Undertaking an investment project usually brings along a number of difficulties, one of the main being financial. Money! That’s right, money most times proves to be a scarce resource for investors, and finding ways to stretch the dollar sometimes in itself proves to be a challenge.
The Government of Dominica, in response to the common need of the investors has put in place a range of tax breaks referred to as “fiscal incentives” whereby the investors can save money and in the process make the dream of having their own business a reality.
But what types of fiscal incentives are available to investors, and how do they really help? There are three categories of fiscal incentives and they are:
- waiver of taxes on imported capital items
- income tax exemption, and
- value added tax (VAT) exemption.
The investor upon importation of the necessary capital items for his business will be granted a waiver of import duty and in the case of new businesses a waiver of VAT. The investor may also qualify for a waiver of income tax based on his/her level of investment. These tax breaks are intended to assist investors with additional cash on hand to meet other current expenses.
I can imagine that every investor would be happy to receive those incentives, however, while the government continues to seek ways to assist all investors, there are currently relief programs in place for investments in key sector areas such as tourism, agro-processing, manufacturing and services.
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