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 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. 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. 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 in which to invest. 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 THE MANDATE OF INVESTDOMINICA AUTHORITY IS AS FOLLOWS: Formulate strategies and programs to promote Dominica as a jurisdiction in which to invest. 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 -

SECTORS WHICH QUALIFY FOR CONCESSIONS Tourism accommodation and ancillary services Manufacturing Agro processing Professional and IT enabled services Medical tourism and medical services Cultural and entertainment industries Any other sector with potential for employment, increase foreign exchange earnings and overall contribute positively to national income. SECTORS WHICH QUALIFY FOR CONCESSIONS Tourism accommodation and ancillary services Manufacturing Agro processing Professional and IT enabled services Medical tourism and medical services Cultural and entertainment industries 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 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

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 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 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) 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 activi ty) 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 activi ty) -

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 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? Retrieve an application from IDA online URL Retrieve an application from IDAs Office Submit a completed application to Invest Dominica Authority with accompanying documents Receive letter granting approval of concession request Submit Master List of items for waiver of duties Receive stamped approve list of items Proceed to customs to clear items at the port HOW CAN CONCESSIONS BE OBTAINED? Retrieve an application from IDA online URL Retrieve an application from IDAs Office Submit a completed application to Invest Dominica Authority with accompanying documents Receive letter granting approval of concession request Submit Master List of items for waiver of duties Receive stamped approve list of items 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 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 (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. 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 TEL fax CONTACT INFORMATION Invest Dominica Authority First Floor, Financial Centre Roseau, Commonwealth of Dominica TEL fax

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