Thinking of moving on from the beautiful shores of Dominica? If you're a tax resident looking to cease your tax residency, there are several steps you need to follow to ensure everything is in order. Let's walk you through the process!
Step 1: File Final Tax Return
Submit your final tax return for the year you plan to cease residency. This should include all income earned up to the date you intend to leave Dominica. Ensure that all taxes due are fully paid.
Step 2: Clear Outstanding Tax Liabilities
Ensure that all outstanding tax liabilities are cleared. This includes any unpaid taxes, penalties, or interest that may have accrued over the years. Obtain a tax clearance certificate from the Inland Revenue Division.
Step 3: Notify the Inland Revenue Division
Formally inform the Inland Revenue Division of your intent to cease being a tax resident. This notification should be in writing and include the date of your departure and new address if available.
Step 4: Cancel or Transfer Business Licenses (if applicable)
If you have any business licenses or permits, ensure these are either canceled or transferred to another individual or entity. This step is crucial to avoid any future tax liabilities associated with your business.
Step 5: Close Local Bank Accounts
Close any local bank accounts in Dominica to prevent any future tax obligations. Make sure to settle all transactions and withdraw your funds before closing the accounts.
Step 6: Deregister from Social Security and Other Local Programs
If you were part of any social security or local programs, ensure you deregister from them. Notify the relevant authorities to avoid any future contributions or liabilities.
Step 7: Retain Documentation
Keep copies of all documentation related to the cessation of your tax residency. This includes your final tax return, tax clearance certificate, and any correspondence with the Inland Revenue Division.
Legal References
- Income Tax Act, Chapter 67:01
- Tax Administration Act, Chapter 69:01
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