Dominica’s international exempt trusts are created for various reasons. Among them: the minimization or deferral of tax liability, the simplification of legal formalities relating to asset distribution on death, the protection of assets, the protection of confidentiality on a transfer of assets, and the severance of legal ownership from assets whilst retaining the benefits. Trusts created in the Commonwealth of Dominica can take advantage of the territory’s innovative legislation.

Main Features:

  1. Legislation – International Exempt Trust Act 1997
  2. Has either a corporation regulated by the Companies Act 1994, a bank licensed under the Banking Act 1991 or the Offshore Banking Act 1996 as one of its trustees
  3. Trust property is situated solely outside Dominica
  4. Trust beneficiaries and settlor cannot be residents of the island
  5. Maintains a registered office and a registered agent in Dominica
  6. Every year must submit audited financial statements and reports to the Financial Secretary
  7. Maybe established for charitable purposes, protection against spendthrift tendencies, or for non-charitable objectives
  8. Established upon issuance of a Trust Deed
  9. Not subject to the ‘rule against perpetuities’ and the ‘rule against accumulations

Dominica Trust Legal Requirements

Dominica Trust

Corporate Details

Restricted

  • Type of Entity

Exempt Trust

  • Registered Office in Dominica

Yes

Share capital or equivalent

  • Standard currency

USD

  • Permitted currencies

Any

  • Minimum paid-up

None

Trustee

  • Minimum number

One

  • Corporate directorship allowed

Yes

Protector

  • Minimum number

One

  • Corporate shareholder allowed

NA

Accounts

  • Requirements to prepare

Yes

  • Audit requirements

Yes

  • Requirements to file accounts

Yes

 Tax Requirement

Dominica International Exempt Trust is tax exempt.

Duration of Set up

2 Weeks

Advantages of Dominica Exempt Trust

  1. Exemption from all income taxes, ad valorem stamp duties and all exchange control taxes.
  2. The formation of charitable and non-charitable trusts through recognition of purpose trusts.
  3. A wide range of estate planning options through the non- applicability of the Rule against Perpetuity. The duration of an international trust is 100 years.
  4. Protection of assets, preservation of wealth, commitment to privacy and anonymity, zero tax, and ease and flexibility of operations.
  5. Protection of privacy, no information can be disclosed unless a trustee authorizes so in writing. 

The Valsen Advantage

  1. End to end comprehensive service
  2. Speedy and efficient service
  3. Expert advice on structuring options
  4. Dedicated ongoing compliance support
  5. Extensive network pool of service providers