Inland Revenue Division (IRD)

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Inland Revenue Division (IRD) is the government agency responsible for tax administration, revenue collection, and enforcement of tax laws in the Commonwealth of Dominica.

About the Inland Revenue Division (IRD)

The Inland Revenue Division (IRD) is the government agency in Dominica responsible for administering tax law, collecting revenue, enforcing tax compliance, and implementing fiscal policy measures. Operating under the Ministry of Finance, the IRD ensures that individuals and businesses pay their rightful share of taxes, which funds public services, infrastructure, and development. The agency is modernizing rapidly through digital tools such as e-filing, online calculators, and electronic tax returns.

Its headquarters are located on High Street, Roseau, and it maintains contact numbers and departmental lines including assessors, audit, collections, objections, and systems.

Key Functions & Services

The IRD provides a range of core services and tax functions:

• Personal Income Tax: Residents and non-residents with Dominican income must file. Returns are due March 31 each year.
• Corporate Income Tax: Administration of tax liability for businesses registered and operating in Dominica.
• Pay As You Earn (PAYE): Withholding taxes on employee earnings handled monthly by employers remitting to the IRD.
• Withholding Taxes & Excise: Applies to dividends, interest, royalties, and excisable goods.
• Licences & Permits: The IRD issues professional licences, liquor licences, and business licences under its purview.
• Taxpayer Services & Enquiry: The Tax Roll / Enquiry section assists taxpayers in completing returns, updating records, assessing balances, and reactivating/inactivating accounts.
• Audit & Collection: IRD audits tax records, enforces compliance, imposes penalties, and handles objections and appeals.
• Filing Support & Extensions: Taxpayers may request extensions before deadlines; late filing incurs penalties and interest.

Tax Rate Structure

As of the current structure:

• The first EC$30,000 of chargeable income is tax free.
• The next bracket (30,001–50,000) is taxed at 15%.
• Income from 50,001 to 80,000 is taxed at 25%.
• Amounts above 80,000 are taxed at 35%.

There is also a Resident Allowance of EC$30,000 for individuals.

Processes & Compliance

Taxpayers and businesses go through the following typical processes:

1. Registration / Tax Identification: Individuals, partnerships, and corporations must register and obtain a Tax Identification Number (TIN).
2. Submission of Returns: Annual personal income tax returns by March 31, even when only employment income is involved.
3. Withholding / PAYE Remittance: Employers deduct taxes from wages and remit monthly to IRD.
4. Assessment & Objections: After tax returns are filed, IRD assesses liabilities. Taxpayers can file objections or appeals if they disagree.
5. Audits & Enforcement: Selected taxpayers are audited. Non-compliance leads to penalties (10%), late interest (1% monthly), or legal action.
6. Extensions & Adjustments: Written requests may be granted to extend filing deadlines if applied for before due date.

Non-compliance penalties include 10% late payment penalty and monthly 1% interest.

Administration & Public Interface

Among its internal functions, the IRD maintains records, issues licenses (such as professional and liquor licenses), monitors compliance, and hears objections or appeals concerning tax assessments. It also provides support services to taxpayers, host informational resources like tax calculators and FAQs, and coordinates with other government bodies to align fiscal policies.

The Inland Revenue Division remains a central institution in Dominica’s governance, ensuring that fiscal responsibilities are met, revenue is collected transparently, and public funds are supported by a robust tax framework.