papers is submitted to
the Approval Committee (a subcommittee of
Cabinet) for final approval.
• If Review committee approves and investment is
mores than EC$2,000,000 papers is submitted to
Cabinet for final approval.
CONTACT INFORMATION
Invest Dominica Authority
First Floor, Financial Centre
Roseau, Commonwealth of Dominica
767-448-2045 TEL
767-448-5840 fax
www.investdominica.com
Thank you for your attention and participation
in this forum
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Invest Dominica - National Bank of Dominica