Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697797369739.pdf (Dominica)
Commonwealth of Dominica Inland Revenue Division Guide to completing your 2007 Personal Income Tax Return Commonwealth of Dominica - Inland Revenue Division Contents 1.

Introduction 2.

Personal Information 3.

Calculating your Net Income 4.

Calculating your Allowances and Deductions 5.

Calculating your tax payable 6.

Calculating your Credits and Payments 7.

Completing the Schedules 8.

Checklist 9.


Conclusion and contact information Guide to completing your Personal Income Tax Return 2 Commonwealth of Dominica - Inland Revenue Division 1.

Introduction The imposition of Income Tax in Dominica is governed by the Income Tax Act, Chapter 67:01 of the Revised Laws of Dominica 1990, generally referred to as the Income Tax Act.

Administration of this Act is vested in the Comptroller of Inland Revenue.
One of the many requirements of the Act is the filing of a Return of Income (Income Tax Return) on an annual basis.

This return is required to be furnished to the Comptroller and shall:- • Be signed by you or an agent authorized to sign on your behalf; • Contain a calculation of your Chargeable Income, if any disclosed; • Contain a calculation of the tax payable; and • Contain an address for service of notices.
Generally your Tax Return must be furnished to the Comptroller on or before March 31 following the end of the Income Year.

However, where a Fiscal Year applies, the return must be furnished on or before the last day of the third month following the end of the Fiscal Year.

For example:- Fiscal Year July to June - return due or before September 30 This guide will assist you in fulfilling your filing obligation under the Law.
It will take you step by step through the process of completing your Income Tax Return.

This includes calculating your:- • Net income; • Allowance and deductions; • Chargeable Income; • Tax on Chargeable Income; • Credits and payments; and • Balance payable or refundable.

2.

Personal Information In order to ensure compliance with the requirements of the law and to facilitate effective communication, the Inland Revenue requires some basic information about you.
This includes:- • Full name; • Home address; • Mailing address; • Date of birth; • Social Security Number; • Nationality; • Martial Status; Guide to completing your Personal Income Tax Return 3 Commonwealth of Dominica - Inland Revenue Division • Name of spouse; • Telephone numbers – work, home and mobile; and • Employers’ name, address and telephone number(s).

In most cases, the information requested above may have already been provided.

You need not provide it if this applies to you.


However, if you are filing for the first time or a change took place (for example you changed employer during the year), the correct and up-to-date information must be provided.

3.

CALCULATING YOUR NET INCOME Most amounts that you earned1 last year are taxable and must be included in your net income.
This includes amounts from:- • Employment; • Pension (excluding that from the Dominica Social Security); • Self employment (business income); • Rental Income; • Commission; • Contractual Gratuity (provided that it is not exempt under the Income Tax Act); and • Benefits from employment (including housing, motor vehicles and utilities) Section 33 of the Income Tax Act gives the full list of sources of income that are taxable.
LINE 101 WAGES AND SALARY FROM GOVERNMENT EMPLOYMENT From your Government December salary slip, enter on line 101, the amount shown in the Taxable Earnings column LINE 102 WAGES AND SALARY AND BENEFITS FROM OTHER EMPLOYMENT From your T.D.5 slip, enter on line 102, the total of the amounts shown in columns Total Remuneration before any Deductions and Total Other Allowances and Benefits.
If you have not received your T.D.5 slip by February 28, or if you have any questions about an amount on the slip, contact your employer immediately.

If you have employment income related deductions, see line 106.

LINE 104 GROSS EMPLOYMENT INCOME Enter the total of lines 101 and 102 on line 104.

1 An amount that you are entitled to although you may not have received it.
Guide to completing your Personal Income Tax Return 4 Commonwealth of Dominica - Inland Revenue Division LINE 106 ALLOWABLE EMPLOYMENT DEDUCTIONS You may be able to deduct certain expenses wholly, exclusively and necessarily incurred to earn employment income.

These expenses will be allowed in cases where:- • They had to be paid under the terms of your contract of employment; and • You received a taxable allowance in respect of the expenses.
For example employees can claim a deduction against travel allowance received where their duties involved traveling during the year.

Documentation indicating the number of miles traveled on work related matters as well as the rate per mile reimbursed should be included with your return.

However, the cost of travel to and from work is not tax deductible Note that expenses incurred for clothes and tools should not be claimed.

Additionally, all claims are subject to the approval of the Comptroller.
LINE 108 NET EMPLOYMENT INCOME Subtract line 106 from line 104 and enter the difference on line 108 LINE 113 GROSS PENSION Enter the gross pension accrued.

Government pensioners should enter the amount from the Taxable Earnings on their December salary slip.

Other pensioners should enter the amount shown as Total Remuneration before any Deductions on their T.D.5.

slip.

Note that an amount received from the Dominica Social Security is exempt and should therefore not be included.
LINE 114 ALIMONY OR MAINTENANCE Enter the gross amount accrued on line 114.
In most cases your alimony or maintenance receipts are taxable if all of the following conditions are met:- • When the payments were made, you and the person making the payments were living apart and you continued to live apart for the rest of the year; • The payments were made under a court order or a written agreement; • The payments were made to maintain you, your children, or both; • The payments were an allowance to be paid periodically; and • The payments were made to you or to someone else on your behalf.
Guide to completing your Personal Income Tax Return 5 Commonwealth of Dominica - Inland Revenue Division LINE 115 ANNUITIES Enter the gross amount accrued on line 115.

E.g.

a series of equal annual sums received as returns from money invested.

LINE 120 GROSS TAXABLE DIVIDENDS Enter the gross amount accrued from all resident companies.

The gross dividend figure can be obtained from the Dividend Warrant received.
You should also complete Schedule B as taxable dividends received qualify for a Dividend Tax Credit.

This credit reduces the amount of tax that you owe.
LINE 121 COMMISSIONS, DISCOUNTS, FEES, LICENCE CHARGES AND PREMIUM INCOME Enter the gross amount accrued on line 121 in respect of the following:- Commission an amount accrued/received for transacting or carrying on a business or employment Discounts a deduction accrued/received from an amount due Fees a payment accrued/received for services rendered Licence Charges a fee accrued/received for permission to use property Premium Income a lump sum payment accrued/received for the right to use property LINE 130 OTHER INCOME Enter the gross taxable amount accrued (that is not on a specific line of the return).
Details of the type of income and its source should be given on a separate sheet.

Income earned from a source outside of Dominica should also be included.

LINE 141 NET RENTAL INCOME/LOSS A Schedule G Form should be completed detailing income, less expenses wholly and exclusively incurred to produce the income.

A loss must be shown in brackets.


Enter the net Rental Income or loss on line 141 LINE 143 NET BUSINESS INCOME A Schedule G Form should be completed detailing income earned, less expenses wholly and exclusively incurred to produce the income.

A loss must be shown in brackets.

Guide to completing your Personal Income Tax Return 6 Commonwealth of Dominica - Inland Revenue Division If you do not have a Schedule G form, one can be obtained from the office of the Inland Revenue.
Alternatively, a statement of Income and Expenditure should be submitted with your return.

Enter the net Business Income on line 143 LINE 145 NET PROFESSIONAL INCOME A Schedule G Form should be completed detailing income earned, less expenses wholly and exclusively incurred to produce the income.

A loss must be shown in brackets.

If you do not have a Schedule G form, one can be obtained from the office of the Inland Revenue.
Alternatively, a statement of Income and Expenditure should be submitted with your return.

Enter the net Professional Income on line 145.

LINE 147 SHARE OF INCOME/LOSS FROM PARTNERSHIP Enter your share of the net income received from the partnership.

A loss should be shown in brackets.

Note that though itself not subject to income tax, the partnership is required to file a return.
A statement of Income and Expenditure, together with details on the appropriation of the net profit or loss should also be submitted with your return.

Enter the share of income/loss on line 147.

LINE 149 SHARE OF INCOME FROM ESTATE OR TRUST A statement of Income and Expenditure should be submitted with your return.

A loss should be shown in brackets.

Enter the share of income 149.

LINE 150 TOTAL INCOME Enter the total of lines 108 to 149 on line 150.
LINE 151 PRIOR YEAR(S) LOSS With certain limitations you can deduct a net loss of the previous year(s) that have not been claimed.

Losses can be carried forward for five years as provided for by an amendment to the Act (See Act Number 12 of 2003).

You may wish to check with the Inland Revenue to verify the amount of the loss (if any) that can be carried forward.
Guide to completing your Personal Income Tax Return 7 Commonwealth of Dominica - Inland Revenue Division Enter the amount being deducted on line 151.

LINE 152 EXEMPT INCOME This line is to be used by persons reporting Employment Income only.

It should be used to deduct Sickness and or Maternity Benefit refunded to your employer on your behalf by the Dominica Social Security.

A statement indicating the amount refunded should be attached to your return.
This statement can be obtained from the Dominica Social Security.

LINE 155 NET INCOME Subtract line 151 and line 152 from line 150 and enter the difference on line 155.

4.

CALCULATING YOUR ALLOWANCE AND DEDUCTIONS LINE 201 ALLOWANCE FOR RESIDENT INDIVIDUALS If you are a resident of Dominica, you are entitled to claim $15,000.00.

Please note that the allowance is not apportioned – you either qualify for it or you do not.
In order to qualify for the resident allowance, a person has to be physically present in Dominica and one of the following conditions must be satisfied:- • The person’s permanent place of abode must be in Dominica.
This means that the person must have a home, family ties or business transactions carried out in Dominica or Dominica must be the place where the person’s rights and obligations are governed as regards to marriage, taxation etc; • The person must be physically present in Dominica for one hundred and eighty- three days (183) in the year of assessment; • The person must be physically present in a year which is continuous with another year that the person had been present for one hundred and eighty-three days (183) as stated above.
Providing that you qualify, enter $15,000.00 on line 201.

LINE 202 MORTGAGE INTEREST If you have a mortgage loan with a financial institution, you may be able to claim this deduction.
In order to qualify for mortgage interest deduction the following conditions must be satisfied:- • You must be a resident; Guide to completing your Personal Income Tax Return 8 Commonwealth of Dominica - Inland Revenue Division • The property must be owner-occupied for residential purposes; and • The property can either be acquired or have had improvements made to it.

The deduction may be claimed by more than one individual.

However, the maximum amount allowable shall not exceed $15,000.00.
When claiming Mortgage Interest a statement from the relevant financial institution must be submitted with your return.

This statement will give all the required details regarding your mortgage loan.

If you have mortgage loans with more than one financial institution, a statement must be submitted from each.

Note however, that the amount you are entitled to cannot exceed the maximum allowable, that is, $15,000.00.

You are advised to keep a copy of the statement(s) for your records.
With regards to owner-occupied residential property, it is important that the Inland Revenue has on file a copy of your Certificate of Title as it verifies ownership of the property.

If you are claiming the deduction for the first time, you should submit a copy of the title with your return.

Enter the amount of interest paid to a maximum of $15,000.00 on line 202.

LINE 203 APPROVED DONATIONS Enter the amount of your contribution or donation.
Claims for contributions or donations may be allowed if they were made to any of the following:- • The Education Trust Fund; • The National Development Foundation of Dominica; • The Council of Legal Education; • A scholarship through the Ministry of Education for secondary or college education within Dominica or the University of the West Indies; • The Princess Margaret Hospital Trust Fund; • Community Hostels Incorporated of Dominica; • A contribution of not less than $1,000 but not more than $20,000 to a special fund operated by a Carnival Organising Committee designated by notice of the Minister (for finance) published in the Official Gazette; • The following charitable institutions designated by Order of Cabinet as an approved charity:- o R.E.A.C.H.
; o The Dominica Infirmary; o Grotto Home for the homeless; and o The Alpha Centre.

Official receipts for donations made must be attached to your return.

Guide to completing your Personal Income Tax Return 9 Commonwealth of Dominica - Inland Revenue Division Enter the amount on line 203.

LINE 204 NET INCREASE IN UNITS PURCHASED IN D.U.T.C.

If you purchased units in the Dominica Unit Trust Corporation, you are entitled to claim a deduction.
However, your claim is limited to the net increase in units purchased between the current year and the previous.

For example, if at the end of 2004 you had units totaling $3,500.00 and at the end of 2005 your units totaled $5,000.00, you are entitled to claim on your 2005 return the difference (or net increase) of $1,500.00.

You should attach a copy of the relevant document to substantiate your claim.

Enter the amount of the net increase on line 204.


LINE 205 INTEREST PAID ON STUDENT LOANS If you paid interest on a loan granted to pursue a course of study on your behalf or that of someone else, you may be entitled to a deduction of the interest paid.

However, in either case the amount of the deduction is limited to $5,000.00.

In order to qualify for this deduction, the following conditions must be satisfied:- • • In the case of a current student, proof of enrollment for the particular course of study.
Note that the student must be enrolled for a period not less than six (6) months and be registered for at least one course; and In the case of an individual who has completed their course of study, the individual must be domiciled and resident in Dominica.

Where the student is currently enrolled you should submit documentation regarding enrollment from the Educational Institution with your return.

This documentation is required every time a claim is made.
Where the course of study has been completed a certified copy of the certificate and evidence to show that the student is domiciled in Dominica should be submitted with your return.

Enter the total amount claimed on line 205.

LINE 210 TOTAL ALLOWANCES AND DEDUCTIONS Enter the total of lines 201 to 205 on line 250.

This is your Chargeable Income (on which the tax due for the year is charged).

Guide to completing your Personal Income Tax Return 10 Commonwealth of Dominica - Inland Revenue Division 5.
CALCULATING YOUR TAX PAYABLE This section of the guide shows you how to calculate the tax payable on your Chargeable Income.

You should select only one conditions presented in the return.

The total tax payable using the condition which applies to you should be entered on line 300.

LINE 300 TOTAL TAX ON CHARGEABLE INCOME The total amount payable as calculated using the applicable condition referred to above should be entered on this line.

6.
6.

CALCULATING YOUR CREDITS AND PAYMENTS LINE 312 DIVIDED AND DOUBLE TAX CREDIT DIVIDEND TAX CREDIT Where you included Dividend (from a resident company) in your total income and your tax payable has increased to a rate of 30% or less, the increase in tax is allowed as a tax credit.

Where you included Dividend (from a resident company) in your total income and your tax payable has increased to a rate greater than 30%, a tax credit equal to 30% of the Dividend is allowable.
DOUBLE TAX CREDIT This credit applies in cases where income from a source outside of Dominica was declared on your return and tax was paid on the income.

Where an agreement exists between Dominica and other countries, credit for tax paid shall be given in the manner as provided for in that agreement.

In most cases, the Double Tax Credit you can claim for each country is the lower of the following two amounts:- • The foreign tax that you actually paid; and • The local tax payable on the foreign income.
HOW TO CLAIM • Complete the section on Double Taxation Credit on Schedule B, Part III of your return; Guide to completing your Personal Income Tax Return 11 Commonwealth of Dominica - Inland Revenue Division • Attach documentary evidence (such as official receipts) showing the foreign tax paid.

Enter the total of Dividend and Double Tax one line 312.
LINE 320 PAYE DEDUCTIONS For government employees enter the amount shown as Income Tax deducted in the column ‘income tax paid to date’ from your December salary slip.

For non-government employees enter the amount shown in the column ‘income tax deducted’ column on the T.D.5 slip.

Enter the amount deducted on line 320.

LINE 321 INSTALLMENT PAYMENTS If you made installment payments enter the total amount paid line 321.
LINE 350 TOTAL CREDITS AND PAYMENTS Enter the total of line 312 to line 321 on line 350.

LINE 351 DIFFERENCE Enter the difference between line 350 and line 300.

LINE 352 LATE-FILING PENALTY If your return is being filed after the due date, that is, March 31, three months after the end of your Fiscal Year , or a later date granted, you are liable for a penalty.

Multiply the figure on line 300 by 5% and enter the result on line 352.

LINE 353 TOTAL AMOUNT OUTSTANDING Enter the total of line 351 and 352.
LINE 354 PAYABLE/BALANCE DUE Enter total outstanding on line 354 if it is a payable (amount due to the Comptroller of Inland Revenue).

LINE 355 REFUND/AMOUNT OVERPAID Guide to completing your Personal Income Tax Return 12 Commonwealth of Dominica - Inland Revenue Division Enter total outstanding on line 355 if the amount is a refundable (due to you by the Comptroller of Inland Revenue).
LINE 356 BALANCE TO BE PAID ON FILING If your return shows a balance payable, you must make payment of the tax due on or before March 31.

Failure to do so will result in the necessary penalties and interest being imposed in accordance with the provisions of the Income Tax Act.

Enter the amount you are paying when filing your return on line 356.

7.
7.

COMPLETING THE SCHEDULES SCHEDULE A ALLOWABLE EMPLOYMENT INCOME RELATED DEDUCTIONS You may claim as a deduction any expenses that were wholly, exclusively and necessarily incurred in the production of your employment income.

Note that claiming any such deduction is not automatic and that the Comptroller of Inland Revenue reserves the right, in law, to allow or deny a claim.

All documentation in support of your claim should be attached with your return.
SCHEDULE B DIVIDEND AND DOUBLE TAX CREDIT PART I - DIVIDENDS RECEIVED DURING THE YEAR FROM RESIDENT COMPANIES • Enter the name(s) and address(es) of resident companies from which dividends were received during the year; • State the type of distribution and the amount received from each company; • Total all dividends received; • Deduct dividends that were paid from exempt income; and • Enter the gross taxable dividends and distributions online 120 of your return.
PART II - TAX CREDIT FOR DIVIDENDS PAID BY RESIDENT COMPANIES Enter the rate of tax payable upon inclusion of gross dividends in your assessable income.

If the rate is 30% or less, enter the additional tax payable on line A.

If the rate is greater than 30%, enter a tax credit equal to 30% of the dividends on line B.
PART III - DOUBLE TAX CREDIT Guide to completing your Personal Income Tax Return 13 Commonwealth of Dominica - Inland Revenue Division • Enter the name of the company, type of income and gross income received during the year; • Enter the rate of foreign tax and the amount claimed as double taxation credit; • Total the amount claimed and enter it on line C; • Add line A or B, plus C; and • Enter this amount on line 312 of your tax return.
A statement showing the total income received and total tax deducted by the foreign company must be attached to your return.

SCHEDULE C RENT PAID IN RESPECT OF RESIDENTIAL AND OR BUSINESS ACCOMMODATION • Enter the name of the owner or agent of the property; • Enter the address of the property; • Enter the rent paid for the year; and • Indicate whether the owner or the agent of the property resides in Dominica.
SCHEDULE D RENTAL AND ROYALTY INCOME (LOSS) For each property indicate:- • The kind of property (e.g.

Residential); • The location of the property; • Whether you or your family resided in the property during the year; • The income derived from each property; • The expenses related to the earning of the income; • The total expenditure; • The Residential Building Expenditure (if applicable); and • The net result (profit or loss).
Particular attention should be paid to the guidance notes on completing this schedule which can be found on page 3 of your tax return.

8.
CHECKLIST Once you have completed your return, you should ensure that:- • The certificate on page 4 is completed and the return is signed; • All statements required when claiming deductions are attached; • Any balance payable is submitted with your return (do not mail cash); • Cheques or Money orders should be made payable to the Comptroller of Inland Revenue; • Your return is submitted to the Comptroller of Inland Revenue on or before March 31, or three months after the end of your fiscal year; and Guide to completing your Personal Income Tax Return 14 Commonwealth of Dominica - Inland Revenue Division • Copies of your return and all documents are made for your records.
9.

CONCLUSION AND CONTACT INFORMATION This guide was produced with you in mind.

This is one of the many ways in which the Inland Revenue aims to empower you, the taxpayer to be able to comply with the requirements of the Income Tax Act.

We trust that the guide has been of assistance to you and therefore welcome your valuable feedback on it contents etc.

This will assist us in making improvements where necessary and therefore better serve you.
In that regard, if you require further information and assistance please contact us on:- Telephone Fax Email Or write to:- 1 767 266 3600 1 767 448 1893 irddom@cwdom.dm The Comptroller of Inland Revenue Inland Revenue Division P.O.

Box 164 Roseau We will be happy to serve you.

Guide to completing your Personal Income Tax Return 15