2021 INCOME TAX (AMENDMENT) ACT 13
COMMONWEALTH OF DOMINICA
ACT NO. 13 OF 2021.
I assent
CHARLES A. SAVARIN President
8th December, 2021.
AN ACT TO AMEND THE INCOME TAX ACT, CHAP. 67:01.
BE IT ENACTED by the Parliament of the Commonwealth of Dominica as follows:
(Gazetted 9th December, 2021.)
1. This Act may be cited as the –
INCOME TAX (AMENDMENT) ACT, 2021.
Short title.
89
LS
90 2021 INCOME TAX (AMENDMENT) ACT 13
2. In this Act the Income Tax Act is referred to as “the Act”.
3. The Act is amended by inserting the following new section 27A immediately after section 27 –
27A. Notwithstanding sections 38 and 61(3), the rental accruing to a resident individual from the lease of a property used for residential purposes is exempt from tax.”.
4. Section 41 (1) of the Act is amended –
(a) in paragraph (a) by inserting the words “licence fees, branding fees, royalties or” immediately before the word “management”;
(b) in paragraph (b) by –
(i) deleting the word “or” in subparagraph (i) and substituting the word “and”;
(ii) inserting the word “or” immediately after the semicolon in subparagraph (i);
(ii) deleting the word “or” immediately after the word “royalties” in subparagraph (ii) and sub- stituting the word “and”.
5. Section 48C of the Act is repealed and replaced by the following –
48C. (1) Subject to subsection (2), a student or a benefactor of a student who has contracted to pay and is paying a student loan or the interest thereon shall be entitled to a deduction in respect of all of the amount paid during the basis period for a year of
Interpretation. Chap. 67:01.
Insertion of a new section 27A.
“Exemption: rental income from residential properties.
Amendment of section 41.
Repeal and replacement of section 48C.
“Deduction for student loan interest.
912021 INCOME TAX (AMENDMENT) ACT 13
assessment by way of interest in respect of the student loan.
(2) A person to whom this section applies shall not qualify for the benefit in an income year unless the student in respect of whom the loan is granted -
(a) is enrolled for a period not less than six months in the income year and is registered for at least one course at an approved institution referred to in subsection (3); or
(b) has completed the course of study and is domiciled and resident in Dominica for the income year.
(3) For the purposes of this section “student loan” means a loan granted by any financial institution licensed to carry on business in Dominica in respect of a course of study in a prescribed field at an approved institution that provides mainly tertiary education and “tertiary education” has the same meaning as given in section 2 of the Education Act.”.
6. The Act is amended by inserting the following new sections 48D and 48E immediately after section 48C –
48D. (1) Subject to subsection (3), a resident individual shall be entitled to a deduction in respect of property insurance premiums paid on an owner occupied property during the basis period for a year of assessment.
(2)The deduction allowable under subsection (1) for any year of assessment in respect
Insertion of new sections 48D and 48E.
“Deduction for property insurance.
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of the expenditure shall not exceed eight thousand dollars.
(3) A resident individual shall not qualify for the benefit in an income year unless the property is insured with an insurance company that is registered under the Insurance Act to carry on an insurance business in Dominica.
48E.(1) Subject to subsection (2), a resident individual shall be entitled to a deduction in respect of any individual or family health insurance premiums paid during the basis period for a year of assessment.
(2) A resident individual shall not qualify for the benefit in an income year unless the resident individual is insured with an insurance company that is registered under the Insurance Act to carry on an insurance business in Dominica.
7. (1) Section 3 of this Act applies to the income year 2021 and every subsequent income year.
(2) Sections 5 and 6 of this Act apply to the income year 2022 and every subsequent income year.
Passed in the House of Assembly this 30th day of November, 2021.
DANIEL JAMES Clerk of the House of Assembly
Deduction for health insurance.
Application.
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